• Blog Home
  • Search on Hubzu.com
  • Category
    • Buying a Property
    • Financing
    • Investment Guide
    • Tips & Advice
    • Market Trends
    • Press Releases
    • Tips for Agents
  • About Hubzu
  • Support
  • Register
  • Follow Us On

  • Blog Home
  • Search on Hubzu.com
  • Category
    • Buying a Property
    • Financing
    • Investment Guide
    • Tips & Advice
    • Market Trends
    • Press Releases
    • Tips for Agents
  • About Hubzu
  • Support
  • Register

Buying a Property During COVID-19: Is It a Good Investment?

July 9, 2020

Despite various states beginning to reopen, COVID-19 is far from being over. Social distancing is still important and Robert Redfield, MD, Director of the CDC states that, “It continues to be extremely important to embrace recommendations of social distancing, hand washing, and wearing a cloth face covering in public.”

Real estate businesses that depend on in-person interaction have paused operations, while real estate platforms like Hubzu have implemented features like virtual tours and self-showing lockboxes. Investors can feel confident that now may still be an excellent time to move forward with purchasing property investments.

1. Cash buyers hold all the cards

These are uncertain times for all Americans, including sellers who’d prefer to get paid sooner rather than later. Many people may feel pressure to sell properties before any further economic impacts occur and might even accept less money to speed up the process.

For cash buyers, this means a lot of the power is now in their hands. That’s because paying with cash means you get to circumvent many processes that make home-buying lengthy. Since there’s no mortgage involved, banks don’t slow down the purchase with their approval process. And there are less chances of the buyer losing interest because paying with cash typically means they want it immediately. Due to these factors, any investor with the money on hand will likely benefit in this housing market.

2. More serious/ motivated sellers on the market

The pandemic has led to a drop in new real estate listings, which may signal that sellers who aren’t as serious or as motivated are currently holding onto their properties. Instead of looking at the drop in new listings, buyers should see this as a benefit. Imagine all the time and effort that goes into finding a property that’s worth investing in. You must search through hundreds of listings, read tons of property descriptions, visit homes in person, etc. And then there’s still a chance of the seller pulling out at the last second.

Thankfully, platforms like Hubzu’s Signature Seller Auctions offer a 7-day auction cycle for sellers as well as maximum listing exposure and real-life market value feedback for the property to help facilitate a better experience for both the buyer and seller. And while there may be less variety for investors to choose from, the truth is current sellers may be more motivated to sell than usual. People often need cash during times like this, and investors should take advantage of these opportunities.

3. Mortgage rates are at record lows

Interest rates on mortgages have steadily been falling to record lows since the pandemic initially hit. For reference, the last time America’s seen rates this low was during the recession of 2008-2012, when rates were as low as 3.31%. This could represent a special opportunity for investors who can’t pay with cash and are looking for other ways to finance their property.

4. Virtual tours and self-showing lockboxes facilitate safer property inspections

With the advent of tools like self-showing lockboxes and virtual 3D tours, Hubzu can help real estate investors tour properties safely by limiting human interaction. Instead of touring properties with an agent and/or the seller, buyers can tour houses on their own with self-showing lockboxes. And if you prefer to do your touring without leaving your own home, virtual tours offer a full 3D layout of the property that buyers can access entirely online.

The current pandemic offers the perfect opportunity to buy

The pandemic has proved to be a complicated time for people across the country. But that doesn’t mean you should halt the expansion of your portfolio. Take the time to analyze the above methods that can help facilitate your growth during this period. And with mortgage rates at the lowest they’ve been in years, now represents a great time for investment! Just plug in your preferred area on Hubzu and take your pick!

Real estate investor
Share

Tips & Advice

Edgard Negron

You might also like

COVID-19 Housing Market Update for February 2021
February 12, 2021
If you’re in Forbearance and are worried about foreclosure, Hubzu can help!
November 4, 2020
Adding Central Air Conditioning and Duct Work to an Investment Property
September 14, 2020
  • About Hubzu

    hubzu.com

    Hubzu is your go-to for hard-to-find properties. With about 3,500 properties available on average, we’re one of the largest online real estate marketplaces. Take a look.
  • Follow Me On



  • TREC: Info About Brokerage Services | Consumer Protection Notice

    Property is available to all persons, regardless of race, color, religion, sex, handicap, familial status, or national origin.

    Fair Housing and Equal Opportunity | Your PRIVACY Rights | Terms & Conditions | Disclaimer & Trademark

  • More on Hubzu

    • Meet Hubzu
    • Home Auctions
    • Support
    • Why Hubzu?

    Popular Locations

    • Chicago Real Estate
    • Baltimore Real Estate
    • Miami Real Estate
    • Houston Real Estate
    • Las Vegas Real Estate
  • apple store google store

© 2012-2021 Altisource. All Rights Reserved.