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!