Buying and Selling a House during Covid-19
Types of Mortgages in Canada
October 4, 2021
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October 7, 2021Buying and selling real estate has never been easy and it's even more hectic during a global pandemic. However, if you do some preparation beforehand and stay up to date on provincial and local regulations, you could find that right now is still a great market to buy and sell your next home.
Selling a House
Selling your home in the midst of this pandemic may seem daunting due to the threat of spreading the virus or getting penalized by the government for not following the Covid-19 guidelines. There are still some efficient ways to sell your house while keeping yourself and those around you safe.
Virtual Open House
Technology has helped a lot when it comes to dealing with the Coronavirus pandemic, allowing people to have an alternative means to meet and even see different places without spreading the virus. Sellers can take advantage of technology by setting up a virtual open house. A virtual open house is just like a regular open house but instead you do it online.
This way, buyers who are interested can tour your home without stepping a foot inside. This setup of an open house is mostly used when a buyer is trying to purchase a house that’s in a different province or country, but due to the pandemic, this is the best way to provide the buyer with the tour of your house.
Advertising
As with anything you have to sell, you need to do some advertising. Since people have been mostly staying at home, they have more time to access the internet and even browse social media platforms. Use this to your advantage by utilizing your social media to advertise your house. The best thing about posting your advertisement on sites like Facebook, Instagram, or Twitter is that it is free of cost.
Electronic Signing
Once you have an offer for your house, you can proceed to the next steps digitally. There are many different e-signing programs that you can use to sign contracts without having to go into an office to meet your lawyer or realtor. If you have any questions regarding the documents, you can have a virtual meeting with your lawyer; have your queries resolved by the lawyer and then sign the documents.
In the past lawyers were not allowed to witness the signing virtually. However, due to Covid-19 the law society of Ontario has allowed the lawyers to witness the signing through online video platforms.
Hiring a Real Estate Agent
Real estate agents make your life easy by taking most of the work and responsibility. An experienced agent knows how to prepare your home and deal professionally with potential buyers. They make the process of home selling efficient and quick because of their knowledge of the local area and experience.
The current situation of the world increases the need of a realtor. They will help you sell your home swiftly without you having to set a foot outside. You can meet with them virtually and discuss everything. They can bring a potential buyer, give them a virtual tour, draft a contract and have it signed electronically.
Buying a House
Buying a house was already a hectic and stressful process. The current situation of pandemic has made the whole process even more difficult. While it is difficult to go out and physically tour the house or meet with real estate agents, there are still certain ways that can make the process as convenient as possible.
Assess your Situation
In the pandemic you should know your situation before buying a house. You should know how stable you are financially and if you can continue to stay like that in the coming future. Try to achieve a good credit score before applying for a mortgage because higher credit score will result in a low interest rate. Evaluate your finances and make sure you have enough money to pay for both the down payment as well as the closing costs.
Use a Realtor
Prepare a list of realtors you think will set you at ease. Set up virtual interviews with your short-list of agents and ask them how they have adjusted to the COVID-19 housing market. What tools are they using to show houses? How are they ensuring the safety of their clients? Ideal candidate is someone who has been on the tech-train for some time and is already comfortable with virtual showings and transactions.
Fixed vs Variable Rate Mortgage
Interest rates were already quite low as compare to the past. Interest rates are at their all-time lowest and pandemic is one of the biggest reason behind that. If you are planning to buy a house, this maybe the best time to obtain a mortgage and enjoy the perks of low interest rate.
The benefit of a fixed rate mortgage is that you will pay the same interest throughout the whole term. Whereas a variable rate loan has an interest rate that adjusts over time in response to changes in the market. However, interest rates are lower for variable rate mortgage as compared to the fixed rate mortgage.
Analysis of the real estate market has shown that variable rate mortgage is outperforming the fixed rate mortgage. However, it is most important to consider your personal financial situation and the specifics of each loan before deciding whether to choose fix or variable rate.
Pre-Qualification for a Mortgage
In order to reduce the amount of home viewers to serious-buyers only, many realtors are only accepting viewing appointments from buyers who have already been prequalified for a home loan. This can help lower their risk of exposure by not showing a home to people who are not serious about making a purchase or who will not get approved for the mortgage. Considering the current situation, your best course of action is to prequalify for a mortgage.
Conclusion
Although the already hard process of buying and selling real estate has become even more difficult due to the Covid-19 pandemic, you can still get it done efficiently by taking into account the above mentioned tips. Whether you are selling a house or buying a property, use a realtor. They will eliminate the need for you to leave your home. They can also draft contracts and have it signed virtually.
Take advantage of virtual open houses and complete your house hunt from the comfort of your home. Adhere to Covid-19 guidelines and maintain social distancing if you have to go out at any step of the transaction.
About the Author
Abdul Moqeet
Assistant Manager, Real EstateTreadstone Associates
1 (844) 900 1070
