How COVID Has Changed Buying and Selling
Are you working with a Manhattan or Brooklyn realtor to buy or sell property in 2021? While the pandemic has fundamentally changed the way both buyers and sellers conduct transactions, COVID has not dampened the real estate market. Here is what the changes in the industry mean for both buyers and sellers.
A Focus on Virtual
Since the beginning of the pandemic, many cities have banned in-person open houses and put stringent restrictions on showings. Real estate agents, buyers, and sellers are using virtual tools to fill in the gaps and continue the process of buying and selling Manhattan or Brooklyn real estate.
In addition to virtual showings, tours, and open houses, the industry has also turned to virtual solutions for obtaining insurance, signing paperwork, and closing on a home. This has allowed both buyers and sellers to complete the entire buying or selling process without ever meeting in person to stay healthy. The vaccine rollout has caused more relaxed restrictions, and in-person showings and closings are resuming. However, it’s unlikely that virtual options will fade since the industry has learned how much time, energy, and money these services can save.
How This Affects Buyers
Buyers can look at Manhattan or Brooklyn real estate, take tours, and even make offers without ever leaving the comfort of their own homes. This allows them to consider more options in less time and ensure they are settling on the home that best fits their needs.
How This Affects Sellers
Sellers can reach more potential buyers than ever with virtual showings and open houses. If they work closely with their Manhattan or Brooklyn realtor, they can effectively market their homes worldwide and receive more and more significant offers on their homes.
Need for Quality Online Marketing
Before COVID, a quality piece of Manhattan or Brooklyn real estate could speak for itself when interested buyers viewed it in person. After COVID, this option went away when most people stopped looking at houses in person and relied on the internet to narrow down their list of options. This made high-quality marketing materials such as professional photography, videography for tours and virtual walk-throughs, and detailed written descriptions more important than ever. These marketing materials create enticing social media ad campaigns and build landing pages that can help sell the home without it ever being viewed in person by potential buyers.
How This Affects Buyers
High-quality marketing materials benefit buyers by deciding which homes they are genuinely interested in and want to spend their time and energy viewing in person. When you’re looking for Manhattan or Brooklyn real estate, make a point to go through each online listing and view all the virtual options before deciding which homes you are most interested in.
How This Affects Sellers
Sellers who don’t invest in high-quality professional images and videography and who don’t work with a Manhattan or Brooklyn realtor who has access to lead-generating online marketing tools are unlikely to be able to compete in this market. If you’re ready to sell, make sure to build these services into your budget.
Competition for Homes Has Increased
The real estate industry not only remained strong throughout the pandemic, but it got hotter than it had been in decades. Work-from-home policies allowed those in metro areas to reconsider their living situations and find homes in intimate and vibrant areas like Park Slope or Brooklyn Heights, driving prices up and inventory down. Many sellers were reluctant to put their Manhattan or Brooklyn real estate on the market as they waited for more certainty in the economy or their own financial stability, causing inventory to dip even lower and competition to increase. Homes often sell within days or even hours of being listed and are selling for thousands above the asking price.
How This Affects Buyers
In a strong seller’s market, buyers have to be ready for the competition by acting fast when they find a home they love. This includes being preapproved for a mortgage, getting paperwork in order, and knowing exactly how much they are willing to offer for a home. Buyers who take time to consider their offer are likely to lose out to a more motivated competitor.
How This Affects Sellers
Sellers can expect to get more offers for more money in a competitive market. However, this does not mean they can inflate their home’s price or skimp on quality marketing. Sellers who price their homes fairly and invest in online marketing are likely to sell their homes quickly and for at or above the asking price.
Record Low Mortgage Interest Rates
To stimulate the economy and counteract weak consumer spending during the pandemic, the government dropped mortgage interest rates to all-time lows. This sent buyers who were previously on the fence about investing in Manhattan or Brooklyn real estate scrambling to find a property to buy and those who already owned property to consider refinancing. Though rates have increased in 2021, they are still hovering around the 3% mark for a 30-year fixed-rate loan and even lower for a 15-year fixed-rate, and they’re unlikely to increase significantly in the near future.
How This Affects Buyers
Buyers can expect to get more square footage for their money when interest rates are this low or save money on their monthly loan amounts. Those who have not yet purchased Manhattan or Brooklyn real estate should consider doing so before the rates increase.
How This Affects Sellers
Sellers can expect interest in their properties to remain strong as long as interest rates are low. They can also benefit by saving money when purchasing a new home to move into after theirs sells.
The real estate industry remains hot—a trend that is likely to continue as the economy recovers and consumer confidence increases. If you’re ready to buy or sell, work with an experienced Manhattan or Brooklyn realtor like Travis Pham & William Mascio, who can help ensure your transaction is successful.