Housing is the item on which Filipinos spend the most money on. When making one of the most important financial decisions of your life, it's a good idea to consider your options, comprehend the state of the market, and provide yourself with the necessary knowledge. When purchasing or selling a home, this has always been true, and in the current environment, it is much more crucial.
Nearly every industry has been influenced by COVID-19, and the real estate market has seen a number of significant changes. Although there is a multitude of information regarding financing, opportunities for purchasing, and selling a property in the present market available online, not all of it is accurate. Here are the top five real estate myths from customers, along with what you need to know about each.
Buying a home has less competition.
You might be tempted to believe that purchasing a home is less competitive because people are compelled to stay at home, postpone their aspirations, and make significant life adjustments. However, there has been a minor uptick in buyer demand due to motivating elements like decreasing borrowing rates. Additionally, property purchasers are more likely to be financially stable and able to make better offers.
Many current homeowners are choosing to refinance their homes in an effort to benefit from cheap mortgage rates. This has overburdened lenders and prolonged the typical closing period. Building flexibility into your timeline is a fantastic idea if you're planning to buy a property right now. To have a good understanding of what you can afford before looking at houses, I advise getting preapproved. Dealing with your lender early to reduce the waiting period and avert closing delays is also possible. This may also make your offer stand out from the competition.
Home sales aren't happening because of the epidemic.
Many people don't want to wait, even though recent industry data indicates that 77 percent of potential house sellers intend to list their homes for sale after the conclusion of stay-at-home orders. Additionally, more sellers might start reentering the market sooner as safer self-service solutions become more prevalent. According to Realtor.com, year-over-year declines in new listings are only down 20% as more sellers are entering the market.
The housing market will implode along with the economy.
The real estate market is in a far better position than it was in 2008, despite the fact that we are still unsure of the full effects of this crisis. Due to the prevalence of subprime loans during the 2008 housing crisis, a large number of people bought homes with little or no down payment. In this case, the homeowners were underwater because they had lost even a small amount of the value of their home.
Homebuyers typically pay down 20% of the purchase price today in order to start building equity in their investment property. A homeowner would probably still be able to leave with money in their pocket even if they had to sell their property in an emergency situation, such as when they unexpectedly lost their job or had to move.
Home prices have drastically decreased.
Although there's a lot of talk about buyers waiting for a decline in home prices, this hasn't happened. Additionally, it is unrealistic to anticipate a significant shift. As long as there is a need for housing, prices will remain the same or slightly rise, especially in major cities. Market to market will ultimately determine whether home prices rise or fall, but there shouldn't be a significant shift in either direction anytime soon.
Purchasing a home without first visiting it is a bad idea.
Thoughts of purchasing a home without ever setting foot inside may sound weird, but technology has made it possible to obtain a full sense of a room. Additionally, the real estate sector has created innovative, safe ways for people to see and purchase homes because health and safety are top of mind for home buyers. With 25% more individuals taking virtual tours than previously and a 41% spike in remote agent interactions, requests for Facebook chats, Zoom house tours, and other digital visits are all on the rise.
It's a good idea to obtain images that exhibit various angles of rooms and floor plans with dimensions, in addition to conducting a digital or self-tour, and to inquire about the neighborhood and the local community. Google Maps can be used by buyers to view the neighborhood around the house.
Estate agents determine the cost
One of those myths that is utterly untrue but continues to circulate is this one. We can clearly deny that this is the case because no residential property's sale price is decided by real estate brokers. Agents provide recommendations based on a variety of criteria and provide an educated appraisal of the property's value. The merchant, however, has the option of changing this. However, it is the market itself that will actually "set" the price. The market is always right, regardless of the seller's opinions or the estate agent's assessment. You'll get the best price for your home if you pay attention to what it is trying to tell you.
You must install a new bathroom and/or kitchen to entice purchasers.
As far as we can determine, this one is a result of television. property renovation Everyone believes that these two rooms must be flawless in order to sell the house because TV shows place such a strong focus on them. It's untrue. Kitchens and bathrooms are obviously very significant parts of any house, but it would be foolish to try to estimate the preferences of potential buyers who you have never ever met. Save your money and put it on staging your house for sale instead of installing brand-new bathrooms and kitchens, which frequently wind up in dumpsters.
It's a good idea to educate yourself on current housing trends and facts, whether you're buying or selling a property, but be sure it's correct and up to date. Real estate markets go through cycles, so it's important to understand what's happening in order to make the best choice for you and your family.