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    Has Coronavirus affected the Real Estate Market

    The real estate market was booming, then came the Coronavirus, also known as Covid-19. The economy was shut down, and Real Estate was considered an essential business to keep open. It did affect the market in other ways.
    • How it affected buyers: People planning on buying a home, and financing the home are in trouble if they have been laid off, temporarily or permanently. Some buyers were already in the process of buying a home, and no longer qualify for the mortgage because of a job loss, so that purchase falls through. Others need not apply until they are hired back by the same employee or hired in a similar occupation. Either way, expect a little more work to get the needed documentation together to satisfy the lender.
    • How it affected the seller: Sellers get a contract on their home, then they make plans to move out, and close on the home. But, the buyer is laid off, and the mortgage company no longer agrees to the loan. So, the buyer who was prepared to make a move to the home of his dreams, and the seller has made preparations to buy another home, or relocate somewhere else, are now back at the beginning. This can be a physical and mental stressor for all party’s involved, including the Realtors.
    • How it affected the Investor who Rents a property: When the country was shut down, renters were given a 90-day window to not make rental payments. This is great on their part, but those who could still afford to make payments need to do so. 1/3 of all renters defaulted on their rents on April 1st, and this put’s landlords in a bind. If the owners are making monthly mortgage payments, and the rent does not come in, their mortgage payment is still due. If the owner cannot afford to make the mortgage payment, they could go into foreclosure themselves. Are you catching on to the domino effect yet?
    • How it affected the Realtor, and Mortgage Professional: Both of these business professionals work on commission only. No sale, no payday. Plus there is extra work and stress for us as well. Added documentation go close the transaction, making sure security deposits are returned to the buyer, and the bad feelings of the seller who now has to go through the stress of trying to sell during adverse times, and possible home prices devaluing.
    We will recover from this, but our plans and patients will be put to the test. Remember, we are all working towards the same goal, and for some reason that is no one’s fault, things change. Please remember that the economy will come back, and if we can remember to be kind towards one another, it will get here in a more pleasant atmosphere.

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