Tue. Jul 14th, 2020

Effect that the Coronavirus had on Buying Property

Effect that the Coronavirus had on Buying Property

The corona virus pandemic has affected each every sphere of life and all verticals of business. Likewise it has also affected the real estate market. But now once the lockdowns are over the question that would arise is whether it is advisable to start dealing with properties or is it advisable to wait.

Answering the question as to whether you should start along with the property now or should you wait

Waiting for some time will be helpful. This answer might annoy the estate agents who have found it difficult to make both ends meet since the past two months. But it is always a good option to wait as of now. Most of us are still not very confident as to what would exactly happen after this global upset. This COVID 19 pandemic is considered to be the biggest global disaster after the World War II. If you give it some time, then within a few months, the asking price will get back to where it was before the lockdown. It is also important to get a House insurance done whenever you buy a property.

But the real estate agents are saying that there is a pent up demand of the property markets. There are a number of buyers who are interested to make an offer, but there is only a limited stock available. Therefore they will try to keep the prices to where they originally were. The buyers who are ready to make a commitment to buy the property by June, July would be expecting a discount. This is because they are expecting that the prices will drop between the months of July and December. They would therefore want something that would help them to compensate the risk that they are taking by buying the property now. They will ask for a discount of 20 percent, however, I believe that they will be happy with a discount somewhere between 5 to 10%. There are a number of insurance companies available. Make sure that you get your home insurance done from one of the best and the most reputed schools.

The supply after this will be maintained by the three D’s – Death, Divorce and Debt. After this all of these would rise. Then again by the month of October, the sellers will be joined by those people, who will appreciate the fact that just as the selling price of their property has gone down in comparison to the selling price during the months of January and February, they will also be able to buy properties at a lower rate.

This is why you should wait

There will be a number of buyers who will not get back to the market before the new year. Since most of you are worried about the prices, therefore, it is a good option to wait till the prices are more clear. This is something that will probably not be clear until next year. Getting your house insurance Ireland from a reputed company will also help you.

Make sure that you do not look like a person trying to take advantage of the situation

You will have to tell the seller that you have eaten up the capital during the lockdown. Therefore the mortgage does not seem to be very attractive for you as of now. You can move aside and let him look for someone else who is ready to pay what he has been looking for.

It is very important to remember here that you should not offer less. It is important for you to understand that no one wants to feel that he is being taken advantage off. In most cases, you will see the buyer asking you how much you can afford. It is here again that the process of your negotiation starts all over again. When you are getting a house insurance done, it is important that you get it from the best home insurance Ireland.