Even though the pandemic has led to an economic crisis which has caused the mortgage rates to drop continuously over the past few months, it is currently a seller’s market. If the rates had dropped without the other effects of the pandemic, such as a halt or interruption to almost all construction plans, or the obvious fear of contracting the virus, or general uncertainty then the market would not be so heavily in favor of sellers right now.
Most people, unless it is for financial reasons, want to sell their home in order to upgrade or move, but when there is so much competition on the side of the buyers the motivation to compete drops and many may choose to stay where they are and try to refinance. Those looking to move may hold off since more than likely they are working from home and stand to remain where they are for a while longer.
Buyers are bidding at rates much higher than they otherwise would or much higher than the property might be worth at this point, possibly because they would still pay less overtime considering the low mortgage rates or because the increased demand will lead to increased property prices in the future.
Some buyers are going as far as waiving inspection requirements and contingencies and potentially making unwise decisions. If they are working with a good real estate professional then they could be making a calculated decision that would benefit them in the long run (www.aminvali.com). However, not all real estate agents are built the same, if the agent is just after a big pay day and not looking out for the best interest of the client, then they could be turning a blind eye to things they should, on a moral and ethical basis, advise them against. A good agent doesn’t allow their client to make an unreasonably high bid or a hasty decision without fully inspecting the property.
The property may be worth a higher bid or the decision to move fast but it is the responsibility of the agent to do his/her due diligence before those decisions are made. Transparent conversations, full and honest communication, and in-depth research are very important for a successful client/agent relationship.
This type of relationship is especially important for a potential buyer during such an unevenly skewed seller’s market, and while mortgage rates are historically low.
Civil Engineer, MBA, Real Estate Agent
Cell phone: +1 (949)220-1000
Phone : +1(310)925-3878
Web : www.aminvali.com
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Realtor in Zutila Inc.