Since the coronavirus pandemic started, conversations have been inundated with “did you hear that…” followed by some information from a vague source. Unfortunately, most of these things are hearsay and only spread misinformation.
It’s understandable, though, how these things spread. The novel coronavirus or COVID-19 pandemic is something wholly new, and people are scared. As a result, people cling to every bit of information they gather, whether it’s true or not. Some such myths and misconceptions are about real estate.
Below, we discuss—and debunk—some of the most common myths about real estate that have popped up amid the COVID-19 pandemic.
1. It’s the wrong time to sell your home.
A lot of home sellers who planned on putting their house and land up for sale as a package this year have had to postpone this move because they believe it’s not a good time to sell. That is a valid concern, as people don’t want to spend on listing their house only to not get as much as their property is worth in return or not get anything at all. What’s more, a lot of home buyers are out of jobs, so it’s easy to assume that there might not be anyone willing to spend a considerable chunk of their money on real estate right now.
However, this isn’t true. For one, declines in property values have been mild, according to Eliza Owen, CoreLogic’s Head of Research. And because home sellers think it’s a bad time to list their property, there’s less competition among sellers on the market.
2. No one is buying a home.
Another myth surrounding real estate is that no one is buying a home, which is also why sellers don’t want to put their property up for sale. Some reasons this myth exists are stated above, such as job loss and uncertainty.
But, as mentioned earlier, property prices have been slightly declining. Homebuyers with a steady stream of income may take this opportunity to purchase before the economy stabilises and house pieces go up again. And with increased competition among buyers because of limited sellers, it can result in a bidding war, which is right for you if you’re selling.
3. You can’t see a home in person before buying.
Sellers who are willing to list their homes, as well as buyers who want to look at listings amid the pandemic, are sometimes deterred by social distancing. Both don’t want to risk contracting the virus by doing face-to-face inspections and open homes.
While property inspections in most states in Australia have been restricted to only online, buyers can still arrange a private visit if they’ve decided to buy a property. So, as long as sellers set up their virtual tours and walk-throughs appropriately, they can secure a sale safely.
The myths and misconceptions surrounding real estate at the time of a pandemic usually don’t stand up to scrutiny. So before believing them and potentially sabotaging your own plans to buy or sell a property, do your research first.