Buying Lake Tahoe real estate in the midst of the Coronavirus has changed the way we operate. If you are a buyer, you likely know what we are talking about as it was business as usual one day and then the next, things were either put on pause or canceled. However, with Lake Tahoe real estate being considered an essential business, we were given the green light to operate, just under very different protocols. Purchasing homes for sale in Lake Tahoe is a big investment, so you may be feeling a bit of uncertainty during what is likely one of the biggest transactions of your life. If you are still in a position to purchase with confidence, you may be wondering how the negotiation process will go. While your Lake Tahoe Realtor will be a valuable resource for this step and will guide you along the way, here is some insight on how to go from pending to closed on your dream property in Tahoe.
First, let’s be clear that going the lowball route is not recommended. You may think we are back in 2008 and that sellers are desperate, but that is simply not the case right now. The United States real estate market went into this in a seller’s market, which means low inventory. Some sellers have temporarily pulled their homes for sale in Lake Tahoe from the market, which hasn’t helped supply at all. While some buyers have chosen to hit pause, there are still folks serious about purchasing. Additionally, banks have rolled out various forbearance programs so that sellers are not in immediate danger of losing their home if they can’t pay their mortgage due to Covid-19. Every situation is different and there are some sellers who may need to move due to relocation and are more apt to negotiate. In that particular scenario, your Lake Tahoe Realtor will help you craft an offer that is a little lower than market value but won’t offend the owners in the process.
So, your offer was accepted, but know that closings are taking longer than usual. There are delays as appraisers, maintenance contractors and home inspectors adjust their guidelines to abide by the changing health and safety concerns. While they are adapting as best they can, it is slowing down the process. Some professionals are writing extensions into the contract and adding additional contingencies as well, which gives buyers more peace of mind. Especially for those that are purchasing homes for sale in Lake Tahoe sight unseen.
Financing is another issue that has made things challenging in the current climate. You should absolutely be pre-approved regardless of what is happening in the world, but right now is especially important. Sellers do not want to open up their homes to folks that aren’t serious. Looking at real estate in Lake Tahoe when you are not pre-approved not only wastes everyone’s time, but it also puts other people at risk of contracting the virus, such as the sellers and the involved Realtors. Banks are tightening standards, terms and conditions and giving out less loans to offset delinquencies. There are required cash reserves and credit scores which has caused some buyers finding it difficult to secure a loan that they would have otherwise been able to get just two months ago. If a buyer is able to qualify, they should have no issues successfully closing on a property, just make sure your chosen lender is in touch with the constant changing industry standards and guidelines and are communicating with you along the way.
For more information on how buying real estate in Lake Tahoe has changed, feel free to give us a call. We would be happy to help!