The new coronavirus (COVID-19) pandemic has impacted many aspects of the economy. Whether you are a home seller or prospective buyer, knowing how the COVID-19 has influenced recent trends should guide your future decisions. Here is a look at the current housing market and why you should seek help from an attorney familiar with real estate law. 

Real Estate Market Trends to Know About

Due to social distancing and quarantining guidelines during COVID-19, many families work and take classes from home. This has fueled the housing market, with people looking for comfortable dwellings in suburbs and lenders lowering mortgage rates to meet the demand for affordable housing. Buyers benefit by paying less to borrow a mortgage and can slightly increase their price range for properties, too, because a smaller amount of their monthly mortgage payment will go to interest.

The surge in demand has caused a decrease in supply, prompting the median price of existing home sales to rise by 17.2% in 2021 when compared to 2020. As options are limited, a buyer should forgo searching for a property with a pool, wine cellar, and other luxuries. Instead, choose a home with enough bedrooms and bathrooms for the family. 

Expanding the search to outlying neighborhoods could increase the odds of finding a gem, too, as there might be less competition from other buyers in less popular locations. The low supply and high demand mean sellers could increase their asking price. 

Why Hire An Attorney?

Uncertainty during COVID-19 could affect when a sale is finalized. It could be challenging to get a hold of notaries, gather everyone to sign documents, and tend to other closing process steps. The closing date is written in the purchase agreement, at which time the property is transferred to the new owner. If this deadline isn't met, either party could have the legal right to back out of the deal without consequences. 

A buyer might do this if their financing fell through. Unearthing issues during the home inspection and not including contingencies for the seller to cover repairs are also reasons a buyer might back out. If they've decided to wait for a higher offer from someone else, a seller could use delays to terminate a deal. 

Real estate attorneys help buyers and sellers avoid these concerns. They'll add a coronavirus addendum to the existing purchase agreement. This agreement between the seller and buyer specifies that each party will contact the other if a COVID-19 related event, such as hospitalization, occurs that could delay the closing. The addendum allows for an extension and should include a plan for how the situation should be resolved.

For help buying or selling a home in the Wood County, WI, area, contact Wisconsin Rapids-based Luke A. Weiland, Attorney at Law. Admitted to the Wisconsin Bar Association in 2007, the attorney will add addendums and contingencies to contracts and assist with other aspects of your real estate transaction. View their services online and call (715) 422-6808 to discuss your needs.