The Covid-19 pandemic disrupted virtually every aspect of commerce and life, and the residential real estate market was no exception. From a complete crash when the pandemic first hit to headline-grabbing prices last year, the pandemic had many impacts on the housing market. Here are some of the effects that are sure to stay for post-pandemic sellers.

Post-Pandemic Sellers: What’s Changed

Higher Home Prices

Home prices are unlikely to escalate like they did last year, but last year’s sales should provide a foundation that keeps home prices higher. 

When houses are listed, their prices are largely pulled from comparable sales in the local market. Many of those sales occurred last year or early this year — during or after the boom. Comps will now reflect those higher prices, and listing prices will continue to be substantially more than they were before the pandemic.

More Complex Offers

At the peak of last year’s housing market, homebuyers were amending their offers with many different clauses. They sometimes used any or all of these tactics:

• Waive any home inspection
• Offer above the asking price
• Add an escalation clause
• Make a higher deposit
• Add an appraisal contingency
• Pay with cash

While these were always options before the pandemic, they were rarely used even in competitive real estate markets. Because homebuyers used them last year, however, many buyers are now much more familiar with the concepts. A greater number of offers will continue to include clauses such as these.

Virtual Home Showings

Both homebuyers and home sellers were nervous to show houses at the height of the pandemic and couldn’t during periods of lockdown. As with many aspects of in-person work and exchange, technology came to the rescue.

Virtual home showings became the norm for some time, and many home sellers are continuing to have virtual showings. Even though homebuyers are more apt to want an in-person showing now, they often still appreciate seeing a house virtually at first.

With the increased prevalence of virtual home showings, it’s important for home sellers to work with real estate agents who know how to compose an engaging online visual presentation.

Increased Value for Spare Rooms

The general shift toward remote work has many homebuyers looking for a place that has space for a home office. A spare bedroom, study or den has always added value, but it does so even more now.

The demand for home offices should stay kept in mind when using comps. An extra room could add significant value above what houses that are just slightly smaller have gone for.

Online Signing and Payment

The remote shift has also changed the way paperwork and payment end up handled during home purchases. Almost all documents and payments can be completed online now, including everything from an initial escrow payment to the final wire transfer. Most closings are still finalized in person, but they don’t necessarily have to be.

Get Help With Escrow Payments

For more information on how to navigate real estate’s post-pandemic landscape, contact the professionals here at Escrow Hub. We offer comprehensive escrow services throughout the Los Angeles, Ventura, San Bernardino and Orange County areas.