Page 78 - Q&A

Buying or selling a house during lockdown?

July 2020
“I was just about to put our house in the market and look for a new place when
the Covid-19 pandemic hit. I’m very unsure if now is the time to buy and sell.
What do you think?”

As South Africa still finds itself in the midst of the Covid-19 pandemic, your
question is most certainly relevant to most buyers and sellers, even more so as
parties ponder the safety issues surrounding buying or selling a house during
the pandemic.
That said, in principle where under the hard lockdown it was not possible to
buy/sell a house, under the current lockdown regulations it is most certainly
possible to do so, provided all parties adhere to the health and safety regulations
in force to protect themselves and stop the spread of the virus.
Property When considering the pros and cons of buying or selling a house in these
times, it does not change the fact that it remains a very personal decision to
be made and is influenced by your needs, finances and the current market
position. However, a few pros and cons can be set out which can complement
your personal views:

For the seller:
• Definitely a difficult time to be selling, as it is currently more a buyer’s
market. However, pricing, location and quality of your home can swing
interest your way.
• Negotiations may be harder as buyers are more spoilt for choice and can
negotiate harder.
• With people viewing houses more online and visiting houses where there
is more real interest, you may find a quality exhibition of your house online
can attract real interest and reduce the hassle of opportunistic browsers.
• If you are unsure of your financial position or your ability to secure a new
home, it could be prudent to wait a while before trying to sell.
For the buyer:
• Your financial position must be sound, taking into account any uncertainty
in your employment as well as your ability to qualify for and cover a
mortgage bond.
• If you can buy now, the buyers market does provide room for negotiating a
good deal with a seller.
• Interest rates are quite low right now and this could count in your favour.

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