Dipping your toes in the real estate market — whether for the first or dozenth time — is a scary feat. Doing so as a single mother — while juggling a herd of children during these unprecedented times — might seem impossible.
Yet, just as the rest of the world quickly adapted to the COVID-19 pandemic, so did the real estate market. Not only are some of the changes advantageous to single mothers who don’t have much free time on their hands, but there are also plenty of financial gains home buyers and sellers can take advantage of in the new year.
If you’re a single mother in desperate need of an upgrade now that the pandemic has forced you and your children to stay home, you’ll be glad to know this endeavor is still definitely doable during the next year.
The appeal of buying a home in 2021
So you want to buy a home but aren’t sure if you can handle the down payment? You’re not alone. In fact, the majority of potential buyers cite the down payment as the most difficult hurdle to overcome in order to buy property.
Well, there’s some good news. The shift in presidential leadership has now placed a spotlight on Biden’s new affordable housing plan, which includes a $15,000 down payment tax credit — payable at any time — for first-time buyers. With any luck, this plan should alleviate some of the pains of the home buying process.
As we all know, the down payment isn’t the only hurdle one faces in the housing industry. There’s also the challenge of finding a favorable interest rate.
Mortgage lenders have upped the qualifications for taking out a loan, but so long as you have good credit and enough savings, securing a favorable interest rate shouldn’t be a problem.
Especially now. Mortgage rates dropped significantly in 2020, hitting a record low in December. These low rates are expected to rise in 2021, but slowly. In fact, 97% of top real estate agents believe low mortgage rates will drive buyer demand in 2021.
The appeal of selling in 2021
The good news for single mothers? Most of your real estate endeavors can be taken care of virtually. This is huge news for all sellers, as the virus is a top concern for about 30% of sellers who are currently hesitant to join the market.
Single mothers have neither the time nor patience to let strangers into their home for a showing or open house — especially not with a deadly virus in our midst. Thanks to new digital tools, this is no longer necessary. That means you can cancel the baby sitters and handle all your selling enevours from the comfort of home.
However, the most enticing perk of selling in 2021? The seller’s market. The housing market was struck with a surge of buyer demand. As noted, it’s a very favorable time to buy thanks to the low interest rates; not to mention, many homeowners are on the lookout for more space thanks to the pandemic.
The lack of supply to meet demand means your home will stand out once you finally put up that ‘For Sale’ sign. So long as you have a reliable real estate agent on your side, you’ll likely sell both profitably and quickly.