The soothsayer in Shakespeare's Julius Caesar issued his famous warning "Beware the Ides of March." Who knew that in 2020, around the middle of March, the world, as we knew it, would force such dramatic changes on us from the Coronavirus.
In America, it has brought our economy to its knees as we sheltered in place for over four months. During this time, changes have affected our lives and many of those changes could be permanent.
Previously, smaller homes were becoming the trend for not only efficiency but upkeep so owners would have more time to do things including travel. Now, travel is minimal and our world, in some respects, is reduced to our home.
For families with children, their home has become a school. With so many people working from home, it has become our office or store or studio. If there is more than one working adult in a home, it needs to have space for each party to work. The home fitness industry is experiencing record sales in exercise equipment so the home can become a gym.
Since we're all spending more time at home, it is also the place to recreate. We're cooking more; a larger kitchen and dining area would be nice. We want to enjoy the yard, garden, pool or balcony and our current home may not even have them or we'd like to upgrade.
People are wanting and needing more space to do all of these things at home. Many experts are anticipating that these changes we thought were temporary may be part of the new normal even after a vaccine and cure have been discovered.
If you have had any of these thoughts and would like to know more about how to buy or sell a home in our current market, we would love to tell you about the many options available while being responsible to stay safe.
Whether you like to or not, buying and selling a home involves negotiation at all stages of the process. It is not like the retail world where once you decide to purchase, you pay the price. It is easily the most expensive purchase or sale that most people experience and emotions get involved that could affect the negotiations adversely.
The word "home" by itself conjures up emotions and selling a home you've lived in for a while could even complicate things more. A real estate professional can separate their emotions from the process to be able to help the one they are representing.
The price of the home, the type of financing and concessions, closing costs, personal property, closing dates and possession are just a few of the many things that can be negotiated in a contract. Since the seller wants to get the most for their house and the buyer wants to pay the least, their objectives are diametrically opposed.
Even after the contract is signed, removing the contingencies can cause considerable negotiations. The appraisal, the inspections or the repairs could be a source of reevaluating the terms and provisions of the contract.
Negotiating the sale or purchase of a home is a competition; for one person to get something, someone has to give something up. If you don't feel comfortable with this, it is important to work with an agent who can bring their skills to the table on your behalf. As your advocate, they can champion your position.
FICO, the company that standardized a credit scoring model to allow lenders to evaluate a person's ability to repay a loan has now added a new tool called the FICO Resilience Index. This measurement can be used to determine a consumer's ability to withstand uncertain financial times.
It uses credit bureau information from before and after the Great Recession of 2007-2009. It operates on a scale of 1 to 99 with lower index ratings indicating more resilience to fare financial turmoil. This index will not replace the credit score but be used together with it to evaluate the risk.
Higher resilient consumers are expected to have had fewer credit inquiries during the last 12 months together with fewer active accounts with lower total balances. This would tend to indicate that the consumer has more experience in managing their credit.
It is expected that this tool will provide some consumers with lower credit scores to qualify based on this indication that they're capable of getting through tough financial times. A good credit score indicates they will meet their credit obligations during normal times. This new index factors in what may happen based on an economic downturn.