Why Real Estate & Related Services are Essential Businesses
Although it’s not hurricane season and there isn’t an imminent threat from a storm, we’re all hearing references to essential and non-essential businesses. Previously we may have not given a second thought to why one business is essential and another is non-essential. With what is going on in the world today, it’s easy to understand why some industries, like healthcare, grocery stores, and home repair companies are, no doubt, essential. However, some still have questions about other industries that are also considered essential, such as real estate and related businesses like appraisers, loan officers, and home inspectors. Here are a few reasons these businesses are essential and will continue to be throughout this time.
People Need Homes
There are many reasons people buy a new home. Sometimes it’s a factor of convenience, such as when they would like to be closer to a place of work. Other times, it’s a necessity due to storm damage or another type of damage which has left a home uninhabitable. In family situations, it could be due to divorce or health issues.
If you’re wondering why a move may sometimes be absolutely necessary, part of the reason could be that it is not always simple or feasible to wait until circumstances resolve. Let’s say a tenant is leasing an apartment and the lease stated they had to give at least 90 days’ notice prior to leaving. If this tenant planned on leaving by the end of April, they were required to state their intent to move in late January, before the challenges we are facing in April were known. Now, however, if the tenant doesn’t leave, the new tenants who have already signed a lease to rent the property beginning in early May will have nowhere to go. This is just one example of why a move may not be able to wait for this to be over.
Let’s assume you are working with a builder on a new home; the builder is working diligently to finish it. Once it’s complete, they expect to close on the home so they can pay the subcontractors and so they can pay off the loan they took out to finance the construction. In order to close, your lender will still require all the pre-closing items, including the report from your home inspectors. If the closing were delayed, many businesses and individuals may not be paid in a timely manner.
Who is Involved in Most Real Estate Transactions?
There are many different types of businesses involved in a single real estate transaction. Some we may never personally interact with throughout the process, like those who handle the title search, underwriter approval, and provide payoff for the existing loan on the property. You may be more familiar with the people you do see or interact with including the loan officers, appraisers, home inspectors, and notary at the closing itself.
A home is considered one of life’s necessities, along with food, clothing and water, which is why real estate and associated industries have been classified essential during this time. If you’re buying or selling a home and need the assistance of home inspectors, turn to Pillar To Post. We’re taking every precaution during this time while still performing our job to the highest degree of professionalism. Call us today at (727) 934-8339 to schedule your home inspection or to ask any questions you may have.