Unfortunately, no one can predict what the full impact of COVID-19 will be on the U.S. housing market. Using some historical and current market data, we’ve come up with some practical advice to get you through the homebuying process:

Forget the Idea of Finding a Deal

Even though it’s become much more difficult to schedule in-person showings, homes are still being sold during the pandemic. This, along with a lack of inventory, has driven prices way up and there are no signs of the market changing anytime soon. So, if you were thinking that there might be some good deals out there due to COVID-19, think again.

Instead, you are highly likely to find yourself bidding against other buyers on any offers you put in.

Make Sure the Time is Right for You to Buy

Once you find a home you like, make sure you’re ready to move quickly. You may need to make an offer even without seeing the house in-person. Many Realtors are relying on video and virtual home tours to move the process along because private showings and Open Houses are limited due to health risks and the need for social distancing.

The pandemic has pushed what would typically be a springtime buying frenzy forward into the late summer months or fall. Fortunately, pending sales are beginning to dip, so you have some breathing room. You may want to wait to find out whether this continues and if it impacts prices in your area.

Don’t Get Carried Away Trying to Win a Bidding War

Because there is so much competition among buyers, you might be tempted to forego some typical contingencies to entice the seller to accept your offer. This might be the right strategy if you’re an investor making an all-cash offer, but if not, you still need to perform the usual due diligence.

Traditional contingencies usually include the ability to cancel the deal if your home loan falls through, the appraisal shows the home is worth less than your offer, the inspection uncovers the need for expensive repairs, the title report reveals disputes on ownership of the home or some problematic liens, or that you can’t sell your current home before you would need to close on this one.

Be Prepared for Stricter Requirements from Lenders

Right now, most lenders are frightened by how many mortgage holders are currently in forbearance, so you would be taking a big risk by waiving the loan contingency. To counter their fear of approving a loan to a buyer who would ultimately default, mortgage lenders are forcing applicants to jump through more hoops than usual.

Accept the fact that there will be a lot more paperwork to fill out to substantiate your ability to keep up with your mortgage payments. Put as much money down as you can afford to reduce the size of your loan and the risk that your application will be denied. Offers that come with a higher down payment make a better impression on sellers as well.

Find Out if You Can Close Remotely

Due to the pandemic more law firms and title companies have started to use eClosing and other digital tools. This provides buyers and sellers a convenient and safe way to complete real estate transactions. Many states now have remote online notarization laws on the books, which means that a completely digital and remote closing may be possible for you. Approximately half the states in the U.S. currently allow for this.