First and foremost, let me say that never have I known so many people so immediately and collectively affected by what is happening in the world around us as well as in our own backyards. Jobs disappeared over night for so many. And every socially distant interaction leaves us wondering, “Is this the one? Did I just get it while reaching for a box of ziti at the grocery store?” Anxiety is through the roof. We need compassion and kindness and community now more than ever. We also need some glimmer of hope that if we do everything right, things will get back to some semblance of “normal.”
I have received emails, phone calls, Facebook messages, and texts asking me what is happening in real estate. Am I still working? Are people still really out there looking at homes during the pandemic? Who is listing a home now of all times? In a nutshell: Yes. Cautiously. And those who need to.
The real estate industry was not shut down as part of Governor Brown’s Stay Home Save Lives order. Our industry lobbied that we could continue to perform our client duties while practicing the necessary social distancing that is at the core of the spirit and success of the order. And, real estate is an industry that is essential to the state’s economic recovery. So, what do buying and selling look like during a pandemic? Here is a rundown of how we are doing things with the DanniPDX Team at Premiere Property Group, LLC.
Selling Your Home
I think the biggest question on the minds of most sellers is, “Is this the right time to list my home?” The answer is not necessarily straight forward. We have been asking sellers to think reflectively of their situation, and we ask them: “If you took Covid-19 out of the equation entirely, would you be listing your home in this market now?” If, in the absence of the current pandemic, the answer is yes, then that points you in the direction of yes. I tend to have one follow up question, which is whether you have somewhere else you can stay while your home is listed. We have some work arounds if the answer is no.
Most of the in-person meetings we would attend previously are now almost all exclusively handled via Zoom conference calls, FaceTime, WhatsApp, etc. Listing appointments, “home tours,” staging consultations and advice are all done via call. Paperwork is handled electronically via DocuSign. Actual home staging is happening in person, but without the seller in the home. Our team, masked and gloved and practicing social distancing, handle the final preparations for the photo, 3D and video packages.
Home photographers and videographers are under strict instructions from our brokerage firm not to touch anything in the home. Not a single light switch. Not a single toilet seat accidentally left up. Not a single throw pillow that needs some extra zhuzhing. We provide our seller clients with a “to do” list of how to prep the home for the marketing sessions. We do one final walk through alone, but none of us is allowed in the home during the photo or video sessions. Let the creatives be creative. And let them practice their profession safely.
It is my strong recommendation that if you are listing your home now, you have somewhere else to live so that the home may remain vacant for showings. If you must remain in the home while it is listed on the market, I suggest listing it with instructions to write an offer “subject to interior inspection.” This is a common practice employed for tenant-occupied homes. Speaking of – our team has made a collective decision that we will not accept a listing for a tenant-occupied home with anything other than “subject to interior inspection” showing instructions. Now is not the time to require a tenant to allow strangers through their living quarters.
We provide a robust marketing package with dozens of extra photographs of the home and a 3D walk-through tour that augments the RMLS listing with a more comprehensive single-property website. We offer Facebook live video “virtual” open houses. We do everything we can to make the on-line marketing as complete a picture as possible so that a buyer can make an informed decision about your listing. Let’s be clear – buyers in this market are not tire kickers. Now is not the time for people to be touring 20 homes. Now is the time to examine all the on-line marketing available and narrow the field substantially before touring a very limited number of properties and zeroing in on “the one.”
The biggest difference right now in the market is the absence of open houses. But with the availability of 3D video tours, they are less necessary. I have always viewed open houses as a great way for folks who are not quite yet ready to buy, or folks who are “kicking tires” to get their kicks. There is nothing wrong with that. Sometimes touring the “right” house will turn a tire kicker in to a buyer on the spot. But given the importance of social distancing, hosting a live, in-person open house is not the right thing to do. In fact, it is expressly forbidden in our company’s guidelines, and even RMLS has turned off that feature in our listings database. That said, hosting a virtual open house “party” on Facebook or Instagram is definitely an option, and something we can do for our sellers.
Once an offer has been made and accepted. Many of the ensuing steps are not unlike what they were before the pandemic. The home will be inspected without the seller in the home. The home will be appraised (note that a LOT of appraisals are performed “drive by” style right now or being waived entirely). Closings are happening in many ways currently. Some people are choosing to have a mobile notary come to their home. Some people are meeting mobile notaries and pulling up in cars next to them. Some people are doing traditional signings at the Title company. Note, however, that neither the lender nor the Realtor are currently allowed to attend these signings. Social distancing is still the goal, so the fewer people at signing, the better for all.
Buying a Home
The steps have not changed. But the “how to” looks a bit different now. A buyer should get pre-approved before looking at property. While many Realtors may choose to let this step slide for a friend or a close referral in “regular times,” it is our professional responsibility not to bring someone through a home unless they have been qualified by a lender to purchase the home. Limiting a home’s exposure to people is essential right now during the pandemic.
We ask our clients to focus on properties that have strong marketing packages – lots of photos, video or 3D tour options. We want them to feel a connection with a home before putting it on their very, very short list.
For homes that are allowing tours, we have been meeting clients at the homes rather than driving all together. The Realtor will enter a home, turn on all lights, open a few cabinets and drawers, and then invite clients to enter, requesting that they touch absolutely nothing. It is a “contact-free” showing. When our clients are done, we then discuss the tour outside while properly distanced. Please note that we are doing home tours with decision makers only. We are asking that no children and of course no pets attend home tours.
Mortgage rates are great right now. For those whose employment has not been affected by the pandemic, it is a terrific time to buy. There are fewer homes, and fewer buyers in the market. Sellers are motivated. And buyers are serious. While lockbox entries have declined throughout the month of March 2020, we strongly believe that each actual opening is a much more likely sale. Each lockbox opening is a high value interaction with the property.
Reviewing our company records for the past month, it is safe to say that this is not a “bargain” market. When the pandemic first hit, there were a number of “lowball” offers thrown out that were summarily ignored or countered at full or near full price. This is not a fire sale happening right now. Afterall, we are still at under 2 months of inventory. The market is replete with engaged sellers and equally engaged buyers who are shopping during one of the most difficult times our nation has experienced in decades.
Once a buyer’s offer is accepted, the rest of the transaction is happening very similarly to before. There are home inspectors who are preferring to video call with a client after the inspection, though some will allow a client to arrive at the home inspection provided that any conversations take place outside at appropriate distances. Neither Realtor nor client is allowed inside the home during the home inspection.
Home repair professionals are as busy as ever. I would posit that there may be fewer “on the job” right now because timetables for repairs are surprisingly long right now. We are building in extra time in our transactions currently to allow for repairs and the difficulty of scheduling them.
Closings are happening exactly as described above in the Selling a House section.
Overall, professionalism, courtesy, and flexibility will go a long way to sealing a deal these days. So yes, real estate is continuing to happen every day in our market during the pandemic. It is happening carefully and thoughtfully. We continue to offer our professional services to people who find themselves in the position of needing to buy or sell during this unprecedented time. While none of us will get through this pandemic unscathed, helping one another and working together to help buyers and sellers achieve their respective goals remains our professional objective.
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If you are looking to buy or sell your home in the Portland area, we would love to work with you. If you are buying or selling outside the state of Oregon, let us recommend one of our most trusted Realtor colleagues elsewhere in the country.
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