Spring was right around the corner. Many sellers were hard at work getting their homes ready for market and looking forward to a heathy selling season. By the first week of March, it became very clear, that the Spring market was going to be anything but normal. So, if you have to sell or buy (or both) in 2020, how is this pandemic going to affect you?
Let's start with what we know.
Buyers that need to purchase, are still purchasing. Interest rates are at incredibly low levels and buyers who must purchase are still looking for that perfect home. Buyers who have more time may defer their activities.
Sellers who need to sell, are still selling. This includes investors and developers, as well as homeowners who need to relocate or otherwise don't have a choice. Many sellers who can defer their sale have chosen to sit this out, choosing not to have traffic through their homes. Occupied investment properties are also a challenge to sell as tenants are concerned that showings pose a contamination hazard.
Traffic is down, listing volume and showings are down, and so are interest rates. Truly unprecedented. The long term impact of the the pandemic on the market remains to be seen. Unemployment, at least in the short term, is up significantly. Governments are taking significant actions to cope with the short term hardships faced by many Americans as their incomes are disrupted. It is likely that the Pandemic will have a cooling effect on the market, and provide opportunity for smart buyers to purchase in a less competitive environments and secure mortgages with ultra low interest rates.
Advice on how to stay safe while on the market. The Beals Group at Exit Strategy Realty is following guidance from the CDC and from local and state governments to help keep our showings safe. As of publication our policy is as follows:
For properties that are owner occupied. Our advice is to consider holding cancelling showings until we have a clear understanding that the virus' spread has been contained. This may mean postponing showings for an extended period. If seller's want their properties shown, we are advising that the seller leave all lights on and doors open to minimize contact between the home and visitors. We are advising buyers and their agents to please refrain from visiting if they or anyone they are in close contact has symptoms. When visitors enter a home, we are asking them to wear shoe covers and limit contact with the home during showings. We are advising sellers to disinfect handrails after showings. In order to limits showings to only interested buyers, we are in the process of producing video walk throughs which allow purchaser's to experience the home prior to viewing. This way only truly interested buyers will request a showing.
For properties that are tenant occupied, our advice is to postpone showings if tenants are not comfortable with visitors. We will be preparing video walk throughs of these properties as the tenants allow. Investor buyers may often get sufficient texture from these videos to make a decision to purchase. This may allow transactions to progress during the crisis.
For vacant properties, we are routinely sanitizing high touch surfaces such as doornobs and light switches, and setting up hand washing stations equipped with soap, paper towels and a waste bins to give visitors a hand washing opportunity. These precautions will allow for showings and encourage safe behavior.
If a government agency issues a shelter in place policy, we are encouraging our sellers to suspend ALL showings to be in compliance with government policy.
Properties currently under contract are continuing to close, with precautions being taken for final walk-throughs & inspections. We are utilizing remote services whenever possible such as electronic documents and Zoom meetings. Title companies are working on remote closing processes to decrease person to person contact and eliminate the need to visit public places like title companies.
It's safe to say that the spring market will be delayed significantly, likely 60 days+, depending on how long it takes for the viruses spread to be slowed and stopped. It is our opinion that we need to take a complete and thorough pause, and contain this virus as soon as possible. The sooner the virus is contained, the sooner we can begin to enjoy our communities and neighborhoods again.
We are continuing to monitor the advice of the CDC and governments and will be updating our policies accordingly. It is our mission to put our clients and our community first. The health and safety of all our neighbors is our first priority.
I am happy to discuss your questions anytime. Our office has been holding Zoom conference calls with clients in place of personal meetings to talk through strategies and personal concerns. Please reach out to me if I can help at 312-772-3257. Thank you and be well!
