Across the nation, stores are shuttered. Restaurants are largely on life support. Realtors, for the most part, like millions of Americans, are working from the safety of home. But with the industry deemed an essential business, is there any such thing as business as usual?
“There are always sellers who need to sell and buyers who need to buy,” noted Jennifer Ames, License Partner of Engel & Völkers Chicago and founder and president of Ames Group Chicago. “We are still doing business. We’re just doing it differently.”
In Chicago, as in most areas of the country, open houses are out for the foreseeable future, and a home may be shown either one-on-one or to the decision makers only. Agents are masked, typically gloved, and under strict obligation to follow stringent sanitation procedures.
Virtual home tours are becoming the norm, a boon to the most successful agents, a roadblock for those who have not yet mastered the technology – and with inventory low to begin with, escrows are crashing and sellers are putting listings on hold until it’s safe to have strangers in their home.
“We are in uncharted waters,” said Ames, who put three units under contract last week and is negotiating a single-family sale.
“Title companies and notaries are working virtually,” she said, “and people are signing documents electronically. Inspectors and appraisers are doing drive-by or virtual home tours, and with mortgage rates at historic lows, there are buyers – especially in the low to mid-price ranges – who are ready to make a move.”
Veteran agent Kim Gellatly agrees. A team leader with Berkshire Hathaway HomeServices Northwest Properties in Portland, Ore., Gellatly said houses in the $400,000 range are still moving relatively quickly despite the new normal in the way homes are shown and appraised.
“There’s not a lot of movement in the higher price ranges,” she said. “But we’ve been using 3D home tours and virtual showings with some success for the last few years. Combined with social media postings, electronic signings, and the long-standing relationships we have with our client base, we are still staying busy.”
In fact, Gellatly reported, in the last seven days– the first full week since the ‘shelter in place’ mandate took effect in Oregon – her team generated 687 new listings and sold 511 properties in three major Oregon counties.
“It will slow down, we know that” she said. “But it will also come back when this is over – and we’re learning new techniques we will probably keep using, because they save so much time and energy.”
In Colorado, where restrictions on showing property are especially stringent, according to Joe Clement, broker/owner, RE/MAX Properties, Colorado Springs, “we’ve created a whole new protocol. But we are very much still open for business.”
In a city with a population of about 700,000, Clement said, his office opened 288 new contracts in March, as opposed to the 355 contracts they opened in March a year ago – split between 65% in buyer sides and 35% in listing sides.
While most of those transactions are for homes in the low- to mid-price range, one was on a $915,000 home sold in a totally virtual transaction.
“The buyers were relocating from another state, needed to buy a home quickly, and selected this one after the agent guided them through several virtual home tours,” Clement said.
To compete in today’s environment, said Mark Stark, broker/owner of Berkshire Hathaway HomeServices Nevada Properties in Las Vegas, agents will need to market a lot more creatively and be very up to date on the best financial options for their clients.
“As more business goes online,” he said, “many of those who need lender money will not be able to find it. Our CFO and attorney are doing an agent webinar today on the best ways to access lender funds.”
Stark, whose company is the fourth largest Berkshire Hathaway HomeServices franchise in the network, anticipates a substantial slowdown.
“This past March came in as the best month ever in the history of our firm,” he said. “But despite our best efforts and the magic of technology, I expect the next three months, and maybe into July, to be among the worst we’ve ever had.”
Others are cautiously optimistic.
“We are taking it one day at a time,” said Gellatly, “and reaching out to let people know we are here to help them safely and efficiently if they need to buy or sell. Lots of smart people are working hard to find ways to end this pandemic. Until then, we’ll do our best to hunker down, follow the guidelines, and do the best we can to stay productive.”
