By Jean Murphy
Daily Herald correspondent — March 27, 2020
Local real estate agents, like everyone else around the world, are confronting a new reality these days and seeking new ways to conduct their business.
Jim Regan of RE/MAX Suburban in Mount Prospect wasn’t noting many changes in his business at first, but that has changed. He no longer sees Realtors doing open houses, although some are still scheduling showings. And, of course, no one is shaking hands.
In addition, his usual “home stager” who arranges furniture in listed homes to present them in the best possible light, told him she is no longer carrying out in-person staging appointments. Those who want her expertise need to send her photos or converse with her using video chat apps on their smartphones.
Regan also ran into an instance in which buyers wanted to make an offer on an elderly woman’s home and found that her plans to move into an assisted living facility were being postponed because she felt safer remaining in her single-family home.
“My thought is that a house that’s been vacant for at least 14 days might be more appealing to a buyer who is venturing out to look at property,” he said. “I think a lot of sellers who occupy their homes might be nervous about showings — and (potential) buyers going into an occupied home would also be concerned.”
One of the things that may happen when we return to “business as usual,” whatever that is, could be that we will see a lot of pent-up demand, coupled with fewer new listings having come on the market in the meantime because of the virus delaying sellers’ plans. That will result in more of a seller’s market,” Regan believes.
“With the low, long-term interest rates we currently have for mortgages (3.5% to 4%), it is certainly a phenomenal time to buy and first-time buyers naturally want to take advantage of those rates,” Regan said.
Stephanie Szigetvari, vice president of brokerage services for @properties and designated managing broker for the @properties’ Arlington Heights office, agreed that their business dropped dramatically between the second and third weekends of March.
“We’ve definitely seen a change since the previous week,” she said. “Homes are still going under contract, some with multiple offers, because there continues to be a segment of people who need to sell and/or purchase a home at this time.”
But more and more Realtors are using virtual tours and live Facebook tours to conduct “showings” of the property first, before physically showing the home, Szigetvari said. This helps determine if a buyer really has an interest in the property, without putting the seller through the process of protecting and safeguarding their family and home.
Sellers are also requesting that the number of potential buyers touring a house be limited to only one, plus their agent, as a way to minimize exposure.
There has also been an uptick this past week of current deals being canceled because the buyer has either lost a job or worries that they will soon, she added.
The majority of deals ready to close are successfully closing, with the help of title companies and mortgage lenders allowing digital signing of documents and curbside closing capabilities, Szigetvari said.
But realty agents are having to adjust to the new reality. For instance, at a recent closing, a Realtor in Szigetvari’s office discovered she couldn’t get routine things as quickly as usual. She stopped by a village hall to get the usual transfer stamp needed at closings, only to find the facility closed because of the virus. So, Realtors are having to pivot around issues like that, which are popping up, she said.
“The COVID-19 virus is also causing all of us in the business to try to move things along quicker so that the transactions actually take place,” she said.
“Homes have been steadily appreciating, but the prices are not at all inflated, so people can get nice homes at a good value with great interest rates. It is a perfect storm for buyers, so we don’t want the virus to interfere, if possible,” Szigetvari added.
Tom Zander, managing broker for the Mount Prospect office of Picket Fence Realty, has also seen his office’s number of showings reduced, but said some showings are still happening and one of his agents received multiple offers last Sunday on one of his properties.
“There are some sellers who do not want showings until we know more, yet others are fine with showings continuing. Appraisals and closings are also happening. Title companies, where many closings take place, have tightened restrictions allowing only the key participants in the building, and some are even closing remotely, using new tools like ‘DocuSign,’ which allows buyers and sellers to sign documents through their cellphones without meeting in person. This is a learning curve for everyone. When this is over, we wouldn’t be surprised if many of our everyday procedures are permanently changed as a result of the new streamlined practices of the pandemic,” Zander said.
Last Wednesday, RE/MAX brokers and agents all over the country received an email message and video from Adam Contos, CEO.
“There is no such thing as ‘business as usual’ right now. Reactions vary, circumstances vary by location, and emotions are high — even within our own network,” he said. “Some of you are ready to fight and push on, while others may need time to accept the current reality. And that’s OK. Your health — both physical and mental — and the health of our communities are the most important things to us. I urge everyone to make health your No. 1 priority right now.
“We will continue to adapt and communicate changes in our operations and resources — all to help you help your communities,” he continued. “This is a global emergency, and everyone must take it seriously.”
For instance, RE/MAX recommends no one hold open houses for the foreseeable future and it is planning to launch a weekly webinar that gives guidance and action items to help agents and brokers navigate their business during uncertain times.
“I just want to remind everyone how resilient the U.S. housing market is, even in the most difficult times,” Contos added. “From here, I ask that we (virtually) come together as RE/MAX, lift each other up, continue to help people — including our buyers and sellers — and do all we can to share kindness, gratitude and selflessness in our local communities. We are all in this together.”
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