As we enter a new spring market in housing, everyone is adjusting to a “new normal” for an uncertain period of time. Ohio Governor DeWine has declared real estate an essential business that remains open. There are many life situations where people need to buy and sell property for their family’s needs, even amid a pandemic. However, the way in which business is conducted and the time that it takes to get through a purchase transaction certainly is being affected by the larger landscape of social distancing and shelter-in-place rules. If you’re in a circumstance where buying or selling must happen, here’s what to expect in real estate right now.
Low Inventory
Inventory for move-in-ready homes was already slim before the pandemic. Expect the choices to be slimmer. Some sellers are taking their homes off the market or waiting for the crisis to wane before opening up their home to the public. While this will in turn cause many buyers to delay their search, it also means that serious buyers could have less competition for available homes. The opposite could also occur in some markets. If inventory has become so low in a desirable area, a particular house could garner more buyer interest than if there were more selling competition.
Just because a home owner has taken their home off market, that doesn’t mean the interest to sell is gone. They may simply be delaying the move by a few months. If you fell in love with a home that went off market, have your agent keep it on radar.
Virtual Tours and More Showing Rules
Realtors in the Cincinnati area are being advised not to hold open houses because of social distancing guidelines recommended by local and national health advisors. Of course, buyers will continue to utilize online listings to find their top contenders. Savvy Realtors representing sellers will have prepared virtual tours for their clients, meaning that buyers can view more than still images from the comfort of home and an internet connection. This allows both Realtor and clients to avoid going into multiple houses to narrow down top choices. Of course, few buyers want to buy without an in-person walk-through, which is still possible by appointment. Expect home owners to have a set of COVID-cautious rules for showings – perhaps wearing shoe covers or no shoes, and being asked not to handle door knobs and surfaces. Don’t be surprised if your Realtor holds more phone or video-chat meetings with you and asks to maintain the recommended 6-foot distance when viewing homes.
Expect Financing to Take Longer
With mortgage rates remaining low amidst high volatility, there are a slew of refinancing applicants flooding the business. That means buyers need to focus on having all their paperwork in order and should expect a longer wait time for loan processing and approval. And because of the volatility in rates, buyers should remain flexible on what rate to accept.
Read All COVID-19-Related Addenda with Caution
It’s possible that either party may use some type of contract addendum related to the pandemic that could extend or terminate the contract in a specific number of days. Make sure that the terms are well understood (get an attorney if needed) before agreeing to something that is based on events beyond anyone’s control.
Title Companies Still Perform Closings in Person
In Ohio, real estate closings are typically not set up for remote transaction. When you close on a home, you will have to meet in person with the title agent and signing party. Most title companies are exercising increased caution with sanitized rooms, pens, and space to accommodate distance.
Real Estate Term of the Week
Virtual Tour: A 360-degree image of a particular location. It includes a sequence of videos or still images so that a person can view an entire room, series of rooms, or area without being physically present. Some virtual tours include music, sound effects, and narration that describes features of interest.