This real estate market update is going to be a little different as we are in unprecedented times, dealing with COVID-19 and its impacts on all of us. It has left many struggling emotionally, physically and financially. For this report, I wanted to share with you the questions I have been receiving from my clients.
For some of my clients, they find themselves in a situation where they need to buy and have many questions about how to proceed next. Others are able to hold off and are choosing to wait until the summer when we hope the virus curve has flattened and gone down.
Are housing prices going down due to COVID-19?
In looking at April 2020 numbers so far, home prices are still going up. This is because of our exceptionally LOW SUPPLY of listings and the continued HIGH DEMAND is driving prices up and the market forward. Even if we doubled the number of listings we have available now, we would still be very much in a seller’s market. This alone is pushing prices upward.
Buyers today need to expect they will be competing with other buyers for the same property.
There are strategies to craft a winning offer that go beyond offering the highest price. Each buyer is different as far as tolerances to risk. This is where I work with each of my buyers and counsel them on solutions that work best for them.
Some best practices for crafting a winning offer include:
- Have your financing in order. Either be approved with a local lender or be ready to offer proof of cash funds.
- Determine what contingencies you can exclude from your offer.
- Shorten time-frames for contingencies.
- I will call the listing agent to learn what terms the seller would prefer and see if we can accommodate.
With the Stay at Home order, how do we look at homes? Have inspections?
Governor Inslee’s Stay Home, Stay Safe order mandates how we can conduct business, and as a member of Washington REALTORS® and the Northwest Multiple Listing Service, I have additional mandatory protocols for in-person interactions including:
- Brokers are to work from home and are to do everything they can remotely to avoid in-person activities.
- No public nor broker open houses are allowed.
If in-person activities are required:
- No more than two people, including the broker, may be at a property at any one time. Because I am required to be in the home during showings and if there are two buyers, only one buyer at a time can enter the home. Family members and those not part of the transaction will not be allowed to tour.
- Those two persons must strictly follow social distancing guidelines.
- I am choosing to wear a cloth mask, disposable gloves and shoe covers whenever I tour a home and I’m asking my buyer-clients to do the same.
- Sellers may have additional requests from people touring homes including wiping down countertops, doorknobs, light switches, etc.
- Virtual tours and walk-through videos are now more than ever very important in “scrubbing” out listings. The goal is to limit in-person interactions as much as possible for the safety of all involved.
As a germophobe, this is my worst nightmare having to enter other people’s homes. I found my T-Rex Halloween costume (the inflatable kind) and I’m so tempted to get that out to show homes! 😊
Home inspections
For home inspections, with the two-person rule, only the inspector and I can be at the property. Buyers cannot come to home inspections. I can video chat with you during the inspection but you cannot attend.
Repairs
Contractors right now are not allowed to do work unless it is an emergency. This is an important expectation for buyers to understand. If buyers attempt to negotiate repairs with a seller, that seller may not be able to hire a contractor to do the work. A buyer may have to try to negotiate a credit instead of a repair. There is much more on this topic that will be unique to each transaction but I wanted to bring this up that we are not in a “business as usual” environment.
Protecting your finances during the Coronavirus Pandemic
The Consumer Financial Protection Bureau is a good place to start if you have been financially impacted by COVID-19. Please visit https://www.consumerfinance.gov/coronavirus/ for information on the economic stimulus relief programs available.
As always, please feel free to contact me with any questions you have. Take care of yourself and I look forward to talking with you soon!
Statistics compiled by Coldwell Banker Evergreen Olympic Realty, Inc. from information and statistics derived from the Northwest Multiple Listing Service.