The COVID-19 pandemic has changed the real estate industry, like so many other sectors. However, the market is still extremely active due to limited inventory and low interest rates. Kelley Skillin-Smith of Century 21 First Choice Realty, said, “I currently have multiple properties under contract and have had two closings. All have had multiple offers and the properties are being sold at or above asking price.”
Peter Mason of Po-Go Realty echoed Skillin-Smith’s sentiment, “buyers need to be ready to go. We are seeing low inventory and multiple offers. It’s not uncommon to see offers $10,000 to $30,000 over asking price depending on the price range of the house.”
Julie Chandler of Po-Go Realty attributes the record low inventory to “sellers being more hesitant to list right now due to COVID-19 concerns.”
However, the industry has shifted to protect the health and safety of all parties involved. Based on guidance from the Maine Association of Realtors, David Willis of Willis Real Estate shared, “We are no longer hosting open houses. For serious buyers, we are providing virtual tours of the properties they are interested in and then asking the potential buyer to conduct a ‘drive-by’ of the location. Buyers can then select one property to view, with the approval of seller. For the walk-through, we are requiring all individuals to wear masks, gloves, and foot coverings.”
Tammy Ruda, Legacy Properties Sotheby’s International Realty, said, “sellers and buyers should work with a broker who is following a safe protocol and who will only be allowing qualified buyers to enter their home. We do showings now with only one person entering a home with a broker at a time. Sellers are leaving all the doors open, cupboards and closets open, and lights on. It is a lengthy process but well worth the safety of all of our client and ourselves.”
Photo courtesy of Kelley Skillin-SmithThe real estate industry has shifted to protect the health and safety of all parties involved. Kelley Skillin-Smith of Century 21 First Choice Realty is shown above.
Buyers do need to be aware that they can no longer attend home inspections. According to new statewide guidance on real estate activities issued by the Maine Department of Economic and Community Development, for all residential real estate activities, “inspections must be completed by the building inspector only. Building inspectors must wear a cloth face covering, foot coverings, and gloves when entering properties.” Buyers will receive pictures and a copy of the inspection report.
Thankfully, agents are not experiencing delays with closings. According to Mason, “title agents are still open for closings. Most are done in their office so they can control the environment (cleaning) before and after the closing. Buyer and seller are closing either in separate rooms or at staggered times. They have asked brokers not to come to closings. It’s a really strange feeling not accompanying buyers and sellers at closing after you’ve worked hand in hand (with rubber gloves on) for six to eight weeks. We have not done any electronic closings but we’ve done plenty of mail away closings.”
Willis has found that processes are actually running more efficiently because everyone is more readily available due in part to the new statewide guidelines and stay-at-home orders.
Keith Nicely of Bean Group provided a summary of what to expect during a typical transaction. “Yesterday, we did a virtual showing to an out-of-state client moving to Maine. They were very educated and specific on what they were looking for and their needs. A property came on the market that got the buyer’s attention. We drove the neighborhood with them on Facetime and did a virtual walk-through with the buyer that afternoon. We wrote a well thought out offer electronically and were under contract the same day. The virtual home inspection will occur this week.”
All agreed that it is extremely important for buyers and sellers to work with an experienced licensed broker during this unprecedented time. Ruda said, “professionalism and knowledge is essential in putting clients at ease. You want an experienced broker who values the health of everyone and will ensure that proper PPE is being worn, and will make sure that all things touched will be wiped down prior to leaving.”
Skillin-Smith added, “We can help buyers navigate this new system. Our goal is to provide guidance, advice, and direction, especially in this market. Experience is critical because we can assist with making connections and educating individuals through any ambiguity.”