Coronavirus: How It's Affecting The Real Estate Industry

Coronavirus Greatly Impacting Our Lives!!! Real Estate Industry Virtually Shutting Down!!!

Hi Folks, Here in Pittsburgh PA, and many other cities, most of us are staying home adhering to our government's mandates. We take this time to thank all of those who are on the front lines keeping us safe and supplied. We owe you a great debt of gratitude. I hope and pray that we will get through this quickly, emerging stronger than ever. But that's even uncertain at this time. We are all struggling to make ends meet, trying to stay healthy, and protecting our families plus our sanity. Having a strong support network is crucial during these times as the coronavirus has greatly impacted every aspect of our lives. In my city, the real estate industry has virtually shut down. Very Alarming!!!

These are very scary times for all of us as we try to cope with uncertainty. Renters unable to pay rents, owners unable to pay mortgages, property managers/maintenance workers not allowed to do their jobs and realtors/inspectors/contractors etc. not doing anything in person. This is drastically affecting everyone's cash reserves. I am personally affected as well as the real estate industry has almost come to a complete halt. Not only are we ordered to not show properties, hold open houses, or schedule listing appointments but all other industry professionals are limited in what they can do. No inspections or appraisals are allowed, contractors can't go into homes with the exception of emergency situations, etc. You get the idea. As realtors, we feel bad that we can't show your home or investment property, except virtually from a listing that was already prepared and up. We are sad that we cannot help you find your next dream home or money making investment property, but we are trying to keep you and us safe and healthy. Sure you can still make an offer sight unseen, or by viewing a virtual tour. And some of those virtual tours are quite impressive including 3-D imaging and drones. I still see newly posted properties on many sites but there are still limitations in the acquisition process. Please be aware that many brokerages are using a "Covid-19 clause" that discuss handling these delays. And I do hope, for everyone's safety, that no one is physically showing these properties during the mandate. Many buy properties sight unseen successfully, but if you go this route I suggest putting at least an inspection contingency on your offer. Still though, many of us aren't even thinking about real estate. We're just trying to survive! We can however support each other and/or our communities during this pandemic.

We are all very sensitive to those who are out of work, not knowing where their next paycheck is coming from and/or struggling to care for their families. Buying or selling real estate may be the last thing they're thinking of and I totally get it. I have seen the very good and the very bad in some people during this time. People that are scamming others during this pandemic infuriates me. However, seeing communities, businesses and individuals coming together to help each other empowers me. Seeing food banks, large corporations/smaller companies making hand-sanitizer, 3-D printed/hand-sewn masks, while good samaritans are helping others with life sustaining chores (from a safe distance). This gives me hope that we will indeed come out of this more connected. In real estate I see many banks offering mortgage forbearance, though caution as this is a very involved process that dives very deeply into your financial situation. Still, with interest/mortgage rates lowered plus some fees waived, these measures are very encouraging and much needed.

Also much needed are ways to satisfy our interest in real estate while quarantined. Here's what we can do. View virtual tours of properties that interest you compiling notes. Set up online searches yourself or get them set up for you from the MLS. Most importantly, if you need to finance your venture, get a pre-approval now. I hear the process is taking a bit longer these days as staffing is short, but doing so will ensure that once through the pandemic you will be ready to proceed. Plus it's always good to know how much you can afford to define your search and avoid unrealistic expectations. If you were planning on listing, but didn't yet, get a virtual home valuation. This may be the time to get your place show ready with a fresh coat of paint or DIY projects. Believe it or not, home improvement stores are still open but check with your local shop. Be careful though when going into a public place. I know, I know, a lot of stress on living life cautiously, but it's how we've become. Ok, it's all fine and dandy to prepare, but can one still buy/sell real estate during the pandemic?

The short answer is YES but it comes with contingencies, exceptions, patience and in most cases blind faith. You can still make offers on homes or investment properties sight unseen and many people do successfully. While personally I'm not a huge fan of this, I might suggest having at least an inspection contingency attached to the offer. Buying properties sight unseen is more prevalent in the investment community. Again though, patience is the optimal virtue, as many industry professionals are short staffed and/or on lock down with no personal contact. I am hearing of virtual closings but I believe those are being conducted on properties that have already gone through the other phases prior to our government's mandates. Remember though, the deeds still need recorded, and being that the courthouses are closed you could still be vulnerable. Ask your particular settlement company. Whatever you can do virtually, do so. But again, expect delays. No one knows for sure how the real estate industry, or any industry for that matter, will fair after this. We just have to be cautiously proactive, listen and adhere to our healthcare providers, be inventive, and above all keep the faith. We are strong and will overcome.

Be Safe, Be Well, Wash your Hands and Think Positively.