Many thanks to Jesse and Liz for sending me a selfie of them and their dogs yesterday to illustrate the new reality in real estate transactions for the time being. They did their final walkthrough alone… before going to closing alone… while I communicated with them from home. This is a closing they aren’t likely to forget for many reasons!
Minnesota Governor Walz issued Emergency Executive Order 20-20 this week, ordering Minnesotans to Stay at Home. This order goes into effect at 12:59 tonight, March 27, and stays in effect until at least April 10.
Good news is that real estate transactions are on the list of essential services that are exempt from the Stay at Home order… as long as we comply, to the maximum extent possible, with COVID-19 guidelines including social distancing and hygiene and other requirements of the order. This is important because the Governor can pull this essential services tag at any time if we abuse the privilege.
Here are some of the changes I have been seeing this week…
- Concerns about getting transactions in process to closing, with relief that real estate transactions are exempt from the Shelter in Place order
New listings and pending sales started to drop (keep in mind it usually takes about 10 days from accepted offer to pending so that is a lagging indicator)- Coming Soon status maximum extended from 21 days to 60 days
- Active listings no longer must be available for showings as long as it is disclosed in Public Remarks
- Suspension of open houses
- Buyers and agents no longer permitted at home inspections, inspectors conduct inspections alone
- Showings are minimized, keeping personal contact to a minimum…
- Do drive-bys and study online photos/info first
- In-person visits follow guidelines set by seller, may not be allowed
- Facetime or similar virtual showings with listing or buyer’s agent as seller allows
- If allowed, buyers do actual in-person visit only once to confirm making an offer, with no more than 2 people at a time, keeping social distance of six feet space at all times and minimum touching
- Client consultations go virtual
- Staging consultations go virtual
- Staging in vacant properties takes place after no one has been in the property for three days, the incubation period for inanimate objects; the same 3-day period applies to removal of staging items
- Fannie Mae and Freddie Mac announce that some appraisals are allowed to be conducted with a drive-by and virtual visit rather than an in-person visit
- Lenders are requiring verbal verification of employment within 3 days of closing
- Lenders want investment accounts verified within 30 days of closing
- Lenders want proof of self-employment within 5 days of closing
- Sellers pre-sign for closings, giving POA to closer so agents and loan officers also do not attend
- Closings are alone with closer and buyer who is signing
- Worried about moving into a home that might be infected with COVID-19? I learned of a disinfecting service this week that cleans surfaces and purifies the air with 99.99% effectiveness and takes only about 30 minutes for an average home… call Highmark at 952-288-4989 for more info
As one would expect, showings dropped this week.
Lawrence Yun, chief economist at National Association of Realtors, expects home prices to hold steady…
“The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers. With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady. The temporary softening of the real estate market will likely be followed by a strong rebound once the economic ‘quarantine’ is lifted, and it’s critical that supply is sufficient to meet pent-up demand.”
