The following, including photos, was written and submitted by Rick Seese.
After 30 years of real estate management and teaching the business to hundreds of agents, I now focus solely on helping clients buy and sell homes. But now I also have time to share my experiences and knowledge with you, the readers of Lowell’s First Look, on a monthly basis. I invite your ongoing questions, whether you are planning on purchasing your very first home or your next home, or your last home. Just email me your questions at [email protected].
This month’s top emailed questions were centered around our world of the Coronavirus situation and real estate. Not surprisingly, these questions were totally expected. I will do my best to answer the top questions, but please keep in mind that our world, country, state and regional news is changing almost daily.
The overwhelming number one question for this month is “What will the Coronavirus do to the real estate market”?
Unfortunately, given the unprecedented global situation, there are no models that can predict the future, but I can tell you what the current effect has been. Under the current “Stay Safe, Stay Home” directive, Realtors have been deemed by the State of Michigan to be Non-Essential. Therefore, it is illegal for us to show homes and meet clients face-to-face. Honestly, for most of us within the industry, this is a prudent move given the dynamic situation we are facing. Is it difficult for Realtors and clients? Of course, it is. However, if we want a solid recovery, within the shortest time frame AND the least illnesses and deaths, we must understand our roles in helping accomplish our humanitarian responsibilities. Do I believe that the market will completely tank, as it did during the recent foreclosure era? I do not. It may take awhile before buyers and sellers get back to feeling comfortable venturing back into the marketplace. As the infected numbers begin to decrease the Stay at Home rules will slowly be lifted. Some additional people will jump back into listing their homes and some additional buyers will begin looking at homes and we will be allowed to show homes and meet face-to-face with clients. The process may be gradual at first, as infection numbers decrease, real estate activity will increase. In the meantime, we will honor our status and prepare for the time when we can serve you in person. Please understand, we cannot show homes, it is not only against the law, but it is very unethical and inhumane for us to do so, at this point in time. Of course, I plan to keep you informed, as we move forward through this unfortunate time. The Stay at Home direct has been extended to Thursday, April 30.
Looking to buy a home soon? Here’s what buyers can do in the meantime.
There are online, national home shopping sites that buyers are attracted to. We recommend our local Multiple Listing Service at GRAR.com. It is the most up to date information you can find in West Michigan. Nearly all the national search engines upload the information from GRAR.com to their site. When GRAR members, our local agents report a pending sale, it is reported as such immediately on GRAR.com. The online national sites don’t upload those changes as quickly because their goal is to increase the traffic to their site which is supported by agent advertising. Therefore, if you are looking for accuracy, GRAR.com is your best bet. Additionally, we as Realtors are members and can access additional information for you, such as documents and information that is not accessible to the general public. Some Realtors have adapted and were able to post Virtual Tours for their listings before the Stay at Home rules went into force. A Virtual Tour can partially take the place of an open house. Additionally, communication with your Realtor during this waiting period can be extremely beneficial, as we receive news from the State of Michigan, Michigan Realtors and National Association of Realtors, we can pass that information on to clients. We answer lots of questions along the way from start to finish during the home buying process, which can help you plan accordingly. Lastly, mortgage loan officers are working diligently from home, as we are. Phone conversations, texting and emailing are much safer than social distancing and accomplishes the same goals. Discussing financing terms and getting Pre-Approved are essential items Realtors need in place, in order to negotiate a purchase agreement. Use this down time to collect all the necessary documents for the pre-approval process. Once you have those items accomplished with your lender, you can concentrate on the task of pursuing your next home and be prepared to make an offer when you find it.
Looking to sell your home? What timing should you expect with the COVID-19 situation?
As I pointed out above, we are restricted from showing homes. At this point, you can list your home, but you would need to take your own photos, since photography services are deemed to be Non-Essential. The advantage to moving forward now would be if you want buyers to know that your home is available to see, the minute the showing restriction is lifted. I suspect that once the restriction is lifted, the process will begin with more homes becoming available and buyers back in gear. Yes, some buyers will be affected financially during the inability to work through this period. Some buyers will need to exit the home buying market, if their employer needs to lay them off, for example. The government programs initiated by Congress are supposed to soften that negative effect and may take additional time to bring more employers and employees back to where they left off. Listing now or waiting should be a discussion you have with a Realtor. Your specific situation may be different from others and may affect your strategy for selling. We were already in a strong seller market with low inventory, so seller’s side of the market is less questionable than what the buyer demand will look like. Again, if you are looking to sell, Realtors are having extensive conversations with sellers now. We can line up photographers, prepare and email documents, prepare CMA’s for pricing comparisons and discuss the fine points of preparation.
How has the Coronavirus affected the real estate market, so far?
That is a great question but it’s too early to tell. We are keeping a close eye on the statistics and we have access to current market data on a daily and weekly basis. The critical time to analyze, will be the first 30 days after our restrictions are lifted. Then, of course, as the scare of contracting the virus alleviates, more buyers will enter the marketplace. As of now, we have no measurement. We can only plan for that time and advise our clients best by understanding their personal and specific needs. As we begin recording worthy data, I will keep you posted in my monthly column. Listings are still being posted, sales are still being pended and sales are still closing.
Realtors are anxious to return to the more personalized side of our work. Buyers that were already looking for homes, are anxious to re-start their looking. In a normal market, there would have been another whole new set of buyers entering the marketplace and a whole new set of sellers wanting to sell. Every day, new buyers and sellers enter the marketplace with differing reasons to buy or sell. Our expectations are that this normal pent-up business in the “waiting room” will begin again. My best advice for you is to get prepared with us. In the meantime, be safe. Be healthy. Be happy. The well-being of the world around us depends on all of us.
The early numbers.
When watching our numbers, I will include our expanded market that includes the school districts of Lowell, Belding, Saranac, Ionia, Rockford, Forest Hills and Caledonia.
Activity within the above described area from March 10 – April 10, 2020 (GRAR Statistical Search)
Homes Listed for Sale- 223
Home Sales Pended- 136
Homes Sold/Closed- 158
Total Homes Available on April 10, 2020: 351
Rick Seese works with buyers and sellers of residential, commercial and industrial real estate. He is an Associate Broker with Greenridge Realty, Inc. and has been licensed full-time for 43 years. If you’re interested in reaching out to Rick for more information, or have a question for the monthly article, you can contact him via email ([email protected]), visit his website at www.rickseese.com or Facebook page at (www.facebook.com/Rick Seese), or call/text him at 616-437-2576.
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