Real Estate Takes Some Turns

Written by Andrew Rivett and Shelley King he shock and uncertainty for consumers and Realtors alike initially was nothing anyone has ever experienced in our recent history. Stay home, social distance, wash your hands, flatten the curve is the message that was driven home. The Real estate market felt the freeze as well; the phone stopped ringing, emails and internet enquires dried up, clients looking to view properties backed off, some seller clients put plans on hold. Those clients and agents who had transactions in progress struggled to try and figure out how they could move forward and which links in the chain potentially were going to break. Whilst the Real Estate industry has been deemed an Essential Service, that does not however mean business as usual. Adaptations quickly rolled out and Real Estate governing associations and local boards alike quickly restricted public attended “Open House” events, local offices closed to the public and restricted agent access as well as implemented protocols and strategies in how to safely support our clients, staff, and agents began. There always has been and always will be the need for Real Estate to move. It doesn’t matter what is happening with the economy or what industry is having a downturn. This situation however different, the reasons for buying and selling remain the same. Continuing scenarios such as; 'my rental has sold and market rent is equal to a mortgage', 'interest rates are good', 'I just got transferred or took a new job in Campbell River', 'estate sales’, 'change of living arrangements', 'retirees downsizing', 'our family has outgrown our current home’, 'time for assisted living’ and 'my employment is not affected by COVID-19'. Every consumer (whether buyer or seller) and agent may have a different risk tolerance and the new norm in real estate viewing, selling and buying has changed. Listing agents are monitoring their seller’s status by asking the present health of all members living in the home as well as anyone who has recently been traveling. The same questions are asked of buyers and the buyer’s agent. Are you required to be in quarantine? Prepare for the showing by turning all the lights on to avoid unnecessary contact points. As a buyer, prepare for success! If borrowing get a pre-approval including 2 years of CRA Notice of Assessments, credit check, and investigate how the STRESS TEST will have an impact on your borrowing as requirements are much different and there are many changes. View all info available (pictures, 3d tour, property disclosure statement, title, zoning). DRIVE by the homes to make sure curb appeal, home setting (driveway, lot features, neighborhood & neighboring properties) meet your wants & needs prior to booking an apT

pointment. Asking a seller to leave, clean, take dog and kids away only to reject the home when you arrive to view is not considered responsible buying. Buyer Agents should be preparing their clients for buying by educating them in the process. When that is done then booking the appointments is next. Agents will open the home with gloves/ masks, sanitizing wipes used for all touch points, social distancing Anything that is needed, such as opening doors, closets, garage, pantry is requested and done by the agent. Children that can walk are not permitted to showings, clients are not to touch anything and if needed the agent will wipe down things like stair handrails etc. Other professional services such as lending representatives (Mortgage Brokers & Specialists), Photographers, Home Inspectors, Lawyer & Notaries, Insurance, Property Appraisers, and Land Title Survey Authority, are all links in the chain of buying and selling and are working but may be slower to respond with additional workloads. Any one of these professionals that are required to enter a home will likely require it to be vacated of occupants and safety precautions taken. When it comes to handling paperwork the majority of it can be done online by viewing and signing contracts digitally without the need to meet face-toface or printing and scanning. Overall, like most business the real estate market is far from normal but, it has created well prepared buyers that have a purpose.

Erin Sheen Mortgage Broker 250.701.8859 www.erinsheenmortgages.com

The question of “should I wait till after the pandemic” is answered with the same relevancy that exists with or without a pandemic. Prices on Vancouver Island have not shifted, yet. There is however, some strong advantages to buying and selling now. Interest rates are very low and likely will stay until the economy is in full swing again, waiting for prices to fall before you buy will probably be met with higher interest rates. Because we continue to have low inventory, which has been the norm for few years now, the pent up desire to buy will keep prices from dramatically changing. Prices usually are driven down when inventory increases, economy is slower and un-empolyment higher. Recent activity and statistics for Vancouver Island reflect about 5000 Canadians retiring per week, in Canada and have been ready to buy here over the past 5 years. These buyers are not held back by jobs, mortgage challenges or economy.