Minnesota’s governor has ordered a “stay-at-home” order effective Friday, March 27 at midnight. What does this mean for the local real estate market and people looking to buy or sell a home?
The Executive Order exempts a number of “Critical Sectors” that will remain open for business — “Real Estate Transactions” is one of these sectors. According to the order, this category is “limited to workers who facilitate and finance real estate transactions and real estate services, including appraisers and title services.” Realtors help facilitate transactions, so as long as we comply with COVID-19 Guidelines set forth by the Minnesota Dept. of Health (including hygiene, social distancing, etc.), we may keep assisting our clients with buying and selling their homes.
Related services like inspections, appraisals, photography, lending and title work will continue as well. For anyone moving, the order includes an exemption for individuals to move to a new home or place of residence provided they follow the Minnesota Department of Health (MDH) Guidelines to the maximum extent possible. (Moving companies are also considered “essential” and are open for business.) So, Minnesota buyers and sellers, please know your team will be in place during this time, ready and willing to help.
Keeping Clients Safe
Over the the past few weeks, Realtors and Regional MLS Services, guided by the state and national associations, have been rapidly responding to the evolving state of the COVID-19 pandemic. Our intent has been to keep all parties safe, stop the spread of the virus and continue helping clients sell and find homes (a real need for many people despite these uncertain times.)
To help clients and customers understand the precautions and policies being implemented in and around the Twin Cities, I’ve put together a list of FAQs with answers based on the most up-to-date information from our state Realtor® association, our Regional MLS, and anecdotes from the field. This information will evolve; here’s what we know as of today.
Will there be open houses?
No, not for now. On March 25th the Northstar Regional MLS, where the majority of homes get listed, notified its subscribers (mainly Realtors) of the following regarding the new open house scheduling restrictions:
Effective now [March 25] and until further notice, the scheduling of Open Houses in NorthstarMLS has been suspended. Any currently scheduled Open Houses in the NorthstarMLS system have been cancelled and removed from the MLS. This decision was unanimously approved by the NorthstarMLS Executive Committee of its Board of Directors in the interests of public safety during this crisis.
This ban may be lifted at the end of Minnesota’s “stay-at-home” order.
How can home shoppers view homes for sale?
Demand for homes has been holding steady this month as more and more new properties enter the market. We’re still seeing listings get snapped up in multiple offer situations, despite the pandemic disruption. If you’re out shopping this spring, how can you get in to see these new homes? I recommend working with an agent to book private showings. Virtual tours and FaceTime tours can useful as well, though not quite the same.
Private Showings
If the seller agrees, a property can be toured by scheduling a private showing, which is how homes are typically viewed. But it can get crowded. Day (or week) one of a popular new listing can draw hordes of buyers, and their agents, all touring at once. But no more. Though agents have been advised in recent weeks to not allow overlapping appointments, beginning March 25th our scheduling software made it impossible to do so. As a result, the number of people touring a home in a private showing will be limited to one agent and her or his client(s).
Realtors have also been advised to provide hand sanitizer, foot coverings, gloves, etc. at entry points and to ask buyer clients to walk through homes with hands in pockets, or at to least avoid touching surfaces like light switches, door handles, cabinets pulls, etc.
If you’re a buyer, plan to meet your agent at the property as Realtors have been asked to drive separately from their clients for the time being. Social distancing is the goal when touring homes, and it can be quite easily achieved with these precautions in place and persistent behavior on the part Realtors and their clients.
Virtual Tours
Another way to get an up-close look homes is through 3D virtual tours. Though not the same as viewing in person, a 3D tour can be a useful way to do a preliminary walkthrough before deciding on a private showing. Lynden Realty uses Matterport technology when marketing homes which allows viewers to navigate virtually, “walking” room to room and floor to floor. Check out this sample from a current listing.
Sellers should be aware that virtual 3D marketing is always an option when listing a home, and may be especially helpful during periods of social distancing.
Zoom Tours
Using Zoom, FaceTime or a competing platform can also be a useful alternative to live tours. I’ve used this technology with out-of-town clients who want to see more than just photos but can’t make the trip. This type of “showing” has now become a new normal.
Our local MLS recently added “Virtual Showings” as a new appointment type for touring homes through the Showingtime scheduling app. Buyer’s agents can now officially and transparently request a virtual tour from sellers. The buyer’s agent can also add a note for the listing agent/sellers indicating which streaming video technology they’ll be using (FaceTime, Zoom, etc.).
Though screen viewing can’t replace the live experience of walking through a home, it might help in your preliminary search. Consider asking your agent to virtually tour a home with you before proceeding with an in-person showing. It may be a safe and effective way to pre-screen properties before moving forward in your search.
What can be done electronically or remotely?
Just about everything. With the exception of live home tours, inspections and some required “wet” signatures, most everything in the home buying and selling process can be done electronically. Our e-signing software makes signing contracts, disclosures, purchase agreements, etc. a breeze. With wifi access, clients can even read and sign documents on their smartphones.
Closing companies have been advised to conduct closings with buyers and sellers in two separate rooms, or at least spaced 6 feet apart. And “pre-signing” alone on a preceding date can also be an option, especially for sellers.
Earnest money deposits can be submitted electronically through an app called TrustFunds. Many brokerages had already been using electronic transfers (versus delivery of a personal check); it’s now being used more widely.
Learn more
Real estate professionals throughout the Twin Cities are well aware of the situation and are working together to keep clients and each other as safe as possible. If you have questions or concerns about how the process of buying or selling may affect you during this time, please don’t hesitate to ask. Heidi@lyndenrealty.com | 651-503-1540
Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.