6 Ways buying and selling a home has changed due to the coronavirus
2020 has been a rollercoaster of a year in the Vancouver real estate market. In January we saw the market come out swinging after a slower 2019, February brought multiple offers for condos, townhouses, and detached houses, and March brought the coronavirus. Real estate is still selling, and multiple offers are still not uncommon, but the way that homes are being bought and sold is different from how it’s been done before. Here are 6 ways that the quarantines and coronavirus/COVD-19 has changed buying and selling homes in recent weeks:
Fewer Open Houses
Vancouver’s sellers don’t want buyers wandering around and opening every door and cupboard right now as it could risk contamination. Buyers also don’t want to be crammed into a one bedroom apartment with groups of other people, so it’s a win-win given the current situation. Right now listings are by appointment only, with extra precautions thrown into the mix.
Virtual Tours
Buyers that are more cautious and comfortable with technology are opting to visit their potential new homes through virtual tours, which allow them to ‘walk through’ the house without leaving their couch. Pictures and floor plans can paint a picture, but a virtual tour can help fill in the gaps of what it feels like to explore the property without risking the coronavirus.
Sanitize & Don’t Touch
When buyers walk into a home they should expect to find all doors open so that they don’t need to touch any handles. Many realtors are also providing gloves and/or hand sanitizer at the door, while politely requesting that home buyers avoid touching anything. As an extra layer of protection, some realtors have also taken to disinfecting every surface with Lysol wipes before letting people in.
Coronavirus Clauses
If your home hunting goes well and you’d like to submit an offer to buy your dream home, extra clauses are being added specifically for the coronavirus in case Vancouver goes into a full lockdown. If notaries, lawyers, and banks aren’t able to work to complete the transaction after an offer is accepted, then it may be necessary to push back completion and possession until the paperwork and mortgage can be processed.
Electronic Everything
While most signing is done electronically nowadays, there are always people that prefer to meet and sign documents in person. That’s even less common now as realtors, buyers, and sellers all look to limit being physically close to people whenever possible.
Interest Rate Changes
Interest rates were dropping faster than we’ve seen before to start the year, and as the coronavirus pandemic continues to grow, we’ve seen rates shoot back up as banks become more hesitant with their lending because they’re uncertain with what’s next for the real estate market. Companies have been laying off employees left and right and the longer the coronavirus drags on, the more this will happen.
Buyers that are looking to buy right now are benefiting from the market change as there are less people looking to buy as they opt to quarantine themselves and not take any chances. Sellers are either assuming this will blow over shortly, or are motivated to sell for other reasons; everyone has their own reasons for selling and sometimes it can’t wait. In Ontario, realtors and real estate professionals were deemed an essential service for the very same reason and are allowed to continue operating while others are forced to fully isolate. It hasn’t gotten to that point in BC yet, but things are changing quickly
Have questions or comments? Reach out to us any time. Stay safe.