Realtors expect the coronavirus outbreak will impact how they do business. On Monday six counties in the Bay Area issued an order for all residents living in their counties to shelter in their place of residence effective Tuesday, March 17 until Tuesday, April 7, except for those who must leave to perform essential services. This has thrown a curve on businesses and other services, including the way Realtors market homes.
"Right now things are changing daily and rapidly. In response to the risks posed by the COVID-19 coronavirus outbreak, the Federal Reserve cut its benchmark interest rate to zero percent on Sunday. This news has certainly made homebuyers optimistic; in fact, the already low rates had already caused a boom on refinancing, yet there are several areas of concern from the real estate perspective," said Mary Kay Groth, president of the Silicon Valley Association of Realtors.
Groth said the demand for housing could take a hit due to stocks declining, thus eroding down payments. There is concern about a buyer's future employment. Social distancing practices, particularly the recent Shelter in Place order, could impact the ability to transact business.
Before Monday's Shelter in Place directive, Groth said Sereno Group, Groth's brokerage, as well as other brokerages, had issued guidelines for safety within in their offices and when dealing with clients. These include following guidelines issued by the National Association of Realtors, like speak openly with your sellers about the pros and cons of hosting an open house, assess the risk given the location of your listing, recommend clients seek information at local and national resources, like the Santa Clara County Public Health Department.
"The Shelter in Place directive now requires that all open houses are suspended. However, we know there is still activity happening with multiple offers being presented and recordings happening," said Groth. "The county and title companies are working through the process, but clients should be prepared to see some delays in recordings. My understanding is title companies are an essential business tied to financial institutions. As always, communicating and setting expectations is of greatest importance."
Groth said more Realtors have been utilizing self-directed video tours or virtual tours as an alternative way to market property already." I expect more Realtors will do the same, after this directive. Fortunately, technology allows for virtual meetings for office meetings as well as with our clients."
Groth recommends Realtors who presently have a property listed should make discussion with their clients the highest priority. "We are ultimately concerned for everyone's health and safety and discussing marketing our clients' homes moving forward will ultimately serve everyone's best interests in the healthiest of ways," said Groth.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
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