Colorado real estate changes, upheaval or business as usual? Creativity has hit the real estate industry big time and everyone, buyers and sellers, are scrambling to make sense of adjustments created to protect the industry. Innovative processes are being updated to provide protection to the customer and the broker. The pandemic has changed the face of many businesses and most have risen to the moment and morphed services to keep ahead of the game.
Changes To Provide Protection
Agents are now doing business from their phones a large percentage of the time and virtual showings are helping move things along. Digital photos and zoom conferences partnered with virtual tours are the trend of the day. Open houses have transformed into virtual showings and FaceTime walkthroughs, so buyers don’t have to visit the house unless they think it’s the perfect one.
There has even been sight unseen purchases made as buyers scramble to enter the market. Demand remains high and long-term inventory challenges continue to shape the markets.
If scheduled to enter any property, gloves, masks and booties are required. Realtors turn on all the lights and open doors beforehand to prevent excessive touching. Buyers often seek out safer alternatives, closing options have become creative, combining drive-by or desktop appraisals, remote notarization and curbside closings. Some companies are adopting a policy of asking all buyers for a pre-qualification letter to limit in-person showings only to qualified and serious buyers.
Changes in Primary Focus
Due to this pandemic, buyers are now focusing on the possibility of an extra room where they can set up an office to work from home. As more and more people move into Colorado, the need for rental space is growing at a steady rate. The future is looking bright for investors to find lucrative rental properties to satisfy the option for renting, and the inventory is growing. Real estate and construction have been deemed essential businesses in Colorado since early on.
Changes From The industry
General guidance towards protecting all parties involved has been adopted by The National Association of Realtors, even as quarantine restrictions are beginning to ease throughout the country. The association is moving forward with measures aimed at empowering members to successfully navigate their real estate businesses during these challenging, and continually evolving, circumstances.
In the possibility of a sight unseen purchase, it is suggested that it may be a good option to include different language in the purchase agreement. This should detail where the buyer acknowledges that the buyer – not the listing broker, agent or seller – becomes responsible for verification or professional inspections that can confirm that the property is satisfactory and in effect same as previously acknowledged.
Where Do We Go From here?
It is hard to tell how much fallout the coronavirus will have on the Colorado real estate industry. It is agreed that it will become different for the agent, buyer or seller. but it is evident it has not had a huge impact on Denver home sales up until now. Prices have been steady and it is now a sellers’ market as the low mortgage interest rate has really helped buyers. Low inventory has helped move property quickly and kept sales within the original asking price. But the forecast is that there will be a positive trend following in the next year. We are all hoping that real estate becomes the market that leads the economy out of this recession. As always Katchen Company is at your side, ready to assist in any way possible.