Tech rules as the pandemic changes real estate forever

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Published Date 3/26/2021

If necessity is the mother of invention, what went on during this pandemic is one shining example of it. People can now hold down full-time jobs and work from home — in another state. And a house can be bought and sold without people arriving in caravans of cars on a Sunday afternoon after following a succession of "for sale" signs leading them to an open house.

Time was when an open house was like throwing a party, with brokers spending hard-earned money or skipping their kids' soccer games for it. The more lavish varieties of open houses offered everything from freshly baked cookies to champagne, while potential buyers walked away with glossy brochures to remind them of their visit.

Realtor's Lisa Johnson Mandell points out that when COVID-19 precautions began prohibiting large gatherings in enclosed spaces, open houses quickly disappeared. If buyers were permitted to visit homes, they did so individually and by appointment only—encased in masks, gloves, and booties. They were discouraged from touching doorknobs and faucets, lest they leave traces of the virus behind.

Now? "While the legendary open houses before COVID-19 were certainly fun, they aren't likely to return in their usual splendor," she says, "which is fine by many real estate agents, since these epic events attracted tons of looky-loos who had a low probability of actually making an offer." Remember that scene from the movie Ladybird, where mother and daughter walked through open houses every weekend as a pastime to have fun and act like potential homebuyers? Realtors tend to agree that individual showings are a far safer and more efficient use of time, as it narrows down visitors to those who are more serious about buying.

No more open houses also means a reduced fear of theft or vandalism as well. "More subdued open houses will likely return as pandemic precautions are removed, but 'don't touch' provisions and requirements of always having a real estate agent or representative with you are likely to stay in place," says Mandell. Video tours, virtual open houses 3D virtual tours (where buyers click through an interactive, 360-degree view of a home on their own) are now here to stay.

With many homebuyers inclined to purchase a property sight-unseen, the days of hopping a plane to see a house are all but gone. "Besides, unless they agree to an 'as is' contract, buyers are most often allowed to back out of a sale if the property doesn't pass inspection," Mandell adds. "As such, sight-unseen offers aren't as risky as they might seem, which is helping more buyers feel comfortable enough to go for it on homes they're admiring via the many virtual viewing options they now have at their disposal."

Add remote closings and desktop appraisals to the mix, and what used to be a typical real estate transaction is fast becoming a distant memory. In-person appraisals for a purchase or refinance may still return, but because of the details now offered by listing agents due to heightened listing tech and digital photography, they will no doubt be a breeze-through. Mandell adds, "During the pandemic, 'drive by' or 'drive up' closings became common, where you'd sign papers sitting in your car, while a masked and gloved runner delivered papers back and forth."

Times have indeed changed.

Source: Realtor | TBWS

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