Like just about everything else, the real estate business had to figure out how to pivot in order to meet the demands of the pandemic.
Adjustments had to be made as property owners complete transactions virtually.
Bryony Kavanagh and her fiance Wesley Pichette purchased a home on Oct. 30, 2020. COVID-19 just meant the process was quite a bit different than normal.
“There were a lot of listings that did 3D tours, where you can do it all online before even going to see the house,” said Kavanagh, a program coordinator for a mental health initiative. “We were focused on not just browsing. We had to really like the place.”
This comes as For Sale and Sold signs continue to pop up on snow-banked lawns. Some homeowners look to profit in the market, while others plan to buy their next home.
“It is currently a seller’s market, and we are experiencing very low inventory,” said Jennifer Jewell, broker for Royal Lepage Brokerage. “Because of that, we are seeing a lot of homes selling quickly, and in multiple offers and for over list price.”
Alison Knightley, mortgage agent for Rock Capital Investments with the Mortgage Centre, agrees, saying houses are being sold for over asking with multiple offers placed.
“A lot of clients are looking to get pre-approved or pre-qualified to make sure they can go in firm because that seems to be the trend these days.”
Jewell helped Kavanagh purchase her home. Kavanagh chose her home because it had four bedrooms, space for a pool in a backyard and a spacious kitchen.
“It was on a wish list,” said Kavanagh. “I didn’t think we’d get it, but we got four bedrooms.”
The two moved out of their townhome, just nearby their new home, looking for a bigger place to raise a family of their own.
When they were looking at houses to buy, she noticed multiple offers were made. She said the market is very competitive, describing it as madness.
“We put an offer on a home before we found this one in Shelburne,” she said. “We didn’t get it because there was somebody with a much better offer than us.”
They had to be quick, stretch all they had and willing to put it all out there on the table, which she said was stressful.
Her amortization term on her mortgage is 25 years. Knightley has seen a trend in people signing 25-year deals.
“Even 30-year terms, to keep their payments low right now with the uncertainty,” said Knightley.
“People are a little bit more cautious. I haven’t done many under 25-year amortizations.”
Knightley said rates are low, right not for fixed and variable mortgages. She has noticed more people going for variable loans instead of fixed ones these days.
When Kavanagh viewed her current home, the couple placed an offer the same night and were approved around midnight. They went over-asking.
“We knew we had to and we were ready for a bid of counteroffers, but we just got lucky,” said Kavanagh. “The seller was great to work with. I think we had a good offer, and I put a heartfelt letter in our offer as well, saying I could see us having kids and raising our family in this home.”
Much of the paperwork is online. Open houses are banned, and contracts and documents are emailed back and forth to limit face-to-face contact.
“We ask that all buyers view photos and video tours of homes before viewing them in person,” said Jewell. “That way, buyers are only going to physically view homes they are serious about.”
Knightly and her colleagues continue to work from home. Documents are signed electronically. She said the lenders have got on board with e-sign packages, and meetings are conducted over the phone, or they use Zoom.
“Everything was done virtually, which is new, but I also found it convenient to be able to it that way as well,” said Kavanagh.
MBN
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