Real Estate In The Time of Coronavirus: One Day You’re In And The Next Day You’re OUT.

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Yesterday Empire State Development (ESD), the entity associated with the NY PAUSE executive order, issued an about-face “clarification” to real estate agents across New York State: Property showings must be virtual. Read the April 3rd article citing the clarification in the Democrat and Chronicle here. More on this topic as well as a brief update on the local residential real estate market below.

As always, I am available to talk privately with you about your particular real estate situation.

Call, text or FaceTime: 585-732-1767. ​Email: romecelli@realtor.com

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REMINDER:
​I'm hosting a Zoom meeting tonight at 6:30 pm to answer your general questions about the information contained in this update and about the local real estate market.

Friday, April 3, 2020 at 6:30pm - Save this link and join the Zoom Meeting on Friday evening.​ 

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So, what’s the deal?

It’s 3:19 pm on Friday, April 3, 2020. I was hoping to get a update clarifying the clarification from the association of REALTORS before now. Instead I got a note saying NYS hasn't given any additional direction to the real estate community as yet. So, this report is based on what I have been able to glean from a variety of sources. It’s a mixture of my opinions, my recommendations and a caldron full of imperfect information. My recommendations may become outdated at a moment’s notice when/if the underlying information changes. Just like you, I am using my best judgement in realtime, awaiting guidance from authoritative sources and then adjusting along the way.

Truth be told no one inside New York State government (let alone the real estate industry) seems to know for sure what I can and cannot do for my real estate clients. Here’s what I learned this morning:

New York State Association of REALTORS (NYSAR) interprets “virtual” to mean no in-person contact when conducting a showing. Licensees should conduct the showing alone and use a tool such as video conferencing with a buyer or tenant. The goal of the new standard is to further limit the possibility of one-on-one contact. NYSAR has been in contact with Empire State Development (ESD) and was informed that more comprehensive guidance will be forthcoming. NYSAR recommends that members act in good faith to follow the “virtual” standard as reported until state officials offer more clarity.

What are the options available for seeing/showing houses prior to making an offer (in no particular order since it depends on if you are a buyer or seller).

• Video conference tours conducted by me.  As I understand the rules I am permitted to go to homes unaccompanied with the permission of the seller. While there I can conduct a video tour. Looking at a property using tools such as FaceTime and Zoom is not as good as Looking at a home in person but, remember, because I would be physically in the property the tour would augmented with first person commentary. In addition, the tour would be interactive. Participants could direct me to pan this way and that way, move in or move out, etc.. This is a very different experience from a pre-recorded video tour.
• Solo in-person tours (Tours experienced and conducted by the buyer alone.). There may be some limited cases where a seller will allow a buyer to walk through a property unaccompanied by a real estate agent in-person. Naturally, this would give home buyers first hand experience inside a home. This technique is not ideal for a couple of reasons: First, because it may expose the buyer, the community and potentially the seller and the seller’s loved ones to coronavirus; and, second, going alone means seeing the property without the benefit of my highly experienced, professional eyes. The first issue is no small matter. When we leave our homes for any reason we are exposing ourselves to some risk of coronavirus infection and some risk of infecting others including those we love. We can take precautions but we can’t be sure we are entirely safe due to the nature of the situation. This is not a good time to play the odds or temp fate. I cannot recommend anyone go outside for any reason other than working at a job considered to be essential, accessing healthcare, buying food and getting some exercise. Ultimately, you and other consumers will have to make that call. The second disadvantage could be somewhat mitigated if the buyer is willing to conduct the tour with me via video conference technology. It’s still not the same as seeing a home together but it would get us a bit closer than the alternative.
• Videos conference tours conducted by the seller’s real estate agent or the seller. This technique became popular after NY PAUSE was imposed. Being able to take video conference tours lead to several of my clients to preparing offers and negotiating on properties. Realtime video conference tours allowed my clients and I to experience properties together; to direct the person holding the camera and ask questions as we went along. Not ideal but not the worst possible option for those who want to buy sooner rather than later.
• Pre-recorded videos and static photos provided by the seller’s real estate agent or the seller. In most cases this is probably the minimum necessary to market a property during the crisis. The limitations are obvious and apparent.

Remember, home buyers may accompany professional home inspectors during their home inspection. So, if a buyer conducts a virtual tour prior to making their offer they may be able to visit the property in person during their professional inspection. 

What is the state of the housing market in our area?​

• Since NY PAUSE took affect on Monday, March 23rd 155 single family homes, condominiums and townhouses have been newly listed for sale in Monroe County. 155 listings translates to about 13 properties per day on average. 22% of those properties have gone under contract to buyers as of April 3rd. This compares to 354 properties listed over the same period in 2019. Considering listing dates and then purchase contract dates 143 of those properties having taken contracts during the same period in 2019. By comparison to last year over the same time period new home listings are 66% behind last year’s pace and accepted contracts are about 77% behind in Monroe County.​

Personal Status & The Status Of My Business:

• I worked out of my office yesterday but, based on yesterday’s “clarification: I am back at work in my home office today.
• A number of my home seller clients moved towards listing their homes for sale yesterday. One property is poised to hit the market today. As a result of the “clarification” I have a lot of client conference calls on my to do list today. Our Zoom conference today should be very interesting.
• A number of my home buying clients are actively engaged in looking for homes to purchase. Some have submitted offers and been successful in consummating deals. Most will continue hunting using whatever tools and techniques that are available and advisable.
• No change in the health status my family, Carol’s family or Sasha’s family. All good so far.
• If you have time, please feel free to send me an update on how you’re doing.​

I will continue to post updates related to the metro Rochester real estate market during the coronavirus. The situation is changing rapidly. You deserve the most recent information about our real estate market from a source you trust.

I wish you and your loved ones good health and good spirits during this unfortunate crisis!​

Yours,

Rome Celli
585-732-1767
romecelli@realtor.com

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