Real estate trying to keep its house in order during outbreak
Broker of record for SWC Realty Scott Cavinee stands in front of a house that’s currently under contract.
Cavinee
Rachel Linderman
Ovi Manciu
The coronavirus’ impact on local real estate has really hit home with Scott Cavinee.
“I had a home sale pending just as all of this was starting to happen,” said the broker and manager of SWC Properties, based in Uniontown. The “this” to which he was referring is the pandemic sweeping the globe, forcing federal, state and local officials in the United States to shut down many operations. In an effort to manage the deadly virus, Pennsylvania Gov. Tom Wolf ordered all non-essential businesses to close, a list that includes real estate agents.
Agents in the Keystone State are not allowed to show homes, a foundation of their livelihood, during this crisis. And home inspectors are not permitted to enter houses to fill out their reports, a vital part of any sale. Banks and real estate closing companies are permitted to do business, provided they follow social distancing guidelines, so some deals are closing.
The house in Menallen Township, the one with the pending sale, has not been inspected, meaning a prospective deal is on hold. Cavinee is not pleased, and neither are many of his peers.
“We cannot even go into a vacant home, and a home inspector can’t, either,” he said. “It’s a little over the top. It’s an unoccupied home. No one has been in it for weeks. There’s no reason for this.
“I respect the governor and am sympathetic toward him. But I’m a common-sense person, and if real estate grinds to a stop, we’re in real trouble. Real estate really drives the economy.”
This horrific outbreak is posing a number of challenges to that industry, especially at this point of the year.
“This is prime time for us – springtime,” said Ovi Manciu, an agent with the Howard Hanna office in Peters Township. Winter, historically, is a bust time for real estate, but the transition to warmer weather is when the industry starts to burst forth as well. Until now, that industry has been strong in the Pittsburgh region.
Yet despite restrictions, real estate has not ground to a halt. Home closings are still occurring, provided they’re reached that juncture, and include only the closing officer, buyer and seller during the emergency orders.
“A lot of documents can be signed electronically, but the most important document – the deed – has to be signed and notarized, and some closing companies are doing that by drive-through,” said Manciu, who works at home while tending to his three children – ages 1,6 and 9.
Despite the ban on walk-throughs, agents have plenty of work to do from their abodes. Manciu said prospective buyers and sellers “are willing to communicate” via FaceTime video, and he keeps them up to date on what transpires.
“A seller can give a virtual tour over the internet. If an offer can be worked out, you can have it with a stipulation: When (the crisis) is over, a buyer can have three to five days to look at the house and have an option not to buy.”
Agents are working to keep people informed, as new listings come into the market. Manciu said a seller can take photos of his or her home and send them to agents, who can list the residences.
Rachel Linderman likewise is staying busy. She is a Realtor who launched SWC Properties with Cavinee seven years ago. Linderman continues to field inquiries, some from clients who were unaware of the restrictions placed on her. Restrictions that frustrate her.
“A lot of things are on hold,” she said. “I can’t look at a vacant house. We can’t take pictures or FaceTime video. We can only do what we can, and it’s not face to face.”
Linderman said she adheres to Wolf’s orders, but is getting reports that some in the industry are not. “I’ve heard about real estate people who are out taking pictures of homes, but I have to tell a client that I can’t go out. I’m abiding by rules while some others aren’t listening.”
The outbreak, of course, will dictate its own timetable, and that unpredictability concerns Linderman. “A lot of people are scared,” she said. “Investors are scared. Sellers are scared this could affect their (home) values.”
A young couple, Gary and Anna Yingst, have a closing today. They had a rental property in Mt. Lebanon, but are now moving to their own home two blocks away, in the municipality.
They worked out a deal before COVID-19 gained a presence in Pittsburgh and got their inspection March 7, but still had concerns with the date of closing. “We thought we wouldn’t have been able to do it,” Gary said. But they did, a happy happenstance at a challenging time for the industry.
COVID-19 may be creating chaos in real estate, but the industry perseveres. It is operating and poised to counter when an “all clear” is declared. “We’ll really be busy later,” Manciu said.