The covid-19 outbreak has affected every industry. As new unemployment numbers come out it leaves people speechless. There is no guide book for times like these. Some real estate investor may see a opportunity to hunt for real estate offers.
Many home owners didn’t have the money to pay their mortgage this month. Also, many tenants could not pay their rent as a result many landlords are in trouble to make their mortgage payments. Looking at the current mess on the real estate market many see this as an opportunity for property investors. Some already speak of a real estate recession.
But not so fast
Of course, we can already start thinking about possible consequences for the real estate market. Nevertheless, we need to keep in mind that we don’t know yet what exactly we will have to face as this covid-19 pandemic continues.
A possible
scenario
One scenario would be a compressed but normal recession and it would probably look a lot like the 2008 recession, but quicker and deeper. Of course, it is not difficult to imagine other set-ups where a larger disaster awaits.
There is not much else you can do than to…
Stay
positive
We should
not forget that the real estate market moves very slowly, and the covid-19
pandemic is still young.
It is very unlikely that all of a sudden people will sell their homes for next to nothing. Even if home owners get under pressure because they can’t pay their mortgage anymore, we need to keep in mind that this will happen to thousands of people – most probable they will receive some sort of help to prevent them from losing their home.
Time of opportunities
No doubt, there are and there will be more opportunities for a real estate investor. This is a good time to go hunting for real estate bargains.
Real Estate Investor to the rescue
At the same time, nobody feels good about taking advantage of disaster. Therefore, it has to be noticed that many will be happy to find buyers quickly even if it means to sell for less. A real estate investor may be able to give exactly that help that the home seller needs at this time.
Spring is naturally
a time when sellers put new home listings for sale as more people are looking
for a house to buy. Home sellers hoping to take advantage of the buyers new
born enthusiasm after the winter period. But this year, new listings dropped
significantly in March and early April as the Covid-19 outbreak embraced the globe.
Real Estate
Portals report less new home listings
Zillow, inc. reported yesterday that newly listed homes in the U.S. were down 27.1% from a year ago in the first week of April. They reported that the number of newly listed properties usually increases in late March and early April as home buying season starts. This year it’s been quite the contrary as many states have suggested or instructed people to stay at home. New listings in the U.S. have fallen 19% from the beginning of March.
No surprise
We can see the same trend happening on our website with international real estate listings. The number of new listings dropped slightly as well as the number of people who made enquiries about real estate offers.
It is totally understandable that people had other things on their mind than getting a new home. Nevertheless, after the first weeks past we can now see that the number of enquiries is slowly coming back to normal.
While the
covid-19 outbreak and the resulting social distancing have cooled the real
estate market considerably, it isn’t completely motionless. Buyers, sellers and
real estate agents have started to change their activities as they adapt to
public health requirements. They make 3D Home tours available or make home
viewings via video conference.
Therefore,
it seems like a good time now for all home sellers that are in a wait-and-see-mood
to get their home for sale out there.
Need for
new homes is still there
Although there is a particularly strong wait-and-see pattern similar to what happened during past pandemics we can see that customers still interested or actually needing to buy a new home even if they are not going to walk-throughs or able to close on transactions in person. Especially smaller and cheaper properties are in high demand.
List your home for sale
If some
predictions turn out to be true and house prices will fall dramatically due to
the covid-19 outbreak wouldn’t it be better to sell your house today rather
tomorrow?
After 4
weeks being locked up in an apartment in town, I wish I could be in the
countryside. I’m not alone, we can see a tendency on our website that the
demand for real estate on the countryside is slightly increasing. If it will
lead to more sales is still to be seen.
We need
nature to be happy
Some recent news from Portugal, where people flocked in thousands to the beach during country lock down or from Snowdonia National Park in Wales, UK that was inundated with visitors, simply shows that we still value being out and being in the nature. It doesn’t matter how comfortable our homes are or how convenient it is to live in the striving city we need nature to be happy.
Since Covid-19 many see things differently
During lock
down we all seem to have been busier than ever keeping in touch with friends
and family through messaging. Sharing funny stuff, thoughts and just moments of
our daily life has become part of our routine. I received many photos from
friends who live in the countryside. They show how they do relaxing walks in
the forests that are just at their doorsteps or how they do some gardening, growing
all sorts of vegetables. “Lucky them!” I thought, I wish I could do the same.
Having a
balcony is a start
All I was able to do so far was to grow some salat and strawberries on the balcony. Anyway, that’s already better than nothing. But still, I think I would really enjoy living in the countryside especially in this uncertain covid-19 future to come.
Taste the fruit of your own labor.
Eating your
own produce
Especially
now where many people started working from home – me included – it would be great
to get away from the computer sometimes and do a bit of gardening to find your
balance and be out in the nature. As a
reward you might even be able to eat some of your own produce.
What do you think, will covid-19 drive people back to the countryside?
Please leave a comment below and tell us what you think.
This temporary quarantine made many
people think about their values and goals in life as well as their work
situation and their homes.
Although, this isolation is only temporary,
life itself has always and will continue to change.
Our social interactions will be different for months, if not years to come. Our economies will eventually grow again, but the way we do business will have progressed. This is true for real estate as well.
Next time I like to quarantine on a tropical island…
One thing is certain, everybody needs a place to live, therefore real estate will always be needed. As much as everybody would like to improve their homes to be able to quarantine in style in case this happens again, it has to be considered that the financial situation of most people changed. Therefore, the housing market needs to adapt. Cheap real estate will be needed more than ever before. “Cheaper” meaning more cost effective.
This of course can mean that people have
to downsize or reconsider what they really need in their home – simply back to
the basic needs.
“Cheaper” doesn’t mean uglier
It’s true that many houses for sale that are on the lower end of the price range don’t look too good. But to be honest most of them only need a little bit of TLC and they can be a cosy home.
If you need to downsize, why not sleep on a sofa bed in the living room?
How can real estate agents adapt to this new situation?
You as a realtor can continue to do what
you are really good at – be there for your clients and understand what they
need in their circumstances. This is a new situation for all of us and for some
it may be hard to adapt. Maybe some can’t picture themselves in a smaller,
simpler home.
Whatever step someone needs to take, you
can be there to help and make this a good experience.
What exactly does this mean?
You have to think outside the box, but yourselves in the buyer’s shoes. It maybe time to rethink how real estate deals where done in the past and see new ways that can make the whole process simpler, more time effective and more cost effective.
Will you go with the flow, let the waves take you wherever they go, or will you build a ship and go your own way?
Pick your boat and get on your way.
What is your idea of real estate after quarantine? Leave a comment below and let us know what you think.
This is the
longest period of time most of us ever spent at home non-stop. The risk of
COVID-19 has grounded about 1.5 billion people worldwide, meaning people are
engaging with their homes more than ever before.
Regarding real
estate this means that many people have time to think about their living arrangements.
They may see things they like to improve in the house or they might shop around
for a new house that suits their needs even better.
Whatever
the reason why someone may shop around for a new home, it’s simply amazing to
see how realtors have already adapted to the new circumstances. I saw that many
newsletters were send out by them to keep their clients informed and engaged.
Target buyers who are at home
Also, they started to offer some great new services to buyers, for example to make a house viewing via video conference. While the agent would walk through the house for sale the client can follow along while sitting at home. The agent would explain while doing the walk-through and answer any questions that arise.
Another less personal but equally effective way to target buyers is the virtual tour, where the real estate agent made a video recording of a house viewing and puts this video online. It might surprise how many people will actually look at it who otherwise would have never asked for a house viewing.
My absolute favourite is the 3D tour. As far as I know, the real estate agent needs some special equipment to make a 3D tour for a house but from all options this is probably the best. The 3D model that is created allows anyone to “walk” through the house. It is similar to Google Street maps just indoors.
What about
private seller?
Well, nobody can stop you from doing your own video where you walk through your house for sale. This is something everybody can do.
This is definitely some positive side effect of the COVID-19 and I hope this new digital strategy for real estate is here to stay. It saves a lot of time for buyer and seller – house hunting can be very time consuming – as this already helps to get a good overview of a property.
Changing the way we think about real estate usually happens very slowly, sometimes over a few generations. Basically, we adapt to new needs and likes but at the same time we benefit from the customs and experiences of the generations before us.
Think About Real Estate Priorities
I was thinking about this a lot the last couple of weeks – not only because I have a lot of time sitting at home – but mainly because my priorities seemed to have changed.
Storage Space
New on my wishlist – a pantry
I live in a spacious apartment but now
preparing for the lock-down I found myself running low on storage space for
food items.
I ended up piling up water bottle and
canned food in the living room. I was reminded of the basement in my
grandmother’s house where they use to store foods for winter time when there
wouldn’t be much fresh fruits and vegetables available – that would come in
handy right now.
I also thought of those nice old-style
apartments in Berlin, they would always come with a “Speisekammer”, – literally
meaning food chamber – that’s a pantry, a small room in the
kitchen dedicated to shelf-stable food storage. I loved to hide in one of those
when playing hide and seek with my friends who lived in one of those
apartments.
I think that’s one of those things I really
would like to have now and I’m sure in my next home I will make sure I have a
pantry.
Practical and clean
I always hated clutter, now I hate it even
more. Since the coronavirus I became very minimalistic and I just love it,
every day more. It looks tidy and is just so easy to clean and disinfect. I
only kept some decoration that is actually serving some purpose, like mirror or
a clock.
Another thing that is on my wish list for
my next home is a sink beside the entrance door. A place where you can wash
your hands straight away when you come in. It just seems to be the perfect
place and you can make washing your hands a little entering-the-house-ritual.
Another thing I find to be great in this time is some sort of outside space – being it a garden or just a balcony. It can be great for many things, drying the cloths, grow some vegetables or just letting the sun shine on your belly… Especially when spending several days or weeks at home some space like this can make all the difference. Houses with garden are just great when you have to stay at home.
Flexible
One thing COVID-19 teaches us is that our
house should be flexible. Within a couple of days some people found themselves
in a new situation where they maybe had to quarantine someone of the family or
set up a home office. This is very challenging for many. An en suite guest room
can be a good solution as you can turn it into your temporary office or where
you can quarantine yourself if necessary. An en suite guest room
is a bedroom with adjoined private bathroom.
Back to the Basics – think about real estate
Altogether, with everything that happened
in last few weeks, it definitely already changed my view of real estate. It all
comes back to the basics – a warm, practical, clean shelter with enough storage
space for necessities and last but not least for our mental health, some space
outside.
What do you think, will the covid-19 change
the way we think about real estate? Leave a comment below and let us know what
you think.
The cat is
sitting on your lap, your kids are screaming and running around you, here you
are finding yourself with your laptop at the dining table trying to cope with
this new challenge of working from home.
This is a sudden and new circumstance for all of us. Because of the coronavirus pandemic many employees are finding themselves in this new situation of working from home. It has its advantages but also comes with its very own challenges.
How to make
your home office successful
Here are a few tips how you can stay motivated and effective at your new workplace within your own home.
# 1 – Keep the routine
Even if you are working from home now there is no need to get floppy. Stick to the morning routine you had before, wash, get dressed, look professional. This gets you into the right working mood and you don’t need to fear the video conference with your boss or clients.
# 2 – Sit at the table – dedicate a space just for your work
Although it might be very tempting to work from the sofa or even laying in bed, but there are more advantages to have a dedicated spot just for your work. This will help you to don’t mix your leisure time with work and keep things separate. Keep everything you need for your work close at hand. Like this it will be easier to focus on your job.
# 3 – Stay concentrated
That’s probably the most challenging of all. There may be kids, pets or your partner that are moving around in the same space distracting you with all sorts of things. If you can’t have your own room to work in peace, it might be good to speak with them and arrange a quiet time so you can stay focused on your work. The less distractions possible the better.
# 4 – Make small regular breaks
Don’t forget to make small breaks just as you would get before at the office. Get a tea or coffee, walk around a bit, stretch, call a friend… whatever you like to do in your little break.
Always remember, working from home is no vacation. It is very easy to get distracted and sometimes difficult to stay focused but with a good routine and planning it will be no problem.
You might get so good at it that you don’t want it to stop. ?
We have seen a sudden but shockingly high decline in interest for real estate in the COVID-19 affected areas. This truly is a big concern for everybody that works with real estate. It’s totally understandable as people have other things on their mind than to buy a new house. Let’s see what you can do to keep your real estate business healthy.
The arrival of the coronavirus has been
unexpected, both in terms of speed and extend of damage that it could impose on
the industry if not managed quickly.
So far, we don’t know for how long this
situation will go on or worst – we may not know how our business can survive
this time. Most likely the interest in properties will come back but at the
same time we don’t want to sit on our hands waiting for this to happen. So here
are a few tips on damage control for your business or – to give it a more
positive twist – improving your real estate business in a way that will make it
more flexible in the future.
Tip # 1 – Carefully plan your new strategy
First and foremost – like with every advice
given regarding the coronavirus lately – stay calm. This is true for your new
business strategy as well. Make yourself a coffee sit down and think about new
ways your business can operate. Maybe make a little brainstorm with your staff
via video conference.
Keep in mind to put yourself into the shoes of your customers. They are told to have as little physical contact as possible and only to leave the house if totally necessary. A trip to a real estate agent might not be on their list of priorities right now. At the same time, they may have lots of time at home, being bored and surfing the net. If they would have the possibility to go to some virtual house viewings it’s probably great fun for them. Who knows if they not fall in love with one of your houses they otherwise never would have seen?
Technology to the resue
Tip # 2 – Less personal and more virtual
This is definitely the new way for many businesses. If you think you still need to improve in that regard, this is the time to do it. So far, many really appreciated the personal contact real estate agents offer – they could discuss their needs and preferences. Only because you should avoid direct contact doesn’t mean you can’t still offer a great service to your clients. It only means that the way on how to do it changes. You can still be there for them – although not in person – and keep them engaged. For example contact via phone and internet.
Find a way for your employees to work from
home. Strange as it may be in the beginning, once everybody is used to it you
will recognize its many advantages.
This new technology already exists and
right now we can see the big advantages it gives in a time like this.
Tip # 3 – Work on your online presence and social media
If you have no website, get one. If it is
20 years old, get a new one. Also, get active in social media. See what people
– your possible customers – are concerned about and give them a solution. If
they like it they will share it with others giving you marketing for free. Word
of “mouth” – although virtual – is a great tool that should not be
underestimated. It might even spread to locations you previously had no clients
giving you a broader audience.
Unusual circumstances call for unusual
solutions. This is your chance to come up with something truly unique and
creative. Good ideas you implement and share will spread and get your business
back on your feet in no time. As long as you stay positive and motivated there
are many ways you can explore. Please keep in mind to share your optimism with
your staff as well, they contribute a big deal to your business and are a
valuable asset. Give them room to be creative as well.
Tip # 5 – Getting help from the government
Last but not least, getting some help is no sign of weakness. Don’t feel too proud to accept it. You don’t need to feel ashamed to apply for the help your government offers for affected businesses. Every country may handle this in a different way and it is a great thing that they are helping the local companies. Always remember, to be in financial difficulties because of the COVID-19 is not your fault. If someone lends a helping hand to support you, you take it.
Those 5 measures are a big step in the right direction to keep your real estate business healthy. We all understate the significance of planning to deal with emergencies.
If not already done so, prepare yourself for future emergencies. Don’t forget to set up your business continuity plan – a file that identifies possible dangers/emergencies that can arise in your location, ways to reduce risks, and ensures the least amount of interruption to your business during such an emergency. The business continuity plan should assist you to set up the resources and information needed to deal successfully with a future crisis.
Of course, you hope you’ll never need to use it, but you’ll be happy to have it should disaster strike.
Keep your real estate business healthy and your staff safe, plan ahead
Keeping your real estate business healthy
in all sorts of circumstances will be essential and it’s always best to be
prepared.
There are certain smells that sometimes are unavoidable in an empty old house but some are so bad that they can ruin your real estate business altogether. If your house stinks it can be a big problem.
Have you ever been at a house viewing and the first thing you noticed when entering was a musty mouldy smell?
Well, it’s not very pleasant to say the least. It immediately gives a bad impression. Nobody wants to live like that. But if you see it from a business point of view it might be a different story. If a house stinks, you might be able to see what the problem is and be confident in how to remove it.
It happened to me when viewing a house in Germany. I was visiting an old house together with my family and when that musty smell hit us at the time of entering our immediate reaction was “no way!”. After a couple of months though we had to admit, there was no other house available anywhere near our budget.
That’s why we came back
to it and actually looked at the problem. It turned out that the problem was
some humidity in the basement. The basement was all panelled up with wood which
also didn’t help much. After a long family meeting we decided, we go for it.
It definitely paid off.
We removed the mouldy wood and did some treatment to the basement walls. The smell was gone and never came back. And best of all, we were able to get our family home within our budget.
That’s the advantage when buying, you are able to get a house with a bad smell cheaper. Of course, you have to be confident that you are able to remove the problem causing this smell.
When selling, it would be wise to spend
some money in solving the problem before. Or, maybe there isn’t even a severe
problem. Sometimes it just needs a bit of care, like opening the windows
regularly in an empty house. Especially before a viewing.
Bad smell that is really harmful
There are certain smells though that are really harmful for your business. It’s those that can’t be solved on a low budget or maybe they can’t be solved at all. Therefore, it is advised to make some counts before jumping into a “smelly” business. One example of a smell problem that can’t be solved would be a nearby pig farm.
Bad smell that can ruin your real estate business
I recently came across a neighbourhood in Portugal located near a paper factory. On photographs all the houses look lovely and it seems to be a really nice place to live. Unfortunately, visiting and smelling the place ruled out any real estate business in this area. Unless you have clients that lost their sense of smell. ?
In many countries the Health Authorities held public meetings to give information about the new coronavirus as well as informing about the ongoing preparations. This is a good thing to be prepared and informed as this puts everybody at ease. There is nothing worse than public panic, when everybody runs to the shop leaving empty shelves. This can create even bigger problems.
Of course, this is not just job of the authorities, there is something everybody can do. First, stay calm and objective.
How can each of us be prepared you may
wonder.
Especially if you have a real estate agency
you may have to think about what actions to take. As seen in Italy maybe it is possible
for some workers to do their tasks from home. Always remember, better safe than
sorry. You can make sure that all of them have the necessary tools to be able
to do that. Maybe a business cell phone and laptop that they can bring home,
just in case.
You should start thinking about special preparation for your team, some may have to stay with their kids if schools or kindergartens close.
Avoid trips to coronavirus infected areas
Also, avoiding trips to places where the virus has spread should be carefully reconsidered. Maybe a possible buyer likes to view a house in such place. It might be better to postpone in that case. For example, you could show a virtual viewing of the house instead. You can then travel later when it is safe again.
Regardless of being a real estate agent or not …
This is the most important everybody should do: wash your hands as often as possible. Everybody should have a good cough etiquette, disinfecting surfaces that might be contaminated, keeping distance to somebody who seems sick and don’t go out if you feel ill. Those are very simple but effective things. Of course, we all know them, but as we sometimes forget it’s always good to be reminded especially now with the new coronavirus.
