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Alert Level 3 continues | How Covid has changed the Real Estate industry

Category Industry News

South Africa will remain on Alert Level 3 until 15 February - with the Real Estate industry expected to continue to operate under the unusual circumstances that have been brought about by COVID-19 pandemic. As with all industries, real estate has had to adapt to the new normal across the globe.

 

Adopting safety and hygiene practices have become paramount, as South Africans across the board are encouraged to regularly wash and sanitise their hands, properly wear a face mask and practice physical distancing at all times. 

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says while the South African real estate industry is experiencing many changes in safety protocols, the property market has also seen an unprecedented increase in sales activity following the hard lockdown. 

Knowing the limits 

In a recent article posted by RE/MAX LLC, RE/MAX agents around the globe share the changes they have had to make in face of the pandemic and report on the levels of activity in their respective local markets. Wearing a face covering and using hand sanitiser has quickly become the norm and each house-showing or open house event is made as sanitary as possible. In many cases, there are now limits to the number of people allowed inside a house at one time - and it will likely stay this way to maintain social distancing.

Sellers often have special instructions for agents, such as requiring temperature checks or asking guests to wear shoe coverings inside their homes. Although interested parties are encouraged to bring their own supplies, agents are getting creative when finding ways to provide sanitary supplies as a thoughtful gift.

Increased use of technology in the home-buying and selling processes has also been a trend across the globe, acknowledges Goslett.

Honing the search process   

To prevent unnecessary in-person meetings, buyers are beginning their home search online, touring homes via video calls and even signing digital contracts. Now more convenient than ever, digital communication tools - including video call platforms such as Zoom - allow both buyers and sellers to work alongside their agent with minimal in-person contact.

READ: Buying a home under Alert Level 3 | 'No delays expected'

"Without a doubt, tech has been the best ally to sellers, buyers and agents. With virtual home tours in demand, our cellphones are now our best tools. This is most likely to stay for a while - or forever," says Tonny Madrigal, an agent with RE/MAX Executive Realty in San Jose, Costa Rica.

Avoiding unnecessary in-person meetings 

Gerhard Kotzé, MD of the RealNet estate agency group says the real estate industry globally is reaping the benefits of being one of the quickest to adapt to remote working when SA was placed under Level 5 lockdown in March.

"Certainly, most of the agents in our group are now able to work completely remotely and make use of technology to facilitate most of their interactions with home owners, buyers and tenants, with physical meetings being pretty much limited to property viewings by appointment while following strict Coivd-19 protocols.
 
"And they have concluded literally thousands on transactions online this year, because they have continued to offer superior service and because our digital platforms offer prospective buyers and tenants such brilliant pre-views of our listings through excellent photography and video tours.
 
"In our digital real estate eco-system, buyers are also able to apply for their home finance online, and even complete most of the paperwork required to effect transfer of their new homes - although we do still recommend that they visit the attorney's office personally if they are paying over a deposit or need to sign any legal documents."
 
 
Moving on to the market conditions, in the US is currently experiencing an unprecedented seller's market. So much so that Lisa Harris, an agent with RE/MAX Center in Georgia, recently sold a home that received a staggering 86 offers. The closing attorney noted that this was a record for the highest amount of offers he's ever seen on one house".
 
Like in most real estate markets across the globe, the increased activity within the property market is driven by change as lifestyle factors, such as remote learning and working from home, that are shifting peoples' wants and needs in their living spaces.
 
Goslett says despite renewed activity, he predicts that local "house price appreciation will remain low for 2021 as a result of the financial pressure many households will feel owing to ongoing economic challenges brought about by the pandemic". 
 
"That being said, the 2021 market presents as many opportunities as it does challenges. Those who can afford to invest in real estate now will stand to make substantial long-term returns on their investment."
 
Standard protocols for home viewings during the Covid-19 Pandemic:
 
Those new to the market now may wish to familiarize themselves with the current standing protocols for home viewings. These were introduced by the Estate Agency Affairs Board in June and are in compliance with the Disaster Management Act as well as the new Covid-19 regulations. They include the following:
 
  • Physical property viewings should only be arranged after a buyer or tenant has expressed definite interest in the property and should be kept brief;
  • Everyone involved must be advised of the safety protocols ahead of the viewing and must agree in writing to adhere to these;
  • Prospective buyers or tenants may not travel to the property in the agent's vehicle - they can only meet on site;
  • Only two people at a time may view the property, and any current occupants need to vacate the property while they are there;
  • Everyone on site must wear a mask at all times (and under the new regulations it is now illegal not to wear one anywhere in public);
  • If there is more than one viewing scheduled on the same day, the agent must ensure that the property is ventilated and that all surfaces are sanitised in between viewings;
  • Visitors to the property who refuse to have their temperature checked or sanitise their hands must be refused entry;
  • Visitors must confirm in writing that they have not to their knowledge been in contact with anyone who has Covid-19 for at least 14 days before the viewing and do not themselves have any symptoms of the virus, including a cough, a sore throat, red eyes, shortness of breath or weakness;
  • Viewings may not be conducted if any resident of the property has contracted Covid-19 within the past 14 days or been in contact with anyone else who has tested positive for the virus;
  • Agents must as far as possible ensure that no surfaces, handles or objects are touched during the viewing, and must immediately afterwards sanitise any that are.

Author: PROPERTY 24

Submitted 15 Jan 21 / Views 722