OPEN HOUSES, REVISITED
The provincial government announced earlier this week that the balance of the province entered Phase 3 of the COVID-19 re-opening plan. That also meant that Realtors were allowed to hold public open houses again. With that announcement, you’re probably thinking buyers and Realtors alike are dancing in the streets.
If you are anything like me you’ve heard the phrase “the new normal” countless times over the past few months. I, like many, understand that virtually every aspect of what we defined as normal back in March has irrevocably changed. I’ll continue to avoid crowded situations, look at common high touch surfaces with suspicion, and will continue to pay more attention to my health and the health of those I frequently come in contact with.
COVID-19 and the pandemic caused our brokerage – and myself personally – to do some pretty massive pivoting and in a short period of time. Despite the massive economic pain and isolation that the pandemic has caused, there have are some silver linings to consider.
Our brokerage was able to quickly pivot to working remotely and becoming completely virtual. Our agents and clients were able to adapt to online meetings and digital paperwork, and we became adept at negotiating deals over zoom and email. Our expectations for online marketing changed overnight, with detailed photography, walkthrough videos and 360° tours becoming the new standard. Our agents even began to host live virtual tours, open house-style, where viewers could tune in real-time to ask questions or request to see specific features of the property. We honed our skills in better qualifying clients before showing properties, helping to limit exposure in homes.
We were compelled to continue working for our clients – many of whom simply didn’t have the option to step out of the real estate market at the time – while keeping our staff & agents, our families, and our community safe. Our world changed overnight, and suddenly we had clients with sold signs on their lawns and nowhere to move to, homeowners who had purchased and now feared being on the hook for two mortgages if they couldn’t sell their current homes, folks who were suddenly laid off with an approaching closing date. Like many industries, we were thankful to have been investing in new technologies over the past decade, and so we were able to shift our team to home offices, put together a plan to work virtually, and communicate our next steps with our team members, vendors, and clients, all within a matter of days. Anxiety about the uncertainty of our world aside, we transitioned to a virtual workspace and marketplace with relative ease.
And then, we found efficiencies we had never considered before. We had quick and precise Zoom calls with multiple parties, no drive across town during rush hour required. We signed documents and transferred funds instantly. Suddenly, the online presence of our local listings was so comprehensive that we were better able to vet properties before booking dozens of showings with disappointing results.
I’ve embraced being able to manage the brokerage remotely. I didn’t have to be physically in the office. Everything from 1-on-1 coaching to team meetings to client consultations could be done virtually.
I firmly believe that by embracing the technology and the operational changes forced on us by the pandemic, our business has become more efficient and we’re delivering a better experience to our customers. Frankly speaking, I like most of the changes as they have forced us to improvise, evaluate, and most importantly, improve how we deliver our services.
We anticipated that the government would loosen the last of the restrictions around real estate within the months of August and September. In fact, we started polling our agents and our clients to gauge support for returning to open houses. The results were overwhelmingly in favour of not going back to public open houses, at least for the time being. Over 80% of homeowners said that they would not want an open house if they were selling. And over 60% of buyers indicated that they would not be interested in visiting an open house. The results were similar within the brokerage, with over 80% indicating it was way too early to be running public events.
In my opinion, the public open house had long run its course. On many occasions, open house visitors didn’t want to or felt they weren’t obligated to provide contact information, and so they gave fake contact information because they didn’t want to be hassled with the agents following up. Frequently, those visitors were still allowed in. After all, who would have malicious intentions when visiting an open house? Homeowners were kicked out of their home for a Saturday or Sunday afternoon and sometimes both days. Realtors used open houses to show their sellers they were ‘working’ and actively trying to sell the home. The truth of the matter was that the likelihood the buyer for that home would come through the public open house was in the low single digits. It was, however, a good source of new buyer leads for many agents.
Fast forward to March 2020 – a pandemic lockdown meant no public open houses. The pivot to conducting a viewing virtually or even in-person also meant Realtors had a lot of questions for potential buyers to answer before the door was opened. Those qualifying questions helped eliminate the real estate addicts who make a hobby of wandering through people’s homes on the weekends. This new emphasis on technology allows buyers to browse and examine properties in better detail and on their own time. If the consumer is serious and was qualified to buy, the door is opened. Pandemic conditions aside, if you were a buyer genuinely considering a home for purchase, wouldn’t you rather view it privately with a real estate professional than at a busy open house? Homeowners now know who’s coming through the door, and realtors aren’t being poptarts and running out to show properties to people that are curious instead of serious.
Taking into consideration the current state of the market – extremely low inventory, and most serious buyers understanding they need an agent on their side well before looking at homes – the public open house should go the way of the Saturday real estate newspaper.
In this broker’s opinion, the industry and the consumer are better off without public open houses. We are able to provide a better experience to the homeseller and homebuyer and achieve the same end goal of showcasing a home. For the individual Realtor, these newer processes will also bring about positive change in how they perform for their clients and generate new prospective clients.
The pandemic has forced a lot of changes on society. This is the time to seize the opportunity and pivot to improve the real estate experience. Not life-altering stuff, but on an atomic level, these small changes can have huge impacts down the road.
This could mean a few eggs get hurled my way… but you don’t make an omelette without cracking a few eggs.
THE WEEK IN THE GUELPH REAL ESTATE MARKET
The week that was. You’ll quickly notice in the reports linked below that we’ve gone retro this past week. We have returned, temporarily, to the old style PDF reports for each neighbourhood. Earlier this week we made the transition over to a new version of our MLS® system and expanded the coverage. The new look and feel also means some of the ways I was able to communicate sales data have been removed. We’re working to find new ways to present the sales data visually but it might take a few weeks for me to find the backdoors and hidden spots like I did in the past. Bear with us while we regroup on this. The data will still be presented weekly, maybe just not as pretty as before. Of course, if you ever want more information on specific properties, please do not hesitate to reach out.
43 homes were reported sold in Guelph and the two surrounding townships. A drop from the 63 sold during the same week in 2019. 27 of the 43 homes sold went at or above list price. That’s 62.8% – impressive and scary at the same time.
The median home sold this past week looked like the following: 3 bedrooms, 2 baths, 1,442 square feet in size, and it sold for $649,990 or $473.49/sqft. This home took 8 days to sell and homeowners achieved 101.65% of their original list price.
The story of the 2020 real estate market continues – an incredibly strong seller’s market, bolstered by the incredibly low inventory levels still existing in our market.
Thanks for reading.
JULY HOUSING MARKET REPORTS – NOW AVAILABLE
Reports for July are now available for Guelph, the Tri-Cities, and the surrounding townships. Find them below:
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Featured Property
46 MARSHALL DRIVE
Guelph, ON
4 BED / 2.5 BATH / 2,064 SQ FT
The perfect home for a growing family! The main floor is open concept, beautifully finished, and quite spacious. Upstairs, you'll find 4 bedrooms, including a generous master suite. The best part? The great yard with two-tiered patio backs on to old growth forest – a slice of country with the convenience of the city!
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