Real estate considered essential
By: J. David Chapman/April 2, 2020
When Gov. Kevin Stitt ordered the statewide Safer at Home order last week, real estate professionals, homebuilders, and property managers got extremely nervous and began contacting their city, county, and state representatives as well as their various associations that lobby and represent them. Those various associations such as the homebuilder association and Realtor association got busy presenting a case to the governor’s office for the essential nature of the work these professionals perform. Apparently, the governor was convinced and officially authorized “real estate and leasing services” as an essential service.
What does this mean to the industry? The most important aspect is that those real estate professionals who had transactions pending could get them to the closing table and sold. But in order to get them closed you must have an appraisal – so appraisers must be considered essential. You must have a home inspection – so inspectors must be considered essential. You must have a termite inspection – so the exterminator must be considered essential. All of these professionals must be on-site to do their job, which is problematic and takes a huge degree of care to protect everyone involved.
The transaction also requires insurance providers, lenders, and title companies. The insurance and lending piece can be performed virtually and electronically signed. The title company is a bit trickier, but parts can actually be done virtually. I sold a property last week and thanks to Stewart Title, as the seller, I was able to close my entire side of the transaction from my kitchen table. We used remote online notary to enable me to close from my home. I appreciated the opportunity to limit the risk of exposure, and still get the transaction competed.
Desperate times sometimes bring about creative solutions and approaches to business. While it is critically important to follow city, state, and federal guidelines to slow the spread of the coronavirus, there are ways to stay engaged with clients, show property, and lease spaces. In order to do this, we must pivot to a virtual experience, remaining effective and relevant to our clients. Products such as Webex, Zoom, and Skype are being used by property managers and real estate brokers to present homes to clients safely. Products such as Authentisign and DocuSign allow us to legally get clients’ signatures to make offers and lease property virtually.
J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).