Home Buying in the Time of COVID-19

Speaker 1: [0:09] Hello, hello, and welcome to another episode of the Awesome in Seattle podcast. This is Christian Nossum with the Awesome Nossum Group, and we are doing this while in quarantine. Woo-hoo. Woo. Yeah.

Speaker 2: [0:22] Probably sounds a little different for all of y'all out there. Yeah.

Speaker 1: [0:25] We don't have our big fancy podcast set up this time, 'cause we're all doing it, uh, virtually. I'm actually sitting in my car, uh, connected to my phone, because that is by far the quietest place in my entire house, 'cause I got three kids and they're loud. Indeed. So, we're all in separate parts of the city. Uh, and we, uh, we're just trying to piece this together so you guys can stay up to date, and we can keep you in the loop on what's going on. Yeah. So, uh, I'll introduce everybody. So again, this is Christian Nossum, and, uh, I would say to my right normally, but- … I don't know who the heck's on my right. So, let's just, uh, let's just say we got Jason Saldarriaga.

Speaker 2: [1:04] Yep, as always.

Speaker 1: [1:06] As always. That's what he always says. Uh, we have the one and only Charlotte Reynolds.

Speaker 3: [1:11] Here I am.

Speaker 1: [1:13] Otherwise known as Charlotte. Uh, and we have SC, otherwise known as Sarah Kate Davis.

Speaker 3: [1:19] Hello, everyone. Sarah Kate Davis.

Speaker 1: [1:22] Woo. And the point of today's podcast is clearly there have been a lot of changes, uh, going on over the last few weeks. This little thing, not sure if you've heard about it or not, but it's called the coronavirus, otherwise known as COVID-19. I don't know about you, but I've gained my COVID-19 so far. It's like the freshman 15, but it's 19, 'cause I just eat all the snacks at home.

Speaker 3: [1:49] Oh, yeah. Yeah. I said that, like, two weeks ago. I was like, "The only thing that this quarantine is gonna make me is fat."

Speaker 1: [1:55] Yeah. Snack central.

Speaker 4: [1:56] Mm-hmm.

Speaker 1: [1:58] Snacks all day.

Speaker 3: [1:59] Yep.

Speaker 1: [2:00] Um, I saw a friend of mine, I don't know if he did it or someone else did it and he just had a photo of it, but the, he, like, had a, uh, note in his refrigerator that said, "You're not hungry. Stop opening me up- Mm. "… and looking for food. You're bored."

Speaker 4: [2:15] That is so smart. Yeah. That is really smart. I like that idea.

Speaker 1: [2:19] So the point of today's podcast is we wanna give you an update on where the market's at, uh, how and what we as real estate agents can do, um, what we're doing to keep you safe if you are out and looking at showings with us. Uh, there's actually been a few changes with loans. We wanna keep you up to date on that. And then, um, and then we'll also go over a quick market update, uh, just over the last week or so, just to get you up to speed. So first off, um, Charlotte, you wanna give us a, a quick rundown of before the stay-at-home order was put into place here in Washington, how was the market? Let's just go over that so we can kinda set the baseline of where we were, and then we'll go over what happened once the quarantine was put in place.

Speaker 3: [3:10] Yeah In my experience, it was a really, and I think in your guys' experience too, it was just very, very competitive. Um- Yeah … you know, we're writing offers and there are, you know, five-plus offers on houses. Um, and things were selling for a lot of money over the listing price. Um, and so yeah, that was, I mean, just, and really due to lack of inventory, I think. Um, so that's what I was seeing for the most part, and I think, like I said, you guys as well.

Speaker 1: [3:41] Yeah, definitely. Yeah, that was, that was the whole Seattle area market. Pretty much anything that was priced well or decent, and it was a decent house in a decent location, it was getting, it was getting bid up, and there were numerous offers.

Speaker 4: [3:57] Yep.

Speaker 1: [3:57] Yeah. For sure.

Speaker 4: [3:59] Yeah, I mean, we were still one of the strongest, um, markets in the country.

Speaker 1: [4:04] Yep.

Speaker 4: [4:05] So.

Speaker 1: [4:05] Exactly. And then we got listed as non-essential by the governor.

Speaker 4: [4:11] No.

Speaker 1: [4:11] And yeah, so that happened on Sunday, the… I don't know. Do you guys know what day that was? Uh, I don't. Give me a second. I can look it up. That would've been the 22nd. Sunday, March 22nd, we were listed as non-essential, which means basically we were not allowed to do anything other than working remotely from home. We couldn't even go to our office or anything like that. Everything was shut down for real estate agents. Um, that was kinda crazy, but also understandable. Uh, there was a lot of things going on in the, in the world, and that was a, not a bad idea to do. So that said, on, I believe it was either Sunday or Monday, the 29th or 30th, we were then considered essential again. Or was it the 20- 28th? It was, it was Saturday. Yeah,

Speaker 2: [5:05] it was the 28th.

Speaker 1: [5:06] Yeah. Yeah. Saturday the 28th. Saturday the 28th, we were now labeled as essential, and Sarah Kate, why don't you tell everyone what the restrictions that were put on us, even though we were called essential, what are we allowed to do and what are we not allowed to do?

Speaker 4: [5:21] Yes. So with this new designation as brokers being labeled essential, we are allowed to take buyers out to tour homes. We have to remain six feet apart per the social distancing guidelines, and we're only allowed to take one client in per t- or one client per showing, if that makes sense. So if there's a couple that are out looking at homes, we can only take one of them at a time. The other person has to wait in their car or outside just to kind of, you know, keep the less exposure.

Speaker 1: [5:56] Yep.

Speaker 4: [5:57] Also, um, another thing, we have to have appointments, so Yeah You can't just kind of say, "Hey, all right. Let's go." You have to make sure that there is an appointment available for you. And a lot- Yeah … I've seen a lot of brokers, uh, listing brokers saying to perma- to provide extra time for yourself. So if you think you're only gonna be in a house 15 minutes, make sure that you set, just to make sure there's- Yeah absolutely no crossover.

Speaker 1: [6:25] Then on, was it this Sunday, the 29th, or was it Monday? I don't know, either one of those days. Sometime earlier this week, 'cause who knows what day it is anymore. Um, that's when- I think it was the 1st. Was it the 1st? I forgot. Who knows. Anyways, at some point early this week, um, photographers and stagers were also finally deemed, uh, essential. So that came out, uh, partly as a really a big need. Um, not so much photographers, but stagers. There were homes that had closed over the last week and a half that had staging furniture in there that the stagers were not allowed to move out. Even though there was a new buyer in the house, they couldn't pick up their stuff.

Speaker 4: [7:14] Wild West.

Speaker 1: [7:14] So that was, yeah, that was posing some issues where, you know, you got a buyer that wants to move in, but the house is full of furniture that can't be removed. So-

Speaker 4: [7:23] And then a million people have probably sat on and touched and…

Speaker 1: [7:26] Exactly. Yeah, I

Speaker 3: [7:27] didn't even think about- Germ central … that side of it. Yeah.

Speaker 1: [7:29] Yeah.

Speaker 3: [7:29] I was just thinking about- Yes … the, you know, when you're listing a house and having to hire a stager, I didn't even think about them getting it out of there, so that's interesting.

Speaker 1: [7:36] Mm-hmm.

Speaker 4: [7:37] Yeah.

Speaker 1: [7:38] Yep. So all in all, pretty much every piece of the real estate puzzle has been deemed essential at this point. Uh, the title and escrow people were always considered essential, as were banks and lenders, 'cause they were both part of the financial sector, so they were already deemed essential. Then real estate agents/real estate brokers, and then finally stagers and photographers. So movers are also considered essential. Um, so pretty much the whole puzzle is for the most part put back together. Uh, I have heard conflicting information about house cleaners and, uh, construction workers, so I'm 100% not clear on that. I'm not sure if you guys are either. A little bit. But I'm not clear. Okay. What have you

Speaker 4: [8:29] heard? My, my friends that are in the construction industry, I have a few, they were sent home last Friday. Mm-hmm. So as far as I know, they are supposed to be staying at home and are deemed non-essential at the moment.

Speaker 1: [8:45] Yeah, and I saw one notice from the Northwest MLS saying that if you do an inspection and you find some things wrong, you shouldn't ask for work to be done because they are not allowed to do any work. You can't hire anybody to come out right now. Yeah. So-

Speaker 4: [9:01] Credit.

Speaker 1: [9:02] Yep, just only ask for a credit. So yeah, it's an interesting time. Um, every day is pretty much changing. Um, there's been a ton of change. So just make sure that, uh, you know, as, as buyers or sellers out there, you just gotta be nimble. Yeah. That's really all it is. We just gotta go with the flow. We can do what we can do. When things change, we can, you know, quickly pivot and, and go with it. So, uh, that's what we've been doing. I mean, I have three listings that are waiting to come on the market that we weren't gonna do anything with 'cause we couldn't take photos, and I really wanted to start doing the 3D kinda Google Street Tour, Street View, uh, tours of homes, adding that in addition to the HD video walkthrough, um, and professional photos. And I also wanted to add, uh, floor plans, which now more than ever, those, those are needed. Um, and without professional photographers available, we couldn't really do that. So now that they're finally deemed available, we are, I'm able to hire them and get them out there, and we can start putting some homes on the market. So it'll, uh-

Speaker 4: [10:16] Hallelujah.

Speaker 1: [10:17] Yeah, exactly.

Speaker 4: [10:18] I think we're also seeing a lot more serious home buyers-

Speaker 1: [10:24] Mm-hmm … Speaker 4: during this time because they've had to do their own research. They've had to, you know, Google Map, get on there, drop the little pin, and kind of tour the neighborhood that way. Yeah. A lot of them are doing drive-bys and kind of- Mm-hmm taking more time to get to know the neighborhood and the home before they do a personal, uh, walkthrough. So I think they're getting a lot more information upfront.

Speaker 2: [10:46] Yep.

Speaker 1: [10:46] Yep. I would agree. I've even seen some agents requiring, uh, before someone can even see a house, so if it's a listing of mine, I've seen some agents, let's say it's me, I'm not doing this, but let's say it's me. I would have a one-page addendum that says, "I have viewed the video tour. I have seen the Matterport 3D walkthrough of the house. I have read the seller disclosure statement. I have seen every single photo. I have reviewed the neighborhood as best I can via either Google Street View or satellite view or maps, and I still want to see the house."

Speaker 4: [11:27] Wow.

Speaker 1: [11:28] So before they can even get in the house or allow an appointment, they have to agree to all of those conditions first, which is, it kinda makes sense, and it really only allows completely serious buyers through.

Speaker 4: [11:40] Mm-hmm. Yeah.

Speaker 1: [11:42] So, uh, it's a, it's an interesting time right now, that's for sure. So, um What are we doing or what are you guys seeing in order to keep people safe at showings? 'Cause I know I'm personally quarantined. The only two people on our team that are showing homes are Charlotte and Sarah Kate at the moment. So what are you two seeing, uh, as ways to keep people safe?

Speaker 3: [12:07] Yeah. I'm seeing a lot of people that are… They're leaving, like, every door in the house open, and they're on to minimize, you know, what viewers have- You touch … to touch in the house.

Speaker 2: [12:20] Mm-hmm. We don't have to leave cards anymore- Oh, re- oh, I didn't- … for the time being. Yep … Speaker 4: people still are, and it's gross. I'm sorry. Yeah. So normally y- uh, as an agent, any time you enter a house as an agent, you're supposed to leave your card. They have kind of delay, you know, uh, put a end to that for the time being due to the virus. They don't wanna spread germs. Mm-hmm. But yeah, you'll see, like, a lot of the houses, um, they have, uh, sanitary wipes and, like, Purell and that sort of thing. Mm-hmm.

Speaker 4: [12:53] They're- Hand towels … trying their

Speaker 2: [12:54] best to,

Speaker 4: [12:54] yeah … hand towels, paper towels. Yeah. Which normally when a home is staged and vacant, there's nothing. There's not a paper product in sight. There's not soap anywhere. So I, and I've always- Mm-hmm … thought that's kind of weird and gross. I, I've personally always left a hand soap and paper towels underneath the sink so that if people need them, they can just, you know, kind of find them. But I think this might be good for all of us, just to stay healthier in general, to kind of mitigate spreading even the flu or just common colds. Hopefully that is a staple going forward.

Speaker 2: [13:28] Yeah. True, true. Would agree.

Speaker 4: [13:29] But yeah, I've seen a lot of signs on front doors saying there, there's sanitizer right inside. Please wipe your hands w- right before you touch anything in the house. Like, come in, cleanse your hands, then you can tour.

Speaker 1: [13:45] Mm-hmm.

Speaker 4: [13:45] Um, and a lot of- Yep … clients have, like, I personally carry wipes with me, and a lot of the clients I've been showing also have gloves or wipes. So people are being really, um, really safe, I would say.

Speaker 1: [13:55] Good. That's very good. Yeah. And I mean, we're not gonna pass any judgment. If you wanna see a house, and you wanna wear a mask, and you wanna wear gloves and- Do you. Yeah, you do you. Um, we're not gonna stop you or look at you weird. In fact, maybe we'll start wearing that stuff too if we can find any. So it's, uh, yeah, it's all good. So, um, we've been doing a lot of, uh, a lot of virtual tours as well lately. Uh, I know right before the quarantine hit, I had done numerous FaceTime video or Zoom video, uh, walkthroughs with buyers. And, uh, that is definitely a tool that we have at our disposal as well. Um, so say you're not necessarily wanting to go see the house in person, um, that's definitely an option that we can help you out with, so just let us know.

Speaker 2: [14:50] Hmm.

Speaker 4: [14:50] Yep.

Speaker 1: [14:50] Okay. Anything else you guys want to add to that about keeping safe?

Speaker 4: [14:55] I think that's good. Yeah.

Speaker 1: [14:57] Okay.

Speaker 2: [14:57] Everything's changing very fast. Who knows how this'll, you know, in three days, in a week, how this'll-

Speaker 4: [15:03] So true … Speaker 2: uh, evolve. Yeah. But, you know, for now We explained it pretty well.

Speaker 1: [15:10] Cool. All right, so let's move on to loans and getting a loan. So as I'm sure you've seen, there are a lot of unemployment numbers. I think it's over 10 million people over the last week have now filed for unemployment based on today and last week's reporting numbers. That is unprecedented, and it's insane. So because of that, uh, and because of a lot of other things going on with the world and the economy, uh, lenders are tightening up their criteria and requirements for getting a loan. Uh, FHA and VA loans, unless you're working with a direct lender, they're either some banks are just not doing them at all, or if they are doing them, they're making the requirements super stringent and almost impossible- Mm-hmm … because they wanna make sure that you fit the very, very, very small box that, that works for this. So, uh, if you are already pre-approved or pre-underwritten, it'd be smart if you're starting to get back into the market to just reach back out to your lender and verify that you are still good to go, that things have not changed or affected your loans. Um, now I did mention the fact that there are some lenders that are direct lenders, and their requirements aren't really that different. They've, they've had to bump up the lowest credit score from five 80 to six 20, but that is really about it. There's not that many more overlays or requirements that they're adding. So, uh, if anyone needs a recommendation on, on a lender that is still doing those, just let us know. We're happy to reach out and connect you. Um- One, one area that did get affected heavily are jumbo loans. So in King County, Snohomish County and Pierce County, that is any loan, not purchase price, but loan amount over $741,750. So basically 741, 742, $741,000, $742,000. Loans over that have really had the biggest, uh, I guess, changes occur to them. Uh, there's no more loans that are available that have or that are allowing less than 20% down payment. So often people were doing a 5 or a 10% down payment, um, and now that's-- those have pretty much dried up and gone away. Uh, numerous banks aren't doing jumbo loans at all that were pretty heavily involved in them, uh, even with a 20% down payment. They're just, uh, they're taking a break to see how things pan out. So, um, how this affects you if you're in that market price range, uh, I think we're gonna see a little less competition, and I think we're gonna see those home prices, uh, maybe stagnate for, for a little bit. Just kinda stay where they're at. They're not gonna go up nearly as much. I don't think there's gonna be as much competition and, uh, you could potentially get somewhat of a deal. So if you have a 20% down payment and you are able to move on something, I think you're gonna be able to see, uh, a little bit of a better deal moving forward. Um, one way people are getting around that is, uh, some lenders are allowing you to do, like, a 10% down payment with a loan amount at 741, and then doing a 10% second loan.

Speaker 2: [19:01] Huh.

Speaker 1: [19:01] Uh, so you're, you're still able to do, you know, a little bit of a loan, uh, or like a 90%… How should I say that? You're getting a loan up to 741, then you're doing a 10% second loan, and then your down payment is whatever's remaining. Uh, there's, there's p- there's some banks that are doing those. The interest rates aren't really that bad. I checked in on that last week, um, and they weren't that bad. They were in the 4s and 5s, so for those second loans, which is not that bad.

Speaker 4: [19:28] Interesting.

Speaker 1: [19:29] Um, yeah. So we have a client right now that they were planning to do a jumbo loan, and now it actually is cheaper for them to do that exact thing, you know, get a first loan up to the, the jumbo loan limit of 741, and then, uh, get a 10% second loan on top of that. So- That's a way to get

Speaker 4: [19:47] around it.

Speaker 1: [19:47] If that-

Speaker 4: [19:48] Mm-hmm.

Speaker 1: [19:48] Yep, exactly, and if that totally flew over your head, don't worry about it. We'll educate you more if, if that is your situation. So, uh, lastly, I'd like to give you guys kind of an update on the market over the last week since we've been deemed… It hasn't even barely been a week since we've been deemed essential, but, uh, it's been kind of interesting. I've heard, I don't know if you guys have i- in talking with other agents and stuff, but I've actually heard of buyers buying houses sight unseen.

Speaker 4: [20:20] Well, maybe that's why they're- Last week … flying off the market, only being on for- Yeah … like 10, 15 hours.

Speaker 1: [20:26] Exactly.

Speaker 3: [20:27] That's insane.

Speaker 1: [20:29] Yeah. Was that what happened to you, Sarah Kate, today? Like, you were supposed to show a house-

Speaker 4: [20:33] Uh,

Speaker 1: [20:33] it's, it was on for three- … this afternoon,

Speaker 4: [20:34] and then it went pending … it was on for three days. This was just the only day that clients could, uh, take a look at it, unfortunately. Um, but I have seen more homes go pending that have zero cumulative days on market than I have before.

Speaker 1: [20:50] Yeah.

Speaker 4: [20:50] It's pretty crazy. It's crazy. Mm-hmm.

Speaker 1: [20:51] They're flying. Yeah. Sellers are more open to accepting pretty much anything that comes in right now, versus waiting for multiple offers. So it's a, it's an interesting time.

Speaker 4: [21:03] Yeah, and I mean, people that are still really financially sound, you know, can move. Mm-hmm. And I think it just kind of… There are people that, um, that aren't, so they're getting the cream of the crop. Yeah. And they're getting to do, move on those houses that they really like, so.

Speaker 1: [21:21] Mm-hmm. Yeah. So to give you guys a perspective on kind of what's happened over the last week, and then to narrow it down to the last three days, in Seattle, we had, uh, over the last seven days, we've had 127 new listings, plus 43 listings that came back on the market. Now, there were numerous people that had their home on the market and took it off when the quarantine started, when the stay-at-home order was put in place, which makes sense. I mean, uh, there weren't a lot of buyers out there that were looking, 'cause we couldn't really look at houses. Yeah, very uncertain. So, yeah. Uh, so in total that would've been, uh, 170 listings that were somewhat new. Out of that, 161 of those went pending. Well, maybe not of those, but at the same time, 161 listings went pending. So we only had nine more listings than we had, uh, than we had go pending. So again, l- very low inventory very quickly being bought up. Uh, and then over the last three days, using these same numbers, we have 71 of the 127 new listings came on over the last three days. So that's a huge proportion- Yeah … of that. And then back on market, 32 of the 43 over the last week were just over the last three days And out of the 161 pending sales, 78 of those were over the last three days.

Speaker 4: [22:53] Now that we're allowed to go out and

Speaker 1: [22:54] about. Get that pickup. So.

Speaker 3: [22:55] Yep.

Speaker 1: [22:56] Exactly. Yeah. So what that's showing me, and I'm thinking you guys are probably on the same page as me, that's showing me that the market is still moving. Still strong. Mm-hmm. And still moving quick. Yeah, it's still strong, and we're gonna still see multiple offers on things for a bit. Yep. So.

Speaker 4: [23:13] I mean, I think, you know, with the low interest rates and why would you not? Why would you not take advantage of that right now? If you're ready to go and you have your financing in place, it's a, still a really good time.

Speaker 2: [23:25] Yep. Exactly.

Speaker 1: [23:28] Well, that is all I have. Anyone else wanna add anything else?

Speaker 4: [23:32] Stay safe and stay mentally sane, if you can.

Speaker 1: [23:35] Yes. Yes. Please. There's a, if you're missing seeing your friends, there's a great app called Houseparty. Uh-

Speaker 4: [23:42] I'm playing

Speaker 1: [23:42] it tonight. It is.

Speaker 4: [23:44] Yeah.

Speaker 1: [23:44] Yeah. I, uh, tomorrow's my birthday, and all I did was ask everybody to go on there and join me in a big Houseparty things. Fun. And it's, it's fun. It's cool. I've been, I've done it a few times over the last week once I found out about it, and it's just, it's kinda like a Zoom call, but it's also interactive, and they have games that you guys can play. So it's a fun way to, you know, have fun with your friends but not see them in person.

Speaker 4: [24:09] Yeah, after you told me about that app, Christian, I told all my friends, and we scheduled a little time to do it tonight. I can't wait.

Speaker 3: [24:15] Nice.

Speaker 1: [24:16] Cool.

Speaker 4: [24:16] That was dope.

Speaker 3: [24:16] I'll definitely be scheduling- Yep … one too.

Speaker 1: [24:18] It's… Yeah. It's, uh, it's a good way to connect, 'cause we all need that to stay sane. I

Speaker 4: [24:24] know, I miss my friends. True.

Speaker 3: [24:26] Yeah.

Speaker 1: [24:26] Yeah. So.

Speaker 4: [24:29] Womp

Speaker 1: [24:30] womp. Yeah. So, yeah, stay safe, stay sane, wash your hands, don't touch your face, stay home as much as you can. Yeah. Take it day by day. And, uh, and yeah, take it day by day. Be nimble. If you got any questions at all, don't hesitate to reach out. We are more than happy to meet with you virtually, uh, do phone calls, text, Zoom calls, uh, FaceTime- We have it all Skype, Google Hangout, everything you could possibly- Yeah … think of, we got it. So just let us know. We're happy to help out any way we can. And on, one last thing, actually, for any of the homeowners out there that are having issues making their mortgage payment- Please, please, please, there are options out there to help you. Don't just stop making your payment. Connect and call your lender. Whoever you make your monthly payment to every single month, call them and tell them what's happening, and they will work with you. Um, don't just stop making your payments, 'cause if you do, you're gonna get screwed. But if you call them and you work something out with them, they will help. Uh, there, there's a lot of, uh, there's a lot of help out there for you, and, um, and there's more and more, uh, potential, uh, plans and forbearance plans and things like out- that out there that are going to probably become nationwide, but so far are becoming either county or state specific. So, um, please, if you need help with that too, just let us know. We're happy to help you figure out what to do and who to call and stuff like that. So don't hesitate. Reach out. We're happy to help. All right?

Speaker 2: [26:08] All righty.

Speaker 4: [26:09] Until next time.

Speaker 1: [26:10] Cool. Until next time.

Speaker 2: [26:12] Bye.

Speaker 4: [26:13] Bye. Stay safe. Bye.