It’s no secret that COVID-19 has sent businesses scrambling to adapt to the new normal, creating innovative ways to keep their businesses afloat.
With a tight market and pent-up demand, the real estate industry is one business that has hardly skipped a beat despite stay-at-home restrictions, thanks to some ingenuity on the part of local realtors and lenders to keep their commissions coming, borrowing a page from takeout restaurants. It’s called the “curbside closing.”
“I’ve seen a lot in my 17 years, but never anything like this,” said Lynn native Regina Paratore, a ReMax broker based in Peabody. “I had two closings last week and both were conducted in parking lots. They were seamless. It’s hard because I’m a people person and when my buyers finally have their dream home, I just want to hug them, but we can’t do that anymore.”
Wendy Carpenito, broker and owner at Saugus-based Carpenito Real Estate, Inc., said there are no more “closing table” closings. Instead, documents are emailed to clients and signed via Facetime. Great care is taken at curbside closings with everyone wearing gloves and masks. An added safety measure is all pens are dipped in alcohol-based sanitizer.
“The most disappointing part is that we are not able to congratulate everyone,” Carpenito said.
Lynnfield attorney Jeff Stelman of Stelman Law says his firm no longer allows brokers, sellers or sellers’ attorneys at curbside closings. Instead, documents are executed the night before and overnighted. On closing day, Stelman walks the buyers through the documents via telephone with the parties remaining in their vehicles.
“My firm is focused on limiting personal contact to the greatest extent possible, while still delivering a thorough closing experience to the buyer safely,” said Stelman.
Curbside closings aren’t the only changes in the industry.
There are no more open houses, a tradition of 100+ years.
Carpenito says her firm stopped having open houses in early March to keep its agents and the public safe, adding that Medford has gone one step further suspending in-person showings of occupied properties.
Over in Lynn, Joan Regan of CENTURY 21 Tradition, has taken a cautious approach and is showing vacant properties only when possible.
“We are asking people to hold off for a couple of weeks if they are able as showing an occupied home is too risky,” the Lynn resident said. “I’ve been doing this for 40 years, and we are not taking any chances. We have a lot of active properties and properties in the pipeline, but we just need to take a step back and be patient.”
Marjorie Youngren, the top broker at Lynnfield-based William Raveis Real Estate, said her firm uses ZOOM conferencing and virtual walk-throughs in conducting market analysis and staging. Her firm asks owners to vacate their homes for four to five days for added safety. All homes are shown by private appointments. Masks, gloves and booties are mandatory. Social distancing is observed.
Youngren said her office is flooded with showing requests, adding that one Lynnfield property recently generated 25 requests its first 24 hours on the market.
“The market is so tight and there is no inventory, but the buyers want to see properties,” she said. “Safety is our first priority. Yes, some things are slow coming on the permitting side, but we are trying to do as much on the front side as possible.”
An added challenge arises when buyers lose their jobs after signing purchase and sale agreements. Stelman said additional language is being written into purchase and sale agreements that allow either party to postpone closings if they are unable to perform due to CORONA-19.
The final piece in the closing puzzle is the Essex County Registry of Deeds, which turns out to have been well positioned to meet the challenges posed by the pandemic with electronic recording. The building closed to the public March 23, but drop-off and pick-up bins have been placed outside the door for walk-in transactions.
“Most of our business is done electronically and has been for a long time,” said Register John O’Brien. “Very few of our transactions are walk-in, so we are in great shape,” adding that business is up 13 percent over last year at this time (January-April).
