Record-low mortgage rates have helped put more Americans in a homebuying mood in recent months. But with the coronavirus still spreading, many sellers are keeping their social distance.
About 6% of homes that went on the market in July held open houses within the first week, according to real estate brokerage site Redfin. While that marks a rebound from a rock-bottom 1% in April, it’s way down from 16% last year.
“It’s still risky to allow groups of strangers into your home,” says Redfin chief economist Daryl Fairweather. “As a result, more homebuyers have been exploring the world of virtual tours and 3D walkthroughs.”
If you’re looking to hook an ultra-cheap mortgage rate and buy a home, get ready for some changes to the traditional open house — or be prepared to attend a virtual tour.
Some sellers are open for business
Some state and local governments banned open houses altogether in the spring, but the events are making a slow return in some areas.
“Only recently have agents and sellers discussed the possibility of holding open houses,” says Corey Burr, senior vice president with TTR Sotheby's International Realty in Chevy Chase, Maryland.
They’re most common in the Northeast, where 12% of homes hosted open houses during their first week on the market, Redfin says. You don't find open houses as often in the Midwest (9%), the South (7%) or the West (4%).
Where demand is heating up, it’s just logistically easier to set up an open house rather than schedule multiple back-to-back viewings. Some areas are so hot that homebuyers are desperate just to get on waiting lists to attend open houses.
If you plan to attend an open house in this time of COVID-19, be prepared for some changes.
“We are noticing more open houses with specific instructions addressing the number of people allowed in a house at the same time,” Burr says.
Home shoppers will need to fill out a "visitor health screening questionnaire" before arriving to an open house and must keep face masks on the entire time. In some cases, the getup also includes gloves and shoe covers.
Going through all of that to attend an open house is probably a sign your house search is getting serious — and that it's time to start checking mortgage rates. Get quotes from at least three to five lenders, so you can feel confident you're seeing the best rates in the area.
Homeowners insurance can be a major expense, so you should begin pricing that, too. Go online and check rates from multiple insurance companies, to avoid overpaying for your coverage.
Open houses get a virtual makeover
In the current coronavirus era, most prospective homebuyers are starting their home search online and are attending virtual open houses, rather than the real thing.