Real estate agents can no longer show homes in person in the city of Los Angeles, leaving determined buyers to submit offers sight unseen, while others suspend their searches.
Under a revised “safer-at-home” order issued last week by Mayor Eric Garcetti, real estate transactions are considered “essential.” Buyers can still buy, and sellers can still sell. But open houses are prohibited—and shoppers can no longer venture inside the homes they want to buy.
“It’s a big change,” says real estate agent Tracy King.
The California Association of Realtors had already advised agents to stop hosting open houses. But buyers were still viewing properties. They could go in one at time by appointment. They were screened via a health questionnaire. They donned booties and gloves.
“Before the new order, I was doing self-guided tours,” says agent Angela Acuff. “I would unlock the whole place, turn on the lights, open the closet doors, and I would meet the buyer outside, then they would go in by themselves. One time, I put [a bottle of] hand sanitizer on the steps outside.”
Most buyers now are resorting to virtual tours.
It’s too early to say what impact the new restraint will have on listing prices. But the economic uncertainty generated by the rapid spread of the new coronavirus has thrown cold water on LA’s once-hot real estate market. Anecdotally, agents say they’re seeing fewer new listings and less competition.
“It’s such a stark difference,” says agent Tracy Do. “We’ve gone from 300 mph to 1 mph.”
Clamping down on how homes are shown could further strain the market, but some agents say it’s absolutely necessary to protect communities, and they’re hopeful the market will quickly rebound as soon as the order is lifted. It’s set to expire April 19—but locally, health officials have urged residents to prepare for an extension.
Agent Kendyl Young says she’s trying to dissuade her clients from buying or selling altogether right now, unless it’s critical. And she bristles at agents who are trying to circumvent the new law.
“I’m seeing a lot of dumbass real estate agents threatening the health of our society,” she says.
Acuff says she went back and forth with an agent listing a vacant home in Northeast LA who had put a lock box on the door and was letting interested buyers come through, despite the order.
“It was her assumption that having a lock box was okay,” she says.
The mayor’s order doesn’t get into specifics about when, if at all, a buyer can set foot on the property, so it’s up to brokerages and agents to make those decisions. Various aspects of the home-buying process, from appraisals to notaries, are going digital due to the pandemic.
If someone has an urgent need to buy, Do says, they need to write an offer and be in escrow in order to get inside.
Young says she’s continuing to help a buyer right now who’s crammed into a small apartment with his family and in-laws. He found a house that he was willing to make an offer on without seeing it for himself, subject to an inspection, says Young.
“If that offer would have been accepted, I would have figured out a way to do an inspection,” she says.
Situations like these were tough before shelter-in-place orders, but now, she says, “it’s ridiculously hard.”
Comments
No surprise, but it’s going to be difficult to sell houses sight unseen
By mrjim1 on 04.07.20 2:17pm
And yet Metro is still running public transit which ridership now consists of the sick people and the homeless. The very homeless that are living among us in our city in a manner that is not consistent with the current public health order. But hey, at least a home buyer can’t do a self-guided tour of an empty home so we’re all safe.
https://losangeles.cbslocal.com/2020/04/06/mta-coronavirus-covid-goldstein-investigation-drivers/
By LADude on 04.07.20 3:18pm
"I’m seeing a lot of dumbass real estate agents threatening the health of our society," … an agent listing a vacant home in Northeast LA who had put a lock box on the door and was letting interested buyers come through. Walking through a vacant home is far safe than going to a local dispensary to buy marijuana. Just saying.
By LADude on 04.07.20 3:21pm
I suspect agents will find ways to work around this. who’s really there to enforce anything if a buyer and a seller agree to let someone come take a look at a house. I understand why they are doing this but it seems a little overboard when you consider how many people are passing through grocery stores picking things up, putting them back on the shelves etc. I would not sell a property right now if I didn’t have to and there will be plenty of pent up demand with very low interest rates when these constrains start to lift which will probably happen within 3 months or so.
By LAoneWay on 04.07.20 4:05pm
I can see not allowing open houses, but individual vetted showings by appt only? Not a real risk if normal protocols are followed. Certainly safer than going to a grocery store.
By kcp1 on 04.07.20 8:40pm
If two people want to make an appointment for a private showing and they take precautions (masks, gloves or sanitizer, distancing) then what’s the problem? Some people need to sell (for a range of reasons) and this overreach is going to completely kill what was left of the real estate market.
By MikeDLA on 04.07.20 6:04pm
Arbitrary and seemingly random acts of authority by our leaders. And this is just the beginning.
Adios liberty!
By Cream Of Toast on 04.07.20 8:37pm
Some of it’s pretty scary, just wait until the election and the games begin
By mrjim1 on 04.07.20 9:03pm
A lot of people are open to virtual showings, but buyers and renters want to see the place at least once before they sign on the dotted line.
I understand that health & safety are priority. There are ways to show properties while taking precautions. The best way to do this would be to have an agent wait outside or in their car. Allow one person to tour the property at a time. They would be required to wear gloves, masks etc.
The city won’t allow people to tour properties in a safe manner. Yet they allow people to wait long lines for grocery stores. You want climb over people for toilet paper? No problem..
Good Job.
By SourSkittle on 04.07.20 9:22pm
I’m a real estate broker in City of Los Angeles. Except Section 5T specifically states while some backup services to real estate are Essential (though I don’t see how notary services and home inspections will be handled): "Open houses and in-person showings of housing for lease and sale are prohibited."
By marsia on 04.08.20 7:50am
Garcetti must truly despise property owners.
By myislandXP on 04.07.20 9:27pm
This order is virtually illegal. I would almost consider challenging it in court. I’m dubious about the legality of preventing private and consenting parties from showing a home under the context of a bona fide real estate transaction, particularly if social distancing and other safety measures are employed (shoes off, sanitizer, masks, one-at-a-time, etc). It’s also going to be more rare during this time as sales have slowed. Certainly no open houses, but this smells of hysterics and grandstanding by the Mayor.
By cottenhampark on 04.08.20 12:56am
Except for certain services, we are supposed to stay home. If you think the mayor is just being "hysterics and grandstanding" then you must think the pandemic is not that big a deal.
By marsia on 04.08.20 7:52am
So how do you explain that recreational marijuana dispensaries are still considered "essential" and multiple people can go into the store at the same time? Maybe this is warranted, but given the how the order applies to other industries it is arbitrary.
By LADude on 04.08.20 9:21am
Marijuana Dispensaries support both medicinal and recreational. Compare to pharmacies and food/liquor stores, both services that are considered Essential.
By marsia on 04.08.20 10:14am
I think you missed my point. Real estate is more essential than pot or liquor and yet groups of people are allowed in those stores but a private non-guided tour or a vacant home is not permitted. This is an arbitrary rule.
By LADude on 04.08.20 11:53am
I’m all about real estate and making money but it is not more essential to the current crisis. The reason weed and liquor stores are essential is because people use medical marijuana as medicine for various health reason, if you think those reasons are BS that’s an argument for doctors to sort out not real estate commentators. Also, there are thousands of people that are alcohol dependent / serious alcoholics . If you were to cut off their supply of alcohol cold turkey it would result in tons of people going to the ER due to serious withdraw issues – this is the opposite of what they are trying to accomplish. This is a unique situation – the goal is not to flood the ER and people’s desire to exchange goods and services are secondary . Hopefully we are back in business soon – with maybe a buyers market for the first time in a decade ?
By Mr Balls on 04.08.20 12:34pm
Well said and very true. People who aren’t addicted to alcohol have no idea the hell that depriving them would unleash. You don’t want the ER overloaded with people going through DTs
By mrjim1 on 04.08.20 2:36pm
I hear your points and appreciate your reasoning, but it’s a shame that public policy (and opinion) is often a race to the bottom. Garcetti’s order was broad and resolute, and failed to take into account any situation where someome might be in the middle of an important real estate transaction (e.g. Maybe someone has been relocated for work and was looking for a home just before the pandemic… a process that can take time in the best of time, and is typically a huge investment). Against that backdrop, we’re discussing alcoholics and the science of withdrawals, leading to increased ER visits. It’s disappointing.
By cottenhampark on 04.08.20 9:25pm
Dispensaries = Lot of Tax $$ to the State. Thus essential!
By Ravid Dyu on 04.09.20 8:11am
How are you going to sue when the courts are closed?
By ahjushi on 04.08.20 2:48pm
Ha! Very true. I think the courts are hearing emergency or timely cases, but I concede you make a good point.
By cottenhampark on 04.08.20 8:57pm
Expanded post — Except for certain services, we are supposed to stay home. If you think the mayor is just being "hysterics and grandstanding" then you must think the pandemic is not that big a deal.
Keep in mind as you read this, I am a real estate broker whose income has dropped to ZERO, and I’m fine with that if we all work together so we don’t die.
By marsia on 04.08.20 7:55am
"Except for certain services" That is the issue. The order is all over the place as to what is exempt, and even for businesses that are exempt people are not following the social distancing rules. I’ve been to the grocery store and Costco and once inside, no one is staying 5 feet apart. And how is Home Depot still open for non-essential items and contractors? The private showing of a vacant house is far safer than going to an "essential" business. The issue is this is totally arbitrary.
By LADude on 04.08.20 9:24am
The pandemic is a big deal, but this isn’t a zero-sum situation. Certainly no open houses, but private home showings as part of transactions that are time-sensitive for financial or other reasons can easily be conducted safely and responsibly. Garcetti’s order was simply too absolute. That’s all I’m saying.
A private home showing, for legitimately time-sensitive reasons, can be a far safer experience than a trip to the grocery store right now. Meanwhile, I will say you are blessed to be able to weather a drop in income to zero. That isn’t the case for most.
By cottenhampark on 04.08.20 9:41pm