Change seems to be the word that I’m most using these days, and rightfully so since within the span of three short months our lives have completely been turned upside down. For real estate, the changes have been staggering and many will be permanent, including everything from the way we purchase homes to the way homes are designed.
The virus has turned our lives into a virtual world; many work from home, go to school virtually and as it turns out, buy homes virtually. The traditional home viewing system is starting to be a thing of the past, just like reading real books and reading virtual books; some people still need to hold that book in their hands and others think it’s a waste of time. Since buying a home is generally the largest investment of most people’s lives, the virtual technology is being approached carefully. It may not be the right fit for first-time buyers who don’t have the homeowning experience to understand everything they’re looking at, but if you’re familiar with the area and don’t have the time or inclination to travel, it may be a godsend.
According to the National Association of Realtors, last year only 3.5% of buyers purchased a home without viewing it in person. But a survey done the last week of April by the NAR found that 31% of agents had at least one sight-unseen sale. As the technology moves along and becomes more user friendly and specific, more and more buyers are becoming comfortable with the idea of a virtual purchase. Among other new devices, there are virtual reality goggles being made available to buyers, a Marco Polo video app for virtual walk-throughs in addition to traditional pictures and videos. Even home inspectors are videotaping their inspections, giving the buyer a permanent record of the inspection with the ability to review it several times.
Another real estate by-product of the shutdown is the desire for less open floor plans. Remember how everyone wanted an open floor plan to bring the family together in one place, well maybe now there has been too much togetherness. After months of trying to carve out their own work and entertainment areas, families are renovating or building with an eye towards a private space for family members and a smaller family gathering location at the end of the day.
Kitchens in particular are important to families now more than ever since most meals are being cooked at home, requiring more storage and appliances, and this may be more than just a COVID necessity which will be phased out. Families are starting to see the benefits of gathering together for a real family dinner each night that’s more than just takeout pizza once a week.
Homeowners with the ability and funds are also building separate structures or additions to their homes for the permanent at-home workspace they anticipate for the future. Since right now we don’t know how or when schools and colleges will begin normal classes, having a study area separate from the living area of the home may be more of a necessity than a luxury in the future. And apartment dwellers are also trying to create hidden storage areas where they can hide their electronic devices when not in use, assuming their current arrangement may not be temporary.
Upside down is somewhat of an understatement considering what we’ve been living through. I’m convinced that when we look back at this year, we’ll see how virtual home purchasing and home redesign are two of the major changes to real estate that come out of this crisis. I hope the family dinner aspect sticks too; a lot of us grew up that way and it was a good thing. Stay safe.
