Serving Gogebic, Iron and Ontonagon Counties

Realtor struggles differ across border

By TOM LAVENTURE

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IronwoodIronwood real estate agents are saying their coronavirus shutdown experience differs from that of colleagues across the Montreal River. 

In Michigan the governor’s executive order for the duration of the COVID-19 pandemic does not consider the real estate industry as critical infrastructure. Real estate agents, brokers, and real estate service employees may not leave their homes for work and must conduct business remotely to the greatest extent possible, according to the order.

The Wisconsin governor’s order, by comparison, allows “professional services such as lawyers, real estate, and insurance agents to work but to deliver services remotely when possible.”

The revised Michigan order on Friday did not lift any restrictions on the industry either 

“I understand the safety aspect and it makes good sense,” said Mark Silver, partner, agent and owner of Silver Properties in Ironwood. “But the thing is, we can still get people in the houses here using social distancing, and many times the house is vacant.”

It’s frustrating when people call and want to look at a house and have to be told nicely that the law forbids that at this time, he said. They understand, but they’re ready to move and there is a “pent up desire” among people looking for homes right now.

For the realtors who already have a Wisconsin real estate licence there are options, he said. Those who don’t have one would like to use the shutdown time to take the Wisconsin exam but it’s not being offered right now, he said. 

“If the shutdown goes on indefinitely people are going to be crabby,” Silver said. “Buyers want to buy and sellers want to sell and it’s a frustrating time.”

While it would be nice to see the real estate industry back at work, it is important to trust that the right people are making those determinations with all the information at hand, Silver said. It’s smarter to “trust the powers that be” at this time, he said, the state capitol protest of the Stay Safe, Stay Home order was not a good way to express those grievances for congregating such a large group in violation of social distancing, he said.

“I don’t know that is the way to get your point across,” Silver said. 

Until there is a change the real estate industry will continue adapting to change, he said. All of the people involved in the process of a home sale are learning to use video conferencing software and other electronic communication, he said. 

At the end of the day, however, people miss getting together, Silver said. It is exciting to use social media to keep in contact with the family, church family, and coworkers but the screen doesn’t replace being “belly-to-belly and talking in person.”

“People miss the interaction with other people,” he said. “We can do distancing but it’s not the same as coming over for dinner and hanging out.”

Nancy Zak, owner of Zak’s Realty in Ironwood, said it’s a struggle and considers the differences in the shutdown order from Wisconsin just a mile away as a real disparity. She is licensed in Michigan and Wisconsin, but said she there hasn’t been a clear answer up to this point if she can show properties in Wisconsin as a Michigan resident.

Home inspectors are included in the financial services section as an exemption and only if there is a purchase agreement in place that requires an inspection as a condition of closing. The potential homeowner will have to waive a walk-through or wait until the order is lifted.

Realtors have properties that are in various stages of a sale or closing when this all started, she said. But it’s not permissible to get photos, put up signs or show listed homes even when they’re not occupied by an owner.

The homeowner can perform some of those duties, but that is what they hire the realtor to do for them, Zak said. The homeowner can do room measurements and put together photos and video but not everyone has those skills, she said.

“It’s just really a hurdle for us in this area and in many areas,” Zak said.

One out-of-state buyer changed her mind about moving here when the shutdown started out of fear of the COVID-19, she said. Another out-of-state individual wanted to sell the home of a parent who passed away here but no one could access the residence in his absence.

The biggest months for real estate in the area are March, April and May, Zak said. People want to identify a property in the spring to go through the two-month loan process in early summer to be able to move before the school year starts in the fall, she said.

The Michigan Association of Realtors has created a set of guidelines they feel will allow the industry to operate safely for the duration of the pandemic. The letter was sent to Gov. Gretchen Whitmer.

“We can accommodate guidelines to stay safe with social distancing,” Zak said. “Hopefully, the restrictions will change soon so that as an industry we can operate.”

If the shutdown order expires before June, then most of the showings will happen at the height of summer, Zak said. Homeowners considering a sale should use the stay safe, stay home order as a time for deep cleaning and sprucing up the yard. Potential buyers should use the time to get a pre approval from a lender so that the process can start as soon as they choose a property, she said.