Deals fall through and agents struggle to sell over coronavirus measures

Open houses are all but off the table and some buyers are pulling out of deals

New York Weekend Edition /
Mar.March 22, 2020 02:00 PM
(Credit: iStock)

(Credit: iStock)

The coronavirus COVID-19 pandemic has all but completely upended the business of being a real estate agent.

Restrictions on large gatherings have put a hold on open houses and many buyers and sellers are understandably hesitant to do face-to-face business. Agents struggle to show homes and maintain social distancing measures, according to the Wall Street Journal.

Sean Nielsen, an agent in Seattle, said that prospective buyers were still willing to go to open houses over the weekend. He and his colleagues tried to keep groups of people away from one another.

He provided slippers wrapped in plastic and made a bleach-and-alcohol sanitary spray to disinfect homes before open houses. Now he’s started giving virtual tours.

The heads of many major brokerages are divided over whether to suspend open houses altogether.

Contracts are falling through as well. Compass agent Shana Rohde-Lynch, who works in San Francisco, told the Journal that a buyer pulled out of a deal because the purchase was meant to be funded partially with a stock sale.

Los Angeles broker Mauricio Umansky had a buyer pull out a deal because he wanted to keep some dry powder to take advantage of low stock prices.

New York agent Donna Olshan of Olshan Realty Inc. said she had at least one contract fall through as well.

“I have been in business for 40 years, and this looks like a cross between 9/11 and 2008,” Olshan said. [WSJ] — Dennis Lynch


Related Articles

arrow_forward_ios
Carmine’s battles landlord over unpaid rent. (Getty, Carmine's)

Carmine’s in Times Square sues landlord to stave off eviction

Carmine’s in Times Square sues landlord to stave off eviction
The “Raising The Bar Recovery Fund” will distribute a collective $3 million to eligible businesses across New York State. (iStock)

Struggling restaurants to get $5K lifeline from state

Struggling restaurants to get $5K lifeline from state
Clockwise from left: Donald Trump, Joe Biden, Airbnb CEO Brian Chesky, Opendoor CEO Eric Wu, Black Lives Matter protests (Illustration by The Real Deal)

For real estate, a year like no other

For real estate, a year like no other
From left: Tom Brady and Gisele Bündchen; Pharrell Williams; Sylvester Stallone and Jennifer Flavin; Jared Kushner and Ivanka Trump (Getty, iStock)

South Florida’s biggest real estate stories of 2020

South Florida’s biggest real estate stories of 2020
The Covid-19 vaccine is being distributed across the country, but it won’t provide an immediate cure for office landlords. (iStock)

Covid-19 vaccine won’t be immediate cure for office market

Covid-19 vaccine won’t be immediate cure for office market
Thor Equities’ 590 Fifth Avenue

Rising UCC foreclosures are “the tip of the iceberg”

Rising UCC foreclosures are “the tip of the iceberg”
Some restaurants and hotels are partnering up to offer private dining in empty rooms, in an attempt to survive the economic fallout of the pandemic. (iStock)

Hotels turn empty rooms into private dining suites

Hotels turn empty rooms into private dining suites
Related CEO Jeff Blau and Hugo Boss in Shops at Columbus Circle (Getty)

Related files “emergency” request for $5.3M in back rent from Hugo Boss

Related files “emergency” request for $5.3M in back rent from Hugo Boss
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...