A flurry of agency activity was reported yesterday as the property market was officially reopened but some firms are remaining cautious when it comes to viewings and protecting staff.

The Government updated its home buying and selling guidance for during the pandemic yesterday, asking agents to favour virtual viewings initially but stating that sales could be progressed.

Rightmove said visits were up 45% on Wednesday morning compared with a day before and enquiries to agents rose by 70%.

The portal said 2,115 new properties were added in just five hours yesterday morning.

Agents also said there had been a spike in activity.

Andrews Property Group said it received 226 calls from people requesting viewings and valuations in the first hour of opening across sales and lettings.

David Westgate, group chief executive of Andrews Property Group, said: “The first hour on Wednesday offered hard evidence of the unprecedented pent-up demand in the property market right now.

“People’s lives have been on hold for the best part of two months and they are now rushing to get their moves back on track.

“There is a lot of talk that values will be hit hard in the months ahead and while that may apply to some areas where job losses are sadly high we believe the sales market overall will hold up well and that average prices will even be slightly up this time next year.

“The drastic steps the Government has taken to support the economy, coupled with record low borrowing rates and the huge bottleneck of people keen to move, will act as a glass floor under prices.

“The ongoing supply deficit will also continue to support the market.

“What’s vital now is that all estate agents adhere strictly to the social distancing rules and employ the highest safety standards to protect people viewing property, including through the use of personal protective equipment (PPE) where appropriate. Where possible, initial viewings should be virtual for the benefit of everyone involved.”

It has come at an opportune time, with the latest RICS Residential Market Survey for April showing the number of new survey instructions was at its lowest level since the series began in April 1999.

Additionally, 80% of respondents to the report said that they have seen buyer or sellers pulling out of transactions as a result of the pandemic.

The updated Government guidance said agents should encourage virtual viewings initially and then only allow physical visits by buyers with a strong interest, in which case social distancing measure must be followed.

The Government also said branches can reopen but visitors must make an appointment before entering.

Agents have been outlining how they will follow this, with some reopening immediately and others taking a more phased approach.

London agent Dexters said all its 70 offices would reopen and physical viewings will take place with agents wearing gloves and face coverings.

Prior to the viewing, all doors will be open and lights switched on, to help ensure that customers do not need to touch anything, and windows will be open to provide ventilation

Keys, cars and bikes used by Dexters’ agency staff will also be sanitised.

Marc von Grundherr, director of agent Benham and Reeves, struck a more cautious tone.

He said: “It’s great news that the Government has realised the vital role the property market plays in stimulating the wider economy and that estate and lettings agents are the ones facilitating this on the ground.

“Agents have been poised and ready to resume business since we entered into lockdown and the ability to do so will be warmly welcomed by those that have had to close offices and furlough staff.

“It’s important that we do so one step at a time and without compromising the health of our staff, our customers and the wider population but with the process of buying or renting now requiring very little face to face contact, agents should be able to adapt swiftly to this new working norm.

“We’ve already stockpiled a large amount of PPE on the advice of our offices in Asia who have been preparing for a return since January and while we can’t speak for all agents, we remain confident that we can service our customers appropriately and with the correct measures in place.”

There may also be fears from members of the public to overcome when it comes to viewings.

Iain McKenzie, chief executive of agency network The Guild of Property Professionals,  predicted consumers will continue using virtual viewings as a tool during their home search to narrow down one or two homes that they would want to visit in person, before making their final decision.

A poll of 2,000 people by the Guild found around two thirds would not be comfortable seeing someone else’s property in person, with 42% saying that they are not even comfortable with the idea of leaving their home.

Despite this, 62% said that they would want to meet the seller and 60% said they would want to meet the landlord before they bought or rented a property.

As well as ensuring staff are safe, buying agent The London Resolution also questioned whether properties would need to be repriced.

Peter Sheehan, owner and director of The London Resolution, said: “Not only have property prices been affected, but residential valuations will be affected too.

“Valuation surveyors will be far more hesitant to undertake in-person research, although the applicants and the banks will no doubt insist on it.

“Where they can, we anticipate many may choose to undertake desktop surveys instead.

“The result of this, as well as banks being more risk-averse in the current financial climate, is that banks will be more likely to only accept the lower range figure of the property valuation – making it more difficult for a buyer to achieve a good loan-to-value ratio, or indeed a mortgage at all.”

Read the Government guidance

Nir Kshetri, University of North Carolina – Greensboro

Many developing countries don’t have a working system of tracking property rights, and what they do have can be fragile and incomplete. In Haiti, for instance, a large earthquake in 2010 destroyed all the municipal buildings that stored documents confirming many small farmers’ ownership of the land they worked. Even years later, many farmers didn’t have proof that they were landowners. People are still fighting over their land.

This sort of problem – caused by natural disasters or not – is widespread, causing financial hardship for families in the developing world. Without an official, enforceable legal title to their property, people can’t resolve disputes over who can use which land for what – like who can farm where. They also can’t borrow against their existing assets to invest in their homes, businesses or communities. The value of those properties, and the lost economic opportunities for owners of assets without formal documentation, has been estimated at US$20 trillion worldwide.

From researching blockchains and cryptocurrencies for the past three years, I have become convinced that these technologies have the potential to fight root causes of poverty – including by securely recording property ownership.

I’m far from alone: Blockchain-based land registries have started up in Bermuda, Brazil, Georgia, Ghana, Honduras, India, Russia and Rwanda. The problems these efforts are addressing are significant.

Current challenges in land registries

Across the world, land registries are inefficient and unreliable – or even downright corrupt. In Honduras, some government officials altered the country’s land ownership database, stealing property for themselves – including beachfront getaways.

In many African countries, more than 90 percent of rural land is not registered. In Ghana, 78 percent of land is unregistered, and the country’s courts have a long backlog of land dispute cases.

In India, millions of rural families lack legal ownership of the land they live and work on. The lack of secure land ownership is a bigger cause of poverty in the country than the caste system or a high illiteracy rate.

Brazil has no single centralized land registry. Instead, about 3,400 private agents – called “cartorios” – register and check land ownership. The system is confusing, with many different documents created in different historical periods. Most land documents lack specific geographic references on property boundaries. Little wonder, then, that the system is plagued by corruption and double allocations – two formal documents each saying someone else owns a piece of land.

These fragile and incomplete property rights systems in the developing world can affect the entire planet. In Brazil’s Amazon rainforest, illicit land grabbers forge deeds and use violence and bribery to falsely claim ownership of property, often under fake names, which the locals call “fantasmas,” or “ghosts.” Then they clear-cut the rainforest, which has serious environmental effects. Having “improved” the land by converting it to pasture, these land thieves then are eligible to register as the formal owners of the land they stole. This cycle has repeated for years, contributing to widespread Amazon deforestation.

How blockchain-based land registries work

Using a blockchain system to record transactions could help solve these problems. A blockchain is a secure database that’s stored in a distributed – but connected – set of computers around the internet. It’s not susceptible to tampering, and every addition to the database must be digitally signed, making clear who’s changing what and when. So instead of a system with multiple conflicting documents, some of which may have been forged or altered, there’s only one record with a clear history of modifications, including who did what when.

Blockchain transactions can include all kinds of information, including geographic boundaries or serial numbers and an owner’s identity. In Ghana, for instance, the nonprofit Bitland runs a blockchain-based land registry system with a written description of each parcel of land as well as GPS coordinates of boundary points and satellite photos of the area.

A collaboration between a U.S.-based blockchain startup and a Brazilian real estate registry has created a record-keeping system for land in the southern coastal municipalities of Pelotas and Morro Redondo. Its blockchain database contains details like the property’s address, the owner’s name and contact information, zoning rules and a unique identification number for the property itself.

Blockchain can provide other advantages too. For instance, when transferring land in the republic of Georgia, the buyer and the seller go to a public registry house and pay a fee between $50 and $200. Moving this process onto a blockchain could drop the costs to no more than 10 cents.

Remaining challenges

Just starting a blockchain-based database isn’t enough to solve these problems, though. Data must be accurate when it’s entered, and records must include enough information to be authoritative about the properties they’re referring to. A new technological system won’t fix much in countries where it’s hard to determine the legitimate owner in the first place. Also, bureaucrats may object to new record-keeping systems that reduce their power, status and privileges.

However, in places where governments or others who create the systems are viewed as fair and impartial and run a transparent process, blockchain-based land registry systems could give many of the world’s poorest people their first real asset. Once they have straightened out complex, corrupt and contradictory registry systems, people can safely invest in, borrow against and truly improve their properties, helping lift themselves out of poverty.

Nir Kshetri, Professor of Management, University of North Carolina – Greensboro

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Berkadia today announced the recent financing secured for four multifamily properties: The Asher, The Bennington, Merrimac Crossing and Sundance at Baxter Meadows. Senior Director Jonathan Pratt and Associate Directors Maggie Burke and Rossana Bouchaya of Berkadia’s D.C. Metro office secured $148.2 million in combined financing for the properties, and the deals closed on April 30.

Based on our opportunistic approach we were able to secure all four of these transactions with favorable rates, significant cash-out and long-term interest-only. A lot of credit here needs to be given to our clients for seeing the opportunity in the market and making the decision to move forward quickly.“Our team was able to act quickly when treasuries started to fall significantly in early March,” said Pratt. “Based on our opportunistic approach we were able to secure all four of these transactions with favorable rates, significant cash-out and long-term interest-only. A lot of credit here needs to be given to our clients for seeing the opportunity in the market and making the decision to move forward quickly.”

Berkadia secured financing for the following properties:

The Asher is located at 620 N Fayette St. in Alexandria, Virginia. The Berkadia team secured the $50.59 million refinancing on behalf of Virginia-based Erkiletian Development Company. The 10-year Freddie Mac loan features a 69 percent loan-to-value ratio, six-years of interest-only payments and a 30-year amortization. This Freddie Mac refinance allowed the sponsor to pull equity out of the property, for the first time, at a historically low interest rate.
Developed in 2012, the 206-unit midrise property features studio, one- and two-bedroom floor plans with gourmet chef-inspired kitchens, in-unit washers and dryers, large closets and luxurious bathrooms. Community amenities include rooftop terraces, a dog wash and bike racks. Residents are afforded convenient access to the Braddock Road Metro Station and the shops and restaurants along N Patrick Street.

The Bennington is located at 1215 East-West Highway in Silver Spring, Maryland. The Berkadia team secured the $45.25 million in refinancing on behalf of Maryland-based Foulger Pratt. The 12-year Freddie Mac loan features seven-years of interest-only payments, a 75 percent loan-to-value ratio and a 30-year amortization. This refinance gave Foulger Pratt the ability to pull equity out of the property and maintain a low interest rate.
Developed by Foulger Pratt in 2004, and refinanced with HUD in 2012, the 223-unit high-rise property features studio, one- and two-bedroom floor plans with spacious kitchens, maple cabinets, full-sized in-unit washers and dryers, private parking and floor-to-ceiling windows. Community amenities include a business center, a resident lounge and a dog spa. Residents are afforded convenient access to the shops and restaurants along Georgia Avenue.

Merrimac Crossing is located at 159 Merrimac Trail in Williamsburg, Virginia. The Berkadia team secured the $21.38 million in refinancing on behalf of Maryland-based Frontier Financial, LLC. The 10-year Freddie Mac loan features five-years of interest-only payments, a 75 percent loan-to-value ratio and a 30-year amortization.
The garden-style property features one-, two- and three-bedroom spacious floor plans with dishwashers, walk-in closets and garbage disposals. Community amenities include a swimming pool, a playground, laundry facilities and grilling stations. Residents are afforded convenient access to Interstate 64.

Sundance at Baxter Meadows is located at 3705 Galloway St. in Bozeman, Montana. Berkadia’s D.C. Metro team, along with Senior Managing Director Chris Ellis and Managing Director Monica Newman of Berkadia’s Denver office, together secured the $30.96 million in refinancing on behalf of Utah-based Rockworth Companies. The HUD 223(F) loan features a sub 2.75 percent interest rate.
The garden-style property features one-, two- and three-bedroom floor plans with central air, wood-grain floors, granite countertops and private balconies. Residents are afforded convenient access to Gallatin County Regional Park and Interstate 90.

“In addition to these four, we are aiming to close another deal in early May 2020. This has been a Herculean effort on all five of these deals from Rossana Bouchaya and Maggie Burke—these deals never would have gotten done without them,” added Pratt.