COVID 19 & EFFECTS ON TRANSACTIONS
Let’s say you’re interested in buying a new home or in listing your current home. How does the impact of COVID 19 change your buying or selling experience?
There is a good measure of uncertainty as to the direction of the spread of the virus in the near term, as well as the duration of the virus’ effects in the long term. Let’s review what we know so far.
The COVID 19 virus is thought to spread mainly through person-to-person contact. So, the #1 preventive response is to avoid being exposed. Easy enough…sort of…right? That is why we are all ‘sheltering in place’, allowing at least 6 feet of separation, and washing hands…a lot. These practices essentially must flow into your real estate buying or selling experience.
Essential employees can conduct business but operate from home when possible.
Real estate agents are currently marked as ESSENTIAL. We’re able to provide services for listing properties, show buyers homes and all other activities necessary to facilitate a real estate transaction. What’s changed is how we conduct these services. Here are several new best practices you can expect in the process of buying or selling.
>> You may be asked about any recent travel or if you have experienced any of the symptoms listed by the CDC (fever, cough, shortness of breath).
>> Sellers and Buyers get to decide what level of contact they are comfortable with in showing or touring a home.
>> Open Houses are not advisable and most MLS and brokers have eliminated that option on listing platforms.
>> Pre-screening a home via technology like Zoom or FB Live. If you still are interested in the property you could schedule an onsite showing.
>> On site showings may require you to consider a mask, plenty of hand sanitizer, gloves, washing hands before entry and exit and potentially 1 person at a time through the home.
>> Sellers may request hands-free walk throughs only where they open ALL doors and turn on ALL switch lighting prior to a tour. Buyers and agents are being advised to not close the doors or turn off the lights.
>> In some instances, all parties may agree that the Seller conduct a virtual/live stream tour of the home.
>> Prior to any showings, Buyers are required to be pre-approved to purchase with a Lender. Period.
>> Once you have an Accepted Offer, both buyers and sellers will experience changes in the services surrounding a transaction. Here are a few:
o Title Company - closings are done separately; virtual notary services available in some markets
o Home Inspections - Inspectors can bring only 1 person at a time into the house; Seller's have a lot of say as to who can enter (it's there home afterall)
o Appraisals - drive by appraisals are happening in some cases
o Mortgages - government loan program can change quickly, longer interest rate locks among other things; stay in close communication with your lender.
Right now it appears to be business as usual if you wish to or need to make a change in your real estate situation. As your Realtor, I am ready, and prepared to guide and advise through these changes and will keep up on new possible ones to come. In the end, we are all asked to make changes that may end up being our normal business practices later. Maybe not a bad thing.
“I can't change the direction of the wind, but I can adjust my sails to always reach my destination.” -- Jimmy Dean
Here are a few helpful resources:
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