Tips for Buying and Selling Real Estate During COVID-19
You CAN buy or sell a house during Covid-19. Here are the basics.
The buying and selling process can still be done successfully and equitably during the current Michigan shutdown, but we’ve had to make some changes to our process to remain in compliance with the rules and restrictions ordered by the state. Here are the main things you need to know:
Moving is considered an essential activity, as people need to be able to maintain adequate shelter for themselves and their families.
Banking, inspectors, and title services have also been deemed essential, so buyers can continue to obtain mortgages and title companies, an essential third party in real estate transactions, can continue to close deals and record deeds.
The biggest hurdle in the process is that in-person showings have been prohibited. But not to worry! We have worked out a couple solutions for this.
For homes that are occupied, we are scheduling Zoom showings with the occupant, who is able to take the potential buyer on an interactive tour of their home.
Alternatively, if the house is vacant, we are accepting offers sight-unseen. This may sound absolutely bonkers, but it’s not, here’s why: Every purchase agreement (offer) has an inspection contingency clause that allows the buyer to terminate the contract if they are not satisfied with the condition of the home after an inspection. They could also choose to renegotiate the terms of the offer at that time, should they, for example, deem that the home isn’t worth as much to them as they thought in the first place. Property inspections are deemed essential, as long as they’re preformed by a licensed professional (sorry, uncle Steve won’t work), and the regulations allow for the buyer(s) to be present at the inspection. I just listed and sold this property last week sight unseen with multiple offers.
So, while making an offer sight unseen isn’t usually something that happens very often, in our current state, it’s the only way to comply with state law and purchase a vacant property. It may seem scary, but given the wide latitude a buyer has to cancel a purchase agreement during the inspection contingency, there is zero risk to the buyer if they are unsatisfied with the home or conditions of their agreement once they’ve seen it.
Read more about what we’re seeing in the market and where I feel things are headed here.