How to Buy a House During the COVID-19 Pandemic
The Governor's office has deemed real estate an "essential business" in New Jersey, recognizing that housing is a need that some can't postpone. Whether it's a need or a want to explore your next real estate endeavor, I'm here to support you in the safest way possible.
For now, this is how homes are being purchased in NJ among Coronavirus concerns:
Virtual Home Showings
"Virtual" showings are becoming widely available, including 3D tours, pre-recorded and live video:
While they don’t take the place of an in-person showing, they’re a great way to narrow down your top choices from the safety of your home!
To reduce exposure, some homeowners are requiring Buyers to take a "virtual tour" prior to allowing an in-person showing, ensuring it could be a good fit.
Others are exclusively offering "virtual tours" and/ or “virtual open houses” until circumstances improve.
I’ll provide you with every virtual tour available.
In-Person Home Showings
Many homeowners are only permitting “ready, willing & able” pre-approved Buyers to tour their houses in person. Additionally, you should expect the following:
Most Sellers (and Agencies) are asking visitors to sign a “Hold Harmless” Waiver, confirming no known illness or exposure to the Coronavirus within 14 days of the visit.
Agents & Buyers must adhere to social distancing guidelines,.
Face coverings are required in all homes. Gloves & shoe coverings upon request.
No-touch. I’ll lead lead the tour with gloves, Buyers are asked to refrain from touching any surfaces.
Offers
Now and always we're 100% paperless, utilizing secure e-sign technology. Once you find “the one”:
We’ll discuss the offer strategy (pricing, terms, etc.)
I’ll draft a digital Contract of Sale with your preferred terms and we’ll both e-sign the documents via my secure zipLogix Digital Ink portal.
If necessary, we’ll negotiate with the Seller and come to an agreement on the price & terms.
If accepted, the Seller & their Agent will e-sign the Contract & we’ll enter into Attorney Review.
Once the Attorneys agree on the terms, we’ll officially be “Under Contract” (typically 3-5 business days).
Home Inspections
Home inspections are a vital step and are typically required within 10-14 days of going Under Contract. This is what can expect during these times:
Many homeowners are asking Inspectors to sign a “Hold Harmless” Waiver, confirming no known illness or exposure to the Coronavirus within 14 days of the visit.
The Buyer(s) & Agents may or may not be permitted in the home, subject to Seller’s preference.
Some Inspectors are asking to perform Inspections alone. Or, with only one homeowner present.
Home Inspectors wear face masks, gloves & shoe coverings, as requested.
Inspection Reports are sent digitally. We’ll review together & draft a list of requests to be sent to your Attorney.
The Attorneys will negotiate requests in the form of repairs, credits or potentially pull out of the deal.
Mortgages & Appraisals
My trusted Lending partners are 100% operational, remotely. Guidelines, programs & rates are changing daily, connect with your Lender for updates. Generally, this is what’s happening:
Once we’re “Under Contract”, you’ll submit your mortgage application, processed using secure digital solutions.
After, or in tandem with the Home Inspection, you’ll purchase an Appraisal through your Lender.
Most Lenders are conducting digital Appraisals, using online tools in tandem with photos or videos provided by Sellers.
Some Appraisals are waived, some are "drive-by" only and very few are requiring in-person visits.
If for any reason the house doesn’t appraise for the sale price, there’s a few strategies that we’ll discuss.
Certificate of Occupancy (C/O)
Each town in NJ has their own requirements to obtain a Certificate of Occupancy (permission to live in a home), prior to any new homeowner occupying it. Right now, we’re seeing a few approaches:
Many towns are temporarily suspending inspections, instead requiring an Affidavit (written statement) signed by the Buyer & Seller confirming compliance. Then, a future inspection date will confirm the compliance. Attorneys will hold Seller’s money in escrow for Buyers to cover any potential costs associated with the future inspection.
Some are performing partial inspections, mostly exterior with only a “hazard” and fire & smoke interior inspection.
Very few are temporarily waiving them completely.
Call the Zoning or Building department of your home’s township to confirm current requirements.
Closings
In the Central NJ area, Title Companies provide a “Title Closer” to facilitate the Closing, along with your Attorney. At this time, you may expect one of these options for your Closing:
Option 1 - In office: Buyer, Title Closer & Attorney only, distanced by 6 ft, in face mask & gloves.
Option 2 - Curbside: Passing “wet sign” documents through vehicle windows, with your Attorney available by phone.
Option 3 - Online: Digital notaries have been approved in NJ. A Title Closer will confirm your identity, documents are signed in front of the camera & sessions are recorded. Then, you’re required to overnight the documents for recording.
Select documents typically requiring a “wet signature” may be e-signed prior to the Closing. Consult with your Title & Mortgage companies for availability & procedures.
