Just about the same with other industries, real estate can’t get away with being affected by ‘shelter in place’ and the COVID-19 pandemic. Here are some FAQ:
However, there are other factors that might or might not affect your transaction from being able to close. Here’s a few snapshots we catched over the past few days:
Snapshot #1 / Off Market Listing Sold All Cash in 1 Day
We were getting ready to list our Client A’s gorgeous executive home just before ‘shelter in place’ hit us. Last weekend, seeing the COVID-19 situations, clients decided to list their house off-market. We started promoting actively through agent networks, social media, emails, calls, etc. And within ONE day, we accepted an All Cash offer that matches the client's expected price. We quickly went in contract and are looking to close in time.
Snapshot #2 / Expected Delay Closing due to ‘Shelter in Place’ and Refinancing ‘Traffic Jam’
We listed our client B’s beautiful modern condo in downtown SF and got sold off-market in just a few days! However, the transaction was not as smooth and easy. The appraisal was scheduled on Monday. Just before it was going to happen, SF announced ‘shelter in place’ and the appraiser decided to suspend their works. Buyer’s loan approval process isn’t able to continue without an appraisal.
On the other hand, since the mortgage interest rates are reaching record-low and FED cuts interest rates again, refinancing demand spikes and creating a huge line at the lenders. Most likely, this transaction is expecting a postponed closing.
What is the impact on our clients? They’re facing higher due mortgage because of the delay, which was mostly resulted from the pandemic. That is not what we want to see! However, we were thrilled seeing the news about banks offering to help customers affected by the pandemic. We quickly forwarded the information to our clients and helped them connect with their lenders. We were told today that the lender is granting extension and waiving late fees. Yay! We are so happy to see the relief from clients.
Snapshot #3 / Another Expected Delay Closing, as Buyers on this one
The pandemic is affecting everyone’s work, life and finances. We had another group of clients C who are buying their home. Unfortunately, due to the pandemic and ‘shelter in place’, the loan process was slower than usual. Two days before closing, we got informed by the lender that we aren’t able to close in time.
We called up the listing agent to explain the situation, and the seller understands a necessary delay at this very crazy time. We were able to negotiate a postpone on this case. Everyone’s relieved. We’re so happy to see the support during this time. We just closed it today, hurray!
Snapshot #4 / Offer on contingency of Coronavirus situation
The California Association of Realtors had released a ‘Coronavirus Addendum/Amendment’ on March 17, opening a window for buyers and sellers to negotiate over postponing and canceling contracts due to the world-wide COVID-19 pandemic’s unprecedented impact on the purchase. We were helping a buyer to write an offer, as it was one on one negotiation, we were able to have the addendum in the offer packet to guarantee our buyer’s interest.
What are We Doing
Yes we are all staying at home at this point, but we are still working actively from home. Let’s see what we’ve been working on over the last few days!
We also believe it is important to show our kindness at special times. We sent our text messages to our clients and friends to ask if they’re doing well. We helped our elderly neighbor to get groceries. We do not over hoard. We are always happy to give a hand to those vulnerable and in need.
Nothing is more important than our health and safety now, so let’s stay home safely for ourselves, our family and the community. While it is a pandemic time, we actually get to find a different angle to appreciate life, to cherish our health, our family, our home. Let us know what we can do to help. We’re on this together, and meanwhile we will keep you updated on the Bay Area real estate market!
Wen Guo RE Group
Wen Guo +1 (650) 817-5000
Jennifer Zhang +1 (650) 867-1128
Lina Yang +1 (650) 206-8881
Ecem Polat +1 (650) 556-4992
Mon Cochrane +1 (510) 934-9674
Team Office +1 (415) 857-1677