Real estate has certainly gotten a lot busier and that's great. Very quickly we've gone from quiet to almost boom time busy. I've heard about numerous multiple offer situations. A number of mortgage brokers have told me that everyone in their office is running flat out. Let's talk about two timing issues:
First up, when it's busy, everyone gets jammed for time. Sometimes, sellers don't want to give buyers sufficient diligence time. Why should they, their property is in high demand?
Without sufficient time buyers have difficulty getting inspections done or financing approved when the condition time is too short. In busy times, we all need more time, not less time to do our jobs. As a lawyer, I am tail-end Charlie, right at the end of the line. Many deals are closing seven or 10 days after I get paperwork. That's not enough time for me to do a good job for you and your clients.
I guess what I'm saying is that real estate is a team sport. All of us in the chain need sufficient time to do our jobs properly. And with COVID-19, and I'm sure you are all experiencing the same thing, everything seems to take more time. So, do your best to write your deals with at least a couple of weeks for inspections and financing and then at least three weeks to close. Two weeks is the lower limit before we are into 'quick close' territory.
Secondly, for closing day, coach your buyers that although the contract says possession is at noon, COVID-19 is causing delays in money transfer so noon is not guaranteed. Don't make rigid plans for noon.
For sellers, later closings mean payouts may be delayed to the next business day.
If we prepare our clients for the realities of buying and selling real estate during these COVID-19 times, all will go more smoothly.
Thanks again to everyone for their patience and professionalism.
Cheers,
Barry
