Buying During Pandemic   3 Ways To Protect: Yourself – Loan – Earnest Deposit

Buying During Pandemic 3 Ways To Protect: Yourself – Loan – Earnest Deposit

March 27, 2020 3 By Sebastian Fry


Hi, so there’s no doubt that by now the
covert 19 Cohen virus has impacted our communities all around the globe.
Physically, mentally, financially it’s been tough, but I’m always committed to
focusing on problem-solving, and sharing solutions to help us moving forward.
I’m Lisa Lad, I’m realtor here in Folsom California. I want to share three ways that buyers can protect themselves when they’re buying a home in
this pandemic environment. I want to start by
saying that it’s 100 % understandable that with these
uncertain times anyone who’s been thinking about
planning to purchase a home would take pause. I just want to clarify that
this video is not intended to convince you or anyone that you should buy a home
right now. This video is intended for those that are already on course or in
the process of buying a home. This was their plan. Even in this pandemic some
people are still in the need of buying a home because it’s either a job
transfer, retirement , they’re moving closer to parents or grandchildren or any
one of the other many life events that cause people to buy or sell a home. I
imagine that if you need to think about buying a home right now or wanting to
that you’re probably asking yourself questions like how do I see homes when
social distancing is a top priority you? What happens if I lose my job
during escrow and how am i protected? How can I protect my earnest money
deposit in case there are delays to closing as escrow based on the shutdowns related to the coronavirus. By the
time I’m done with the video my goal is to provide some insight to you
to these questions. I want people to have information to
make decisions through that lens then to make assumptions and miss out on you
know something that could be right for them. It’s all about helping people
raise their real-estate IQ. There are three ways that buyers can protect
themselves in a time like this. The first point I’m going to make is
about protecting yourself physically instead of being out and about so during
this time when you’re being asked to stay inside and distance yourselves. You
want to consider using technology to your advantage. This is also going to
be applicable once they lift the shelter in place here in Sacramento County and
across California and the USA. Just because once they lift this shelter in
place won’t eliminate the challenges of spreading and contracting COVIT-19 so
first thing you can start by asking your agent if there are any resources like
video walkthroughs or Matterport walkthroughs of homes that match your
home line criteria. A matterport is a 360-degree camera that provides an
explorable layout of the home so you click on there’s little circles in the
program and it will take you down the hall, into the bedroom, into
other rooms and etc. You can explore at your leisure. Of course
nothing beats being there in person, but there are also services like
FaceTime Facebook video or zoom that allow for video conferencing
capabilities so that you can talk with your agent, and your
can walk you through the house while responding in real-time. You
could see the different aspects of the house that aren’t apparent in the
listing photos. The best part about these services is that they’re free and
you don’t have to run across town or fill up the gas tank. This is going to
allow you to preview properties that you’re most interested in
but from the comfort of your home and the safety of
your home. This allows you to eliminate properties that don’t
suit your needs without having to leave home, and gives you more time to
concentrate on the contenders. I’ve actually helped other buyers virtually
house-hunt from other parts of the country who needed to purchase homes
remotely. It worked well then and this same level of service will really
work well in this time of social distancing. One of the questions will be is the seller allowing for showings
or if your Realtor is able to or is willing to go into the home to do the
video tour for you. Now, I can tell you that I have in place a strict health and
financial vetting procedure for sellers & buyers to reduce unnecessary
exposure to the seller and agents. Ask your agent if they can
provide a 360 recorded tour. I use a 360 camera when I tour the property and
I’m able to walk through the house and as I go – point out different conditions
that I see. I can open the closet doors and the pantries that you wouldn’t see
in still pictures. Then the 360 tour is uploaded to a portal that you can
tour at your convenience. Now let’s move on to how you are
going to safeguard your earnest money deposit. That’s an important one! Let’s
see you lost your job while you’re in contract to purchase a home or maybe
the lender can’t fund in a timely manner due to changing lending environment or
unforeseen demands due to the pandemic. Well it’s all about having your loan
contingencies work for you. You might be asking what is the contingency? well
the best way I can describe it is a contingency is having the contractual
right to cancel escrow and still receive your earnest money deposit back.
When writing up your offering you can make your loan contingency span the
entire length of your escrow, or you can have your Realtor write an addendum to
your offer that states the loan contingency will be in effect until the
loan is funded. Now to address the loss of a job and other situations due
to the coronavirus. I’m gonna share is actually hot off the presses.
The California Association of Realtors – those are who create the
forms that we write our offers on – created a new Coronavirus Addendum, Form CVA. It addresses the loss of income and other related issues that could possibly
impact escrow either being cancelled or delayed due to
the unforeseen as it relates to the pandemic. This addendum is part of
your offer to give you extra protection. If both the buyer and the seller agree to the addendum – it states he buyer and seller would agree
to extend escrow up to 30 days, or you can also determine any other number of
days that’s agreeable by both parties. If the buyer and seller mutually
agree to the addendum and either the buyer or the seller could not perform due to what
are considered unforeseen circumstances related to the coronavirus then, either
party would be able to cancel the purchase agreement. What are the
circumstances? Any third party issues such as inspections, appraisal,
funding Title, escrow, county closure or delays. If
a third party is not able to do their job or it’s delayed, that would allow an
extension. If after that extension is up and you know you couldn’t still get
escrow closed – either the buyer or the seller could cancel the contract. In
all cases of the cancellation of this contract that is covered under the
coronavirus addendum the buyer will receive the earnest money deposit back minus
any cost incurred by the buyer . Keep in mind that the addendum was not
designed to allow a buyer or seller back out if it was like a little difficult or
if they were just a little nervous about what the future of the market was going
to hold. The intention of the addendum is to allow for a cancellation of the
purchase agreement in the event either buyer or seller is unable to close
escrow due to issues directly related to the coronavirus and to protect the
buyers earnest money deposit. These are the protections that the California
Association of Realtors have put in place. I want to say I am a realtor
and I cannot and it will not be able to provide legal advice to buyer’s or
seller’s. If you have any questions about your legal rights as it relates to
the things that I shared in this video, and as always, I
would highly recommend that you you speak to your legal counsel. So, the
buyers can protect themselves by 1) Utilizing technology for virtual home
tours. 2) Extend your loan contingency throughout the entire escrow process.
3) Using the coronavirus addendum to prevent loss of earnest money and
protect against delays in case they have to cancel escrow due to the coronavirus.
That applies to sellers as well. I hope you’ve enjoyed this video and it was
helpful. I wanted to take a moment to invite you to check out the description
for some helpful resources. They’ll be in a link that you can click to download
info an guide that will include tips and checklists to make for planning for
your move a little easier. I know it might seem a bit hard to believe that
but especially in this case it is never too early to start planning. Like I said especially now. If this is something that you liked please like
this video if you’re watching on YouTube.
I know I’ll be posting this everywhere but if you’re on YouTube click that
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videos about real estate. I do that each week. If you’re not watching this
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always these videos are for people everywhere but if you are looking to make a move in
the Sacramento County area I would be happy to be a resource for you. You
can find my contact info in the description below. Be smart and stay
safe out there. I’ll see you in the next video. Stay safe.