Closing During COVID-19: It’s More Difficult Now, but it can be Done

COVID-19 has made the process of selling a home more difficult. Finding a buyer has become more challenging with the justifiable concern most people feel about unnecessarily risking exposure to the virus, and the current restriction of social distancing, but the act of closing has been made more difficult as well. This article will briefly discuss what to expect during the closing process.
First, and least surprising, closings are taking loner than they were pre-COVID-19. By the end of March, the average time to close was 60 days, up from 43 days in February and 26 in January. Part of the reason for this is that lending institutions have been swamped with mortgage refinance applications, which came in response to the historically low mortgage rates. Add the plethora of additional restrictions in place to combat COVID-19 (like the fact that most people are not working from home), and it’s easy to see that businesses are unable to function the same way they used to. 
Second, home inspections are typically required before a deal can close. In a normal scenario, the buyers will be present for the inspections and often several inspections are booked at the same time for the sake of efficiency. Now, some inspection companies are closed for the foreseeable future, and those that are still open and are often requesting that no one else be present at the time of their inspection so that contact can stay as limited as possible.
Third, lenders require that a property be appraised prior to closing; this is an effort to protect their interest in the property by ensuring it is worth what they are lending. Many lenders have allowed exterior-only appraisals or desktop appraisals in an effort to keep everyone safe. Unfortunately, these will take longer to process than standard appraisals. 
Ultimately, closing on a home is more difficult in these tough times. While in person recordings have been temporarily ceased, the National Association of Realtors (“NAR”) has pressed Congress to allow remote online notarization across the country, in an effort to reduce person-to-person contact while simultaneously speeding up real estate transactions during COVID-19. 
Ultimately, these restrictions are a lot like a parent’s tough love: sure the rules feel overbearing and interfere with your life, but it’s done to keep you safe. Homes are still being bought and sold everyday, we just have some new challenges in our path that we have to deal with along the way.
At the Chernov Team we understand that knowledge is power, and knowledge of how homes are closing in the COVID-19 era is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves with the most.