This is not the same world we lived in 2 weeks ago. Everyday life is barely recognizable. But this too shall pass. The spring Westchester Real Estate market is not only ongoing but exciting times are waiting for us on the other side.
So whether you are searching for homes in Scarsdale, Real Estate in Chappaqua, or anywhere in between, NestEdge Realty can help you navigate this unique season.
But how do we see things shaking out in this Pandemic and Post-Pandemic World:
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Interest rates are at record lows. Buyers can afford more houses today than they could even a month ago. This is a positive for both buyers and sellers.
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The spring market, which is normally the most active and can result in 70% of the sales in Westchester County in a typical year will be compacted. Once the virus slows, look for an aggressive onslaught of new listings and a shortened period for buyers to lock in that perfect property for the new school year.
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While many call for sharply lower prices due to the change in asset values, at NestEdge Realty, we disagree. We reason that a fair portion of sellers may look to hold off on their listings, leaving inventory at an artificially low level. This means sharp competition for well-priced, mint-conditioned, or renovated homes. We believe that the market from 1.2 million on down, will remain quite strong.
With that in mind, how can a home buyer protect themselves while home shopping in such a unique market?
Fortunately, today brought us such an answer. NYSAR has proposed very strong protection language for home buyers during this period to address the risks associated with unforeseen issues as they relate to COVID-19.
“As part of the Statewide Forms Library initiative, NYSAR has developed the “COVID-19 ADDENDUM TO RESIDENTIAL PURCHASE CONTRACT.“ The addendum is an agreement between the seller and purchaser to permit certain extensions and the rights of the parties to cancel the contract in the event COVID-19-related issues make it impossible or improbable to close. In the addendum, the seller, and purchaser agree that the coronavirus (COVID-19) pandemic is impacting real estate transactions, transaction-related service providers, and consumers. There is a possibility that transaction-related service providers such as lenders, title/abstract companies, appraisers, home inspectors, and attorneys may be providing limited or no services as a result of COVID-19 issues. COVID-19 issues may include, but are not limited to: emergencies declared by the government, travel restrictions, mandatory closures or reduction of staff at transaction-related service providers, quarantine, exposure to or contraction of COVID-19.
The text of the addendum is simple. It can be used as an addendum to the offer being made by the purchaser or after both parties signed the contract. If the contract has already been signed by both parties, the addendum must be provided to and approved by the attorneys for the seller and purchaser.
Number 2 is OPTIONAL and must be checked if the seller and purchaser agree that if the purchaser loses their income due to a COVID-19 issue, either party may cancel the contract.
In all scenarios, the purchaser is given the deposit back.”
The addendum can be found here.
