COVID-19 and Real Estate Transactions in 2020
UPDATE: As of 11/20/2020, the Governor's UPDATED PUBLIC HEALTH ORDER still deems real estate a critical business. As such, showings are allowed as long as REALTORs and real estate agents adhere to the health restrictions previously outlined for all aspects of real estate transactions. Erickson Realty is proud of the Colorado Association of REALTOR's efforts to recognize housing as a critical part of the state's economy, and anyone interested can read CAR's letter to the Governor HERE. With that said, not much has changed with regard to the information below other than the allowance of open houses under heavy restrictions (one family/party in a house at a time with contact tracing).
On the eve of the Safer-At-Home orders, let’s take a moment to discuss what we can expect in the world of Northern Colorado real estate.
From Stay-at-Home to Safer-at Home
On April 20, 2020, Governor Polis announced the Stay-at-Home order would be allowed to expire and a “Safer-at-Home” initiative would be established. The hope is to keep people vigilant about COVID-19 while attempting to minimize the negative economic impact felt across many industries, among them real estate. As of this writing, the formal "Safer-at-Home" plan has yet to be released in writing. However, based on counsel from several deft attorneys employed by the Colorado Association of REALTORS®, we have been informed of what we can expect the changes and guidelines to be in regard to real estate activity.
Exercising Caution
First and foremost, the governor’s address warned of treating the expiration of the Stay-at-Home order as a signal to conduct business as usual in any trade. There are many real estate brokerages that may; Erickson Realty is not one of them. We have many clients — buyers and sellers -- that have willfully kept themselves or their properties away from the market. During what is usually considered the busy spring season, our reluctance to show and list property "normally" has led to a massive drop in business, to be sure. Candidly, the type of clients that would embrace violating the law to get their house sold -- or to get a deal -- aren’t the clients we wish to attract.
Waivers
Many Northern Colorado real estate offices were quick to employ COVID-19 waivers that required execution prior to showings. These disclosures typically ask the same questions of the seller, the buyers, and the agents:
At best, these waivers open a discussion between agents and their clients. At worst, they promote a false sense of security and potential liability for all concerned. Either way, these forms are likely to become a fixture in the process for some time. We don't use them in our listings unless explicitly asked by a seller to do so.
We are happy to discuss any concerns our clients may have with these disclosures/waivers, the new COVID-19 addendum to the Contract To Buy And Sell, the health risks of showing or listing, or any other issues that may arise from the pandemic in general.
For physical showings:
For listings:
We will continue to employ the non-invasive tactic of virtually showing property as a first round, as we've been doing for years.
Working Responsibly for You
If this all sounds like common sense, it is. But unfortunately, we often feel like we are in the minority in terms of this type of conduct.
To summarize, we here at Erickson Realty believe there is a responsible way to work through a transaction while still doing our part to minimize the hazards inherent to the process of searching for and listing a property. We will continue to conduct business in a safe, legal manner while adhering to the REALTOR® Code of Ethics. Our clients, our customers, and the public in general can and will benefit.
Ask Us
If you have further questions, please reach out. We will keep our clients informed of changes to the guidelines as they arise. If you are currently working with an agent, we hope you all will help #DoYourPartCO.
On the eve of the Safer-At-Home orders, let’s take a moment to discuss what we can expect in the world of Northern Colorado real estate.
From Stay-at-Home to Safer-at Home
On April 20, 2020, Governor Polis announced the Stay-at-Home order would be allowed to expire and a “Safer-at-Home” initiative would be established. The hope is to keep people vigilant about COVID-19 while attempting to minimize the negative economic impact felt across many industries, among them real estate. As of this writing, the formal "Safer-at-Home" plan has yet to be released in writing. However, based on counsel from several deft attorneys employed by the Colorado Association of REALTORS®, we have been informed of what we can expect the changes and guidelines to be in regard to real estate activity.
Exercising Caution
First and foremost, the governor’s address warned of treating the expiration of the Stay-at-Home order as a signal to conduct business as usual in any trade. There are many real estate brokerages that may; Erickson Realty is not one of them. We have many clients — buyers and sellers -- that have willfully kept themselves or their properties away from the market. During what is usually considered the busy spring season, our reluctance to show and list property "normally" has led to a massive drop in business, to be sure. Candidly, the type of clients that would embrace violating the law to get their house sold -- or to get a deal -- aren’t the clients we wish to attract.
Waivers
Many Northern Colorado real estate offices were quick to employ COVID-19 waivers that required execution prior to showings. These disclosures typically ask the same questions of the seller, the buyers, and the agents:
- Whether they’ve traveled out of state in the last two weeks
- Whether they know they had the coronavirus or had been around someone who did
- In some cases, whether they agree to hold certain parties harmless if another became sick
At best, these waivers open a discussion between agents and their clients. At worst, they promote a false sense of security and potential liability for all concerned. Either way, these forms are likely to become a fixture in the process for some time. We don't use them in our listings unless explicitly asked by a seller to do so.
We are happy to discuss any concerns our clients may have with these disclosures/waivers, the new COVID-19 addendum to the Contract To Buy And Sell, the health risks of showing or listing, or any other issues that may arise from the pandemic in general.
For physical showings:
- No more than three people TOTAL will be allowed in a property.
- Only parties to the contract may attend showings.
- Obviously, no overlapping showings or open houses are allowed.
- Strict adherence to social distancing will be maintained.
- The wearing of masks is also required.
For listings:
We will continue to employ the non-invasive tactic of virtually showing property as a first round, as we've been doing for years.
Working Responsibly for You
If this all sounds like common sense, it is. But unfortunately, we often feel like we are in the minority in terms of this type of conduct.
To summarize, we here at Erickson Realty believe there is a responsible way to work through a transaction while still doing our part to minimize the hazards inherent to the process of searching for and listing a property. We will continue to conduct business in a safe, legal manner while adhering to the REALTOR® Code of Ethics. Our clients, our customers, and the public in general can and will benefit.
Ask Us
If you have further questions, please reach out. We will keep our clients informed of changes to the guidelines as they arise. If you are currently working with an agent, we hope you all will help #DoYourPartCO.
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Thanks for reading,
Crip Erickson Broker/Owner, Erickson Realty REALTOR® |
UPDATE, 4-29-2020: The Safer-At-Home plan will be in effect until May 28th, 2020. At this point, the restrictions are very similar to what we had projected above; however, all listings must have the touchable surfaces sanitized between showings. Gloves and masks are to be offered if available, but we here at Erickson Realty are making sure anyone showing our listings will be wearing masks and that they are of course adhering to the other regulations. Click the link below to read Public Health Order 20-28.
| pho_20-28_safer_at_home.pdf |
You can also view the Colorado Department of PH&E's dashboard here: https://covid19.colorado.gov/data/covid-19-dial-dashboard