Closings in the Age of COVID

Last week, one of my co-op deals closed, and not to brag or anything, but it felt like everyone was more impressed than usual. It is impressive because it is a very impressive property, of course.  But it was also particularly impressive because we closed in the thick of COVID.

We danced the game that was the Jackson Heights real estate market right before the pandemic hit: There was a passionate bidding war, lots of back and forth, conference calls, and a generational and/or technological divide between the practices of two attorneys making the contract. Then the shadowy, terse managing agents who send poorly scanned board applications, with maladroitly worded instructions.

But just days before Cuomo put the stay at home order in place, we had the appraisal for the mortgage. We were all nervous and jumpy around each other: the appraiser. the listing agent and me. By the time my clients got the commitment letter from the bank, everything was closed down. Only essential businesses could be open. My Elliman office had closed.  We had no choice but to submit the package 100% electronically.

It wasn’t a big deal, and what I liked a lot was that all the parties were open-minded about solutions. I already had DropBox anyway, so my clients felt good about the documentation being shared securely. We snail mailed the checks and that was that.

But what’s most exciting to me about this story of the electronic board package is this::  we really don’t need paper copies.  Co-ops that ask for more than one hard copy of every financial document a person has received for the last six months are being wasteful and irresponsible.  So, I really hope that can change.  Because being wasteful and irresponsible is not cool. All we need to do is read the news to see where being irresponsible gets you. 

All the procedures that had long been in place for closings now had to be abandoned and we were trying to figure out new rules. The board interview was via zoom. Nearly all the documents were signed electronically. There were a couple of hunts for notaries that were willing to sign documents. But so much was done virtually. Most of it. The co-op’s attorney didn’t want to handle a closing so we had to find someone else who would do it.  No one except the buyers, their attorney and the bank attorney were physically at the closing. Normally as a buyers agent I would attend the final walk through and the closing, but this time I did not because I wanted to respect social distancing practices.  

Social Distancing is extremely important right now. I don’t think it’s fun and its definitely not great for my business, but it’s necessary for us to do right by our communities.  I have heard of agents who are still showing occupied apartments on the DL, but that is not the right thing to do right now, especially in a place like Jackson Heights, which has essentially been the epicenter for the virus in NYC.  Showings need to be done virtually or if there are showings, the apartment must be vacant.  Masks must be worn.  Social distancing is imperative. 

All this to say, I am slowly figuring it out, and I’m getting ready to try to get back to work as best I can.  I will be finding out more very soon.  I have a very cute, vacant studio apartment in Jackson Heights that I am about to have photographed. It will be up on my team’s site soon.  I am working with some buyers, too. I will be curious to see what it is like to sell property right now.  I’ll be sure to report on that.