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ON BUYING A HOME DURING THE COVID-19 PANDEMIC

OFFER ACCEPTED? NOW WHAT?

by Michael H. Wasserman


The two-bedroom, Lakeview condo seemed huge when Meg and Cary first moved in as newlyweds 10 years ago. That was two dogs and two daughters ago. Before the stay-at-home order. Before COVID-19. The small house movement may be “a thing,” but Meg and Cary are living proof that small houses are not all that they are cracked up to be. Especially now that they have all been cooped up together for the last three weeks. Every useable surface is covered by school projects, team equipment, pet toys, and kid toys. Meg laughs to herself nervously. “I guess everyone’s home must feel small by now but there just isn’t enough space here. Is this a dining room or a “school?” Is Cary working in the living room or his office? Am I sleeping in my bedroom or my office”? The is once spacious home is getting smaller and smaller by the hour. Hopefully, Jan will call soon.

It’s Monday afternoon and Meg has been trying all day not to think about it. She cannot help checking her cell phone again (the 10th or 12th time in the last hour) looking for a message – any message from their broker Jan. A call. An email. A text. Freaking smoke signals. Where are you???? As crazy as it seems, Meg and Cary submitted an offer to buy their dream home last Friday. Yes, in the midst of the pandemic. They are waiting (impatiently) for feedback from the Seller. The wait is excruciating. Meg cannot take much more of this.

The stakes are high. We know how the hard waiting can be. We appreciate how much is on the line for our clients when they are buying and selling real estate. 

For Meg, this really is the house. It was one of the first Meg asked to see so many months ago. Meg knew from the moment she laid eyes on it. In fact, of all the 70+ houses Meg and Jan toured before the stay-at-home order, it remains her favorite. Too expensive back then. It went under contract weeks ago. Suddenly, it is back on the market. That first buyer got frightened (didn’t we all?) and walked away. The house is now being offered at a substantially lower price. It is finally within a range of affordability. Still a reach for Meg & Cary but it’s manageable. If only Jan would call.

Meg stops obsessing about the house long enough to meet the delivery man at the door, grab the dinner she ordered for the family and starts the process of wiping down the delivery boxes. She feels terrible ordering in again but cannot focus enough to cook with all of the uncertainty right now. Too much on her mind. Too much to worry about. As she finishes, she sees a new notification from Jan. “Meg – call me back as soon as you get this. I have some wonderful news.” Meg calls back. “Good news, they accepted your offer. Super excited, I know how much you two love this place. There is just one little thing though.” Meg’s mind races. Jan pauses, and takes an audible breath - “The seller is willing to accept all of our terms but one – he just won’t make the sale contingent on selling your condo. They have another offer already as a back-up and he does not want to risk losing that one either.” Meg’s heart drops to her stomach as Jan continues, “I know these are difficult times, but I really think that you should grab this opportunity. Let’s get the paperwork signed in the morning, OK?” 

For Meg, the news is crushing. That “one little thing” is not so little. They can pull the purchase off if they plan carefully, hold to a tight budget and sell the condo first. They won’t have the down-payment without it. Especially now that the market has taken back so much of their savings. If the deal goes wrong, they certainly can’t afford to lose their earnest money deposit like Cary’s sister a couple years back. No home is worth that type of loss. Meg asks herself again, now what do we do?
Their condo is not even listed for sale yet. Meg was too worried that they would sell without a place to move to. Sure, that made sense at the time. Now, nothing makes sense. 

Dinner? Meg cannot eat. Sleep? Not tonight. Meg lies awake worrying about the earnest money, about the condo, about the virus. She loves the home but is second guessing herself at each turn. Meg’s mind races in a hundred different directions. Who is going to buy our condo in this market? What if one of us loses their job? What if one of us gets sick? Can we afford this if the stock market keeps dropping?  How can we protect ourselves?

Cary worries about the risk too but is more optimistic. Afterall, this really is the forever house. They will find a way to make things work. He re-assures Meg. They laugh, thinking they must be nuts to try and pull this off right now. The timing is crazy. Everything is crazy. But they would be crazy to pass on this house.

In the morning, Meg, Cary and Jan complete the contract paperwork, start their loan application and activate the condo listing. They will have six weeks to get the condo sold and closed. Jan tells them it will be difficult but not impossible. They discuss virtual showings and online marketing strategy.
Jan –good friend that she is, tries to keep Meg upbeat and laser focused. “First things first hon, find yourself a really good real estate lawyer. Not the cheapest off the internet – someone who was active during the last financial crisis. Someone who understands the risks you are facing. Someone that can help you craft the best strategies to deal with all of this. Jan offers Meg a couple of referrals and encourages Meg to ask around herself too.

Meg makes the call and hires her lawyer. She pours a cup of coffee and sits down on the sofa for a short rest. There is a lot of work ahead, but the lawyer offers a few really good suggestions that put her at ease. She feels good about the team she has assembled. They have the help they need to make this dream a reality. They really are going to get the forever house.

We have been representing Chicago area home buyers and sellers like Meg and Cary for more than 30 years. Client concerns are our concerns too. We know the ropes, and we are at your service.
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