The Rule Against Showings and Open Houses Shouldnâ€™t HamperÂ Home-Buyingâ€¦
â€¦that is, if the listing agent does what Golden Real Estate has done for over 13 years â€” create a narrated walk-through video of each listing.
Our narrated video tours are just like a showing. They are live action videos which start in front of the house (just like a real showing) and then go through the house and into the back yard, pointing out features as we go.
Check out the video tours for any of our current listings atÂ www.GRElistings.comÂ to see what I mean. They really are like an in-person showing with the listing agent. For example, the video camera points down to the floor and up to the ceiling as I describe the hardwood floor or the sun tunnels which bring natural light into the homeâ€™s interior.
But, you say, youâ€™re not going to buy a home that you canâ€™t see in person.Â Right? You donâ€™t have to, because the rules allow forÂ inspectionÂ once the buyer has signed a purchase contract. Your visit (presumably with an agent)Â the very next day constitutes an inspection. That can be before you even have to deliver your earnest money check, since you may not even be under contract yet. TheÂ guidance from the Division of Real EstateÂ says, â€śhome inspections and final walkthroughsÂ after a buyer has signed a purchase contractÂ (emphasis added)â€¦ is also considered to be an essential part of the real estate transaction.â€ť The buyer is not under contract simply by signing a contract that has not also been signed or countered by the seller.
That â€śguidanceâ€ť from the Division of Real Estate was issued on April 9th and has not been updated as of April 18th, which is when I am updating this blog post.
However, Scott Peterson, general counsel for the Colorado Association of Realtors, maintains in aÂ video recorded from quarantine on April 15thÂ that the governorâ€™s executive order prohibits any â€śmarketingâ€ť that involves entry into a property â€“ no photos, no video, nothing at all â€“ without a contract in place. If thatâ€™s true, however, why isnâ€™t it reflected in the April 9th guidance and why hasnâ€™t that guidance been updated?
I tried Googling the governorâ€™s executive orders and looked at his web page onÂ www.colorado.gov/governorÂ and saw only two executive orders on other matters and no link forÂ allÂ his executive orders. So, for now, I lack evidence of Scott Petersonâ€™s claim and am relying on the April 9th guidance, which I keep checking for updates.
Therefore, a visit to the home by a buyer immediately after signing an offer to purchase the home does, in my opinion as a broker, comply with guidance currently in effect from the Division of Real Estate. Then, if the buyer is able to get under contract with the seller, he or she can schedule a second inspection by a professional inspector.
So, hereâ€™s a possible scenario: You look at the video tour of the patio home or the ranch-style luxury which you found atÂ www.GRElistings.com. I guarantee youâ€™ll have a pretty good sense of the home from viewing that video. Youâ€™ll experience the flow from kitchen to dining room, to family room, to back yard, etc., because you are being walked through the home. It is not a slideshow of different rooms, giving no indication of flow from one room to the next.
Letâ€™s say you call me or your agent to submit a contract and letâ€™s say that it is accepted by the seller. Youâ€™re under contract!Â The typical contract has a 7- to 10-day inspection period. You schedule your personal inspection with your agent (or me, if you donâ€™t have one) the next day, before delivering your earnest money check, which is typically due in 3 days.Â You can terminate immediately if you have buyerâ€™s remorse, and go back to looking at other houses.
If you donâ€™t terminate, you still have a week to hire a professional inspector and submit a detailed inspection objection.
What if youâ€™re a buyer, and thereâ€™s no such video for a house that interests you, but you donâ€™t want to sign a purchase contract?Â I believe youâ€™ve got three choices here.Â One, your agent (me, for example) could ask the listing agent to create and provide a narrated walk-through video. Second, I could preview the home for you since the guidance make no mention of banning previews, and shoot my own rough-cut video tour of the home, post it as an â€śunlistedâ€ť video on YouTube and send you the link. Or, third and perhaps best, we could use Facetime, Zoom, or another app to have you see what Iâ€™m seeing as I walk you through the house. (NOTE: Scott Peterson believes that previews and videos shot by anyone other than the seller are not allowed. I just donâ€™t have any documentation supporting that position.)
Therefore, while it may be inconvenient not to have an in-person showing of a listed home, thereÂ areÂ work-arounds that can make it possible to get under contract and confirm your interest in the property before you are fully committed to it or put down any earnest money.
Finally, Iâ€™d like to note that many listings are empty and vacant.Â I see no reason why in-person showings of those listings should not be allowed. I know that builders are letting buyers view their empty homes. Again, Scott Peterson maintains that empty homes cannot be visited either. Show us the actual orders from the Governor or guidance from the Division of Real Estate, Scott!
By Jim Smith,
Golden Real Estate