Hi BP,

Though I'm tightening my criteria and making fewer offers as we wait to see how this unfolds, I want to be sure I'm covering my bases in any offers I make so I don't end up in any tight spots due to issues that arise from the coronavirus situation (e.g., delays in inspection, appraisal, financing, etc).  I've seen/heard folks mention here and there that they are putting in additional contingencies in their offers these days, but wanted to ask if anyone wouldn't mind sharing some details and/or experiences with what they're including.  I'm new-ish to investing so any and all advice is appreciated!

Thanks!

Originally posted by @Annchen Knodt :

Hi BP,

Though I'm tightening my criteria and making fewer offers as we wait to see how this unfolds, I want to be sure I'm covering my bases in any offers I make so I don't end up in any tight spots due to issues that arise from the coronavirus situation (e.g., delays in inspection, appraisal, financing, etc).  I've seen/heard folks mention here and there that they are putting in additional contingencies in their offers these days, but wanted to ask if anyone wouldn't mind sharing some details and/or experiences with what they're including.  I'm new-ish to investing so any and all advice is appreciated!

Thanks!

Hello Annchen, 

There is a COVID-19 contract addendum being used in New York purchase contracts. The addendum essentially allows purchasers and sellers to back out at any time of the contract... I spoke with one of our attorneys last night and he said - it basically makes the contract worthless.

On a good note, this will protect you should any major changes happen during the escrow period. On the other hand, it could give the seller of your deal a free pass to just walk out at any time for any reason.

Attached is a screenshot of the addendum.

Best of luck to you moving forward!

Abel

Thanks @Abel Curiel , it's super helpful to see an example!  Best of luck to you as well!