Let’s Talk The PEAD
As we head into a new month and a new season, let’s talk about what is new in real estate and how it is impacting buyers and sellers: the PEAD. We are sure by now you know that real estate has been deemed an essential service by the Department of Homeland Security as an integral part of our country’s critical infrastructure. But do you know how that looks in actuality? Here is a brief summary…
The largest industry change in the current environment pertains to how homes are shown. Open houses and broker tours are not allowed, but individual visits and private showings are available when all parties sign the ‘Property Entry Advisory And Declaration (PEAD).’ This form is not only legally required, but is part of the overall Prevention Plan that the California Association of Realtors® has outlined for agents. The PEAD must be completed by every person entering the property including clients, appraisers, inspectors, stagers, contractors, repairmen and even buyer’s agents for each home that they enter. Think one form per property.
Please let us know if you have any questions about how transactions look and feel today! We are always here to serve as your eyes, ears and feet on the ground in for East Bay real estate.
You may view a copy of the form in full HERE.
The key points include acknowledgement of ‘Risks of Exposure’, ‘Stay At Home Orders’, Representation & Agreement’ and ‘Agreement, Declaration & Assumption of Risk’.
While this may sound intense, there are two key things to note.
- First, the guidelines outlined and acknowledged in the PEAD are designed to demonstrate care for the health and well-being of all members of our community. While it may sound intense, it is also important for our industry to disclose any potential risks in the spirit of transparency, and provide alternatives for those who seek them – such as pre-recorded tours and live virtual showings.
- Second, completion of the PEAD form appears to be acting as a sign of true buyer interest; only those who are seriously shopping are completing the necessary steps to tour homes.
And interestingly enough, many Bay Area homes are receiving multiple offers amidst the active shelter-in-place orders.
Low inventory and pent-up demand can be a recipe for sellers success and buyer perseverance, as the concept of home is cooking up to be more cherished than ever!
Please let us know if you have any questions about how transactions look and feel today! We are always here to serve as your eyes, ears and feet on the ground in real estate.
GUIDELINES FOR THE VIRTUAL HOME BUYER – SUMMER 2020 – S.F. EAST BAY
Resources Used & Further Reading:
- The PEAD Form In Full
- CAR® Guidelines for Real Estate Best Practices During COVID-19
- FAQ: Industry Guidance on Showings
- Real Estate Best Practices Guidelines and Prevention Plan for Showings During COVID-19 – Stage 2 Expansion