8 September 2020
Based on the latest Victorian Government announcements, it looks likely that the property market will remain on hold until at least 26 October (cases permitting) when regulations are expected to relax and ‘one on one’ inspections can resume.
Real Estate will still be operating in a restricted capacity when it finally reopens; however, it will at least allow some buyers/sellers, who are no doubt quite stressed at the lengthened lockdown, opportunity to buy/sell.
We think a number of homes could sell very quickly when the market reopens (possibly even after one inspection), as there are a number of vendors who have already purchased and need to sell. The motivation for a seller may also shift slightly and, while wanting their ‘best price’, they may also consider accepting the offer that provides the ‘best result’ – possibly a short settlement and unconditional offer.
There will also be some buyers wanting/needing homes as they have already sold.
For buyers, we think finance approval will be a major key to being able to buy after lockdown and we recommend you remain in contact with your bank/finance broker, to ensure you are ‘buy fit’ should the right property present.
For sellers, we think having a current signed section 32 statement and contract ready for re-opening on the 26th October is the most important thing to focus on, as without it the home cannot be sold.
There may still be some properties that sell during the extended lockdown. These include:
- properties viewed prior to the Stage 4 lockdown, currently being negotiated
- properties with no or limited value in the home (ie. land value/new home site/development site)
- properties purchased sight unseen
We do not encourage purchasing sight unseen. Purchasing a property is one of the biggest expenses you will make in your life. Stamp duty is 5.5% on top of it. That adds up to a lot of money if the home isn’t right.
The feel of a home is so important. Sometimes it can tick all the boxes on paper but, walking through, it just doesn’t feel right. How can you determine this from a video?
Will the video show you everything you should be looking at, or only what the operator wants you to see? What about neighbouring properties, slope, light, overlooking, building condition, ceiling heights, room sizes etc?
The video operator will likely be the vendor or resident, as agents, photographers, copywriters, etc are unable to attend any properties until 26th October (unless to facilitate actions related to moving into/out of properties and rentals).
For those wanting to auction, the first weekend (using the traditional 3 week/4 Saturday model) for restricted auctions is 21st November and advertising preparation can’t be done until access from 26th October.
We therefore think the ‘private sale’ market, more commonly now called ‘off market’, will dominate initially and possibly right through until Christmas, as well as some unlisted quiet ‘off market’, although vendors of these homes may not be as motivated to sell.
If you’d like to chat in more detail, don’t hesitate to contact us;
Adam – 0413 318 079
Kristen – 0408 625 965
Alexandra – 0419 727 578