You may think it's all too hard to even commence to sell your property with our hard and sharp lockdowns, and prefer to wait until they are over.
Although we don't recommend selling your property in a hard lockdown, it is possible to start the sale process, so as the lockdown eases, you will be in a position to move quickly with the sale. It just takes some planning and working within the restrictions.
A good reason to act now.
Currently there is strong buyer demand and low property supply. We are seeing strong competition for properties (particularly, good properties) which are selling well in excess of their valuations and agents expectations.
However, once lockdowns are over, we can expect a flood of new properties coming on to the market; more than we usually see in Spring. The impact on prices with this additional supply is unknown, although certainly won't be positive.
Hard Lockdowns.
In a hard lockdown, agents can’t even inspect a property to give a marketing proposal, nor can tradesmen attend to give quotes or undertake work* (other than essential work). However during this time there are still actions you can take to plan for the time when lockdowns are eased.
It is important to be at the head of the queue for cleaners, gardeners and tradesmen when lockdown restrictions are eased. You can be sure there will be considerable demand for their services.
It’s also important to get your property on the market as soon as possible so your property is ahead of the rush.
Perhaps the best way to explain what you can do now, is to list the steps we follow with clients property during a hard lockdown (assuming we haven’t inspected the property and the property is occupied).
We have the client walk through the property with their phone camera to video each room in the house as well as outside and the garden. From the video we compile a list of works we consider necessary to prepare the property for sale.
We seek indicative quotes from our list of relevant service providers - cleaners, gardeners, painters, etc. All will be in short supply once restrictions are lifted. It is helpful to have good working relationships with them so they are available when we need them.
We select two local estate agents for marketing proposals and give them a copy of the video. This allows them to undertake their research into the property and provide their marketing proposals. Based on our information, they don’t have to attend the property to provide their proposals.
We arrange a quote from a property stylist and ensure that they can provide their services once restrictions are lifted to allow marketing, again based on the video.
Once quotes and marketing reports are received, we prepare a Property Report with our recommendations for review by our client.
At this point the estate agent can be appointed, and service providers engaged in readiness for the easing of restrictions.
Once presentation works have been done and open for inspections can be held, your marketing campaign can commence.
What if there is another lockdown during marketing and before the auction?
It’s a judgement call as to whether the auction should be deferred until after lockdown (which is an un-known period), or hold an on-line auction.
We recently advised a vendor of a renovated Victorian home in inner-suburban Melbourne. The property had only been open for inspection for one week before a hard lockdown was called. However in that time there were 40 inspections with at least five likely bidders. After four weeks of marketing and still in lockdown, based on these numbers it was decided to proceed with an on-line auction.
Seven people registered to bid with the agent for a Zoom auction. Everyone could see each other during the auction which we believe is important to give re-assurance to the people bidding.
Five people placed bids with two pushing the price $400,000 above the property’s ‘on market’ price, much to the vendors delight.
This shows that purchasers accept on-line auctions and great results can be achieved with a good auctioneer.
In this case it is unlikely that a different result would have been obtained for this property even with a normal four week campaign and an on-site auction.
It also shows how much pent up demand there is currently for appealing properties.
House Prices on the Increase.
It’s no secret that property prices are strong and expectations are that they will continue while interest rates are low. However the current scarcity for well located and well presented properties are forcing people to pay a premium. How long this continues is yet to be seen
If you are proposing to sell your property, now is the time to get started. If you would like to talk to us, we are always happy to discuss any aspect of your property sale, no matter where you are in the process.
Regards,
Robert Allanadale
Director
*Under current arrangements, cleaners and tradesmen with Permits can undertake work at a vacant property. The only problem is to get the tradesmen to do the work at a reasonable price.