Just like most of the countries worldwide, New Zealand is in the middle of a unique situation, and unprecedented times often call for unprecedented action.
With the property market coming to a sudden halt, here are some things that you and your vendors can do to deal with COVID-19 – and prepare for when the market will find its feet again.
Buying and selling during the lockdown
At the time of this writing, real estate is not considered an essential service, and the Real Estate Institute of New Zealand (REINZ) has recently shared some helpful guidance on how the Level 4 restrictions apply to the profession.
While settlements and house moving are deferred until Level 4 is lifted, and face-to-face viewings are not available over the lockdown period, it’s still possible to market and sell properties during this time.
In the meantime, here are some steps New Zealanders can take in the property space.
Real estate agents
Time to get creative
Sure, it’s not ‘business as usual’, but technology can come to your help. According to Owen Vaughan, editor of property listings site OneRoof, while a number of sellers have put their plans on hold, many agents are still active and finding creative ways to show their vendors’ properties remotely and do online auctions.
Viewings could still take place via online virtual tours or video-conferencing, provided no in-person contact occurs and people aren’t required to leave their homes.
And of course, auctions can also take place remotely, via phone or online bidding methods. Alternatively, you can recommend your vendor to turn the sale method into a tender or price-by-negotiation.
Let the public know
Buyers and vendors are likely to take a cautious approach, so it’s important to let New Zealanders know that they can still buy or sell houses during the lockdown. Importantly, with the number of property listings being at a minimum, vendors may benefit from lower competition on the market.
So if you have sold a property during this period, perhaps using innovative technology tools like drone footage or virtual tours, REINZ would like to hear from you – just email marketing@reinz.co.nz to share your story.
Get all the help you need
Lastly, don’t forget that you may be entitled to the Government financial support package – click here to learn more about the COVID-19 wage subsidy. It could be a significant help in alleviating some of your immediate financial concerns.
Vendors
Contracts can still be negotiated
Sale-and-purchase agreements can still be negotiated, although it may not be possible to confirm the unconditional date during lockdown. That’s why it’s all the more important to get legal advice on what conditions and clauses to include, as well as what to do if the settlement is delayed or buyers had a change in circumstances.
According to REINZ chief executive Bindi Norwell, NZLS Property Law Section suggests inserting a clause into new agreements that are drafted during the lockdown period, stating that the settlement is “deferred to the 10th working day after the Government reduces the COVID-19 Level to Level 2 or below”, or to a different date that may be mutually agreed between the parties. Similarly, contracts should be amended to ensure house moving happens when the circumstances allow it.
Of course, during lockdown, delays are likely. Property inspections won’t be possible until the Level 4 restrictions are lifted. As for property file information, some councils are advising that LIM report requests will still be processed, though there may be delays during technical challenges. All of this could affect finance approval and delay unconditional approvals. So again, getting legal advice every step of the way is highly recommended.
If your vendors are planning to sell soon (or as soon as possible) and would like to secure a top-notch marketing campaign for when that time comes, please get in contact with our team. We can arrange pre-approvals, giving you and your vendors comfort that the marketing campaign costs are taken care of. Click here to learn more about our ‘advertise now, pay later’ finance option.
Planning a renovation soon?
As New Zealanders find themselves spending more time than ever at home, many may notice what areas of their property need work and start thinking about how to improve it.
In line with the guidelines provided by Building.govt.nz, several councils are advising citizens it’s still possible to apply for building consents during the lockdown period. As always, the processes for lodging a new application vary between councils.
Also, home owners won’t be able to hire builders until Level 4 is lifted. What they can do, though, is complete the smaller DIY projects, and think about more extensive renovations they may want to do down the line.
Some families may want to rearrange their space to allow for extra bedrooms or a more comfortable outdoor area. Others will feel they need to downsize, while those who will be working from home on a more regular basis may look for properties with enough room for a home office.
If any of your vendors are thinking of renovating to get their property ready for sale, click here to check out our ‘renovate now, pay later’ finance tool. Once again, our team can help them get a pre-approval so that they are ready to tackle those jobs once the lockdown is over.
We’re in this together
In times like these, it’s important to remember that we’re in this together, and the only way we can go through it is together. And remember, as trying as the current situation may be, there will still be people who genuinely need to buy and sell properties.
We just need to allow the housing market to find its ‘new normal’, and in the meantime, we’ll continue to join forces to help New Zealanders make their property moves.
If you have any questions or would like to discuss how we can support your business and your vendors’ property needs, please don’t hesitate to contact us. We’re fully operational during lockdown and ready to answer your queries.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.