Just like every industry across the globe, the real estate industry is rapidly navigating and adapting to the changes brought about by the coronavirus.
State and federal governments have outlined new rules and restrictions for the industry, designed to ensure the health and safety of all parties, and helping to stop the spread of the virus within the community.
These changes have raised understandable concerns for buyers, sellers, tenants and landlords, who have lots of questions about how the industry is now operating.
Please be assured that we are still operating, under heightened precautions, and can assist with the sale or rental of your property during these unprecedented times.
Can properties still be sold and leased during the coronavirus?
Yes. Real estate agents are still working to sell and lease property, and conveyancers are still open to manage the legal process. While not officially mandated, the general thought is that real estate is an essential industry, as it provides shelter and supports the economy.
Can potential buyers and tenants still inspect a property?
Yes. On-site inspections can be conducted by appointment, one-on-one only. This means the agent can show the property to only one person at a time, and the inspection must comply with social distancing and hygiene rules. Open homes are not allowed.
We will minimise the number of people entering the property by qualifying buyers and tenants to ensure they are financially able to buy or rent the property and are familiar with the home and local area.
We request that buyers and tenants first view the property via virtual inspection, then contact us to make an appointment if they wish to proceed further.
How will property be appraised for sale or lease?
The new real estate laws allow for an agent to visit a property to conduct an appraisal, following all social distancing and hygiene guidelines, and minimising the amount of time spent in the property.
Alternatively, we can inspect the property virtually. This would be conducted via a FaceTime or Zoom meeting, with the owner walking the agent through the property, showing all rooms and key features. We will combine this tour with other appraisal tools such as location, market trends, recently sold/rented, other properties in the market and the current demand, to give you an indicative price guide.
Will it be harder to sell or lease property right now?
Not necessarily. Everyone has different reasons for buying, selling or renting, which may or may not involve the coronavirus. Your Ray Real Estate agent will work as hard as always to achieve the highest sale or lease price possible, just as they would have before the coronavirus crisis.
How is the coronavirus affecting real estate prices?
Predictions of this nature are very difficult to make. However, history shows that other outbreaks such as SARS and swine flu generally came and went without too much impact on the housing market.
Propertyology has analysed the market performance of every Australian town and city over the last twenty years, and concluded that while such contagions have impacted the broader national economy, there was no significant impact on the housing market. This is primarily because property provides shelter, which is essential to life, and is the reason property doesn’t experience the same volatility as the share market.
Below is a graph compiled by Propertyology highlighting the impact of various economic disasters over time. It shows the impact on property has been minimal and has always recovered.
We suggest you speak to your financial adviser if you are concerned about your property investments.
Is moving house still allowed during the coronavirus?
Yes. You can still move house, and hire a removalist to assist you. This is deemed an essential service. You may also renovate your new house and hire tradesmen, complying with social distancing and hygiene rules.
What happens if a tenant can’t pay their rent?
Tenants in financial hardship should contact us immediately to enter negotiations with their landlord. While it is true that there is a six-month moratorium on evictions, this does not mean rent is waived. Tenants will still be required to pay any rent owing and can be evicted at the end of the six months for rent arrears. This is not a situation we want anyone to be in, so please contact us straight away if you are experiencing financial difficulty.
Please be assured that Ray Real Estate has quickly adapted to the real estate industry changes spurred by COVID-19 and will continue to work with you to mitigate any effects on your property goals during this period. Please contact us if you would like to further discuss any aspect of real estate.