Whilst purchasing a property during the pandemic is not a new concept it can be overwhelming for most buyers thinking about getting into the market. The uncertainty of ever returning to a post covid era , the threat of rising interest rates and the fact that Winter traditionally means a shortage of houses on the market are some of the challenges being faced by buyers looking to enter the property market.
As Victoria’s 6th lockdown, looks to be extended past the original exit date of 2nd September 2021, Victorians are slowly learning to live with Covid and the limitations it has placed on all facets of our lives. However, if you are a serious buyer looking to secure your first home and take advantage of the numerous concessions available during the pandemic, there are a few things you should know;
1. Virtual tours and One on One inspections at Vacant properties are a must: One of the benefits to purchasing during the pandemic is that you do not have the pressure of inspecting properties with the crowds of people that usually flock to open houses. In a bid to adapt with the current situation real estate agents have become more creative and now offer either virtual inspections for properties that are currently tenanted or one on one inspections of the property with the agent where the property is vacant. This allows buyers a more intimate setting to get to know the property but also allows the agent to focus on the serious buyers.
2. Do not be tempted to over commit: With banking staff working remotely and the recent boom in property sales, banks are currently taking anywhere between 6-8 weeks to provide approvals for those looking to purchase a property. Therefore, to avoid headaches and heartaches at settlement it is imperative that you have a preapproval prior to purchasing a property and stick to your budget.
3.Organise a Contract review, prior to signing the contract: Having a contract review completed by a solicitor/ conveyancer prior to purchasing a property can both highlight any potential issues with the property, whilst ensuring that the contract does not unfairly infringe on your rights as a purchaser. Speak to the team at Conveyancer.com.au for a free Contract review today.
4. Familiarise yourself with online Auctions: Online auctions have been a constant feature throughout the lockdowns. Whilst you have the benefit of not having to leave the warmth of your couch to purchase a property and the pressure of hundreds of eyes watching your every move, you wont know who the competition is and just how much interest there really is in the property. Online auctions come with the additional challenges of requiring buyers to be technologically savy to overcome issues such as log in failures, screen freezing and time lags during the auction. To avoid the pitfalls of online auctions you may want to speak to a buyers advocate who will not only assist with the due diligence on the property but will ensure your foray into the world of online auctions is stress free.
5. Consider purchasing via private sale or prior to auctions: Purchasing a property 4 days either before or after a scheduled public auction or via a private sale allows the purchaser to have more control over the process. There is traditionally less pressure than when purchasing via an auction and is highly recommended for individuals who are uncertain of either the property or their financial situation as contracts can be subject to a range of conditions based on the purchaser’s requirements.