What house-buyers can and can't do during Alert Level 3

Real estate agents will be able to conduct private viewings once the lockdown is lifted.

Minister of Housing Dr Megan Woods confirmed today that private viewings, by appointment, of homes for sale or rental properties could take place under Alert Level 3 – with details and limits to be worked through.

However, agents will still be banned from holding open homes under Level 3 restrictions which come into effect on April 28.

The news has been welcomed by real estate leaders, who believe the government's announcement will give a boost to the housing market.

Bindi Norwell, chief Executive of the Real Estate Institute of New Zealand, said: “We’re delighted that private viewings can take place under Alert Level 3, and we look forward to receiving the further details we need over the coming days in order to make this happen. We are also pleased that the Government has listened to industry feedback.

“This means that the thousands of people around the country who have been in limbo over the past few weeks can now move forward with their property transactions.

“For those individuals who have been unable to conduct pre-settlement inspections during the Level 4 lockdown period and have been paying hundreds or thousands of dollars in bridging finance each week, today’s announcement will come as a big relief,”

Carey Smith, chief executive of Ray White NZ, said the decision gave certainty to the market.

“Ministers have realised the importance of the transactional part of real estate,” he said.

“The first set of guidelines gave us the opportunity to list property, the confirmation of private safe viewing adds a very positive dimension for buyers and particularly those who are looking to rent."

Smith said that all the associated businesses that rely heavily on property transactions will now be able to help bring the New Zealand economy “safely back into gear”.

Peter Thompson, managing director of Barfoot & Thompson, told OneRoof that if moving companies were able to operate during Level 3 then so should agents.

“We're delighted that the Ministry have changed to allow personal viewings, particularly for those vendors who have settled who can now look to buy so they’re not on the street," he said.

“People’s well-being is improved to know they can actually see the property in person. It’s a challenge for anyone who could not buy a property without seeing it in person."

He added: “We’ve got buyers waiting to buy, sellers waiting to list, offices on standby with listings ready to go, as long as we can show people through.”

Harcourts managing director Bryan Thomson agreed. "We are delighted that buyers, sellers, landlords and tenants will now have the ability to utilise the services of the real estate profession and progress their property needs in a safe and secure manner,” he said.

The clarification from Minister Woods follows days of confusion over what agents could and couldn't do once the country moved out of lockdown.

Real estate leaders had criticised the Government over its failure to issue clear guidance following its initial statement to the industry on Level 3. The Ministry of Business, Innovation and Employment told agents last week they could enter people’s homes in Level 3 but could not run an open home.

Agents were annoyed that the Level 3 restrictions allowed access for professionals such as building inspectors, as well as buyers completing their pre-purchase walk-throughs, but until now did not make clear that agents could show potential buyers through a property.

Draft guidelines allowing private inspections had been with the Government since late last week, but had not been signed off until today.

Directors of UP Realty Barry Thom and Grant Lynch said that they are relieved that they can resume showing of property.

“It’s relieving the stresses and strains that very many buyers and sellers have been feeling under lockdown, when they were unable to take their lives forward.’

They said that they are extremely confident that they can operate safely for their buyers and sellers.

Yesterday, Thom and Lynch told OneRoof that the lack of clarity from the Government was hurting buyers and sellers.

“There are people hurting - they are finding themselves under a lot of pressure,” they said.

“We have a range of purchasers who are effectively locked out of their ability to do a transaction.”

Thom and Lynch said the uncertainty was particularly stressful for vendors who have sold their properties and are under contract to settle and vacate their premises after lockdown lifts.

National MP for Rodney Mark Mitchell told OneRoof yesterday that he has been contacted by several distressed buyers and sellers, as well as real estate agents.

“This is a real and genuine concern and it’s going to create some major stress,” he told OneRoof. “Frustration is building because people are not getting clear answers from Government, and no-one seems to be taking responsibility.”