The real estate industry has criticised the Government over its failure to confirm whether or not agents can conduct private viewings of properties once the nationwide lockdown is lifted next week.
Under guidance issued by the Ministry of Business, Innovation and Employment last week, real estate agents can enter people’s homes but cannot run an open home under Level 3 restrictions.
Real estate leaders have been pressing the Government for clarification on whether the new restrictions that come into force on April 28 will allow agents to show homes to potential buyers by appointment.
Barry Thom and Grant Lynch, directors of Auckland real estate agency UP, told OneRoof that the lack of clarity from the Government was hurting not just agents, who will be unable to conduct business, it would also have an impact on buyers and sellers.
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“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.”
Draft guidelines for residential sales under Level 3, allowing private inspections, have been with the Government since late last week, but so far they have not been signed off.
This morning the Real Estate Authority advised real estate agents that they are committed to working with the industry, with the government agency’s chief executive, Kevin Lampen-Smith, saying it would communicate the final guidelines for real estate activity under alert Level 3 as soon as possible.
“The final position is still to be determined by ministers. We continue to work with government officials and REINZ [the Real Estate Institute of New Zealand] to have this matter clarified as soon as is possible,” Lampen-Smith said.
Thom and Lynch told OneRoof the uncertainty is particularly stressful for vendors who have sold their properties and are under contract to settle and vacate their premises after lockdown lifts. These vendors, they said, have been unable to purchase a property during lockdown and so will have nowhere to move to.
“Unless this is resolved, given that Level 3 will be for two weeks, these vendors are effectively locked out for three more weeks. That potentially puts them in default of contracts, and that’s an unintended consequence,” they said.
“People are in trouble, and we are unable to do what we can do to help them.”
National MP for Rodney Mark Mitchell says 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.”
Act leader David Seymour also urged the Government to clarify the rules. “People who have settled recently risk being homeless if they can’t find somewhere else to live. Similarly, changes in relationships and financial circumstances will require new accommodation arrangements, but the Government has sent mixed messages about whether private viewings – not open homes – are permissible.”
Agents are annoyed that the Level 3 restrictions allow access for professionals such as building inspectors, as well as buyers completing their pre-purchase walk-throughs, but still do not allow agents to show potential buyers through a property, even with social distancing and other health protocols in place.
Mike Pero, head of Mike Pero Real Estate, says that agents don’t see why private one-on-one viewings can’t be approved if agents follow social distancing and hygiene protocols.
“Everyone plays the game - we don’t want to mess it up for our country,” he said, but for agents the priority is to get existing listings re-fired up and sold to get the property market back moving.
Ray White NZ chief executive Carey Smith says that the levels of online inquiry indicate that there is certainly demand from existing buyers to view properties.
“Many homeowners have indicated a need to be able to place their properties on the market and for this reason, existing buyers who may have sold their properties and will settle in Level 3 will need to be able to purchase a new property,” he says.
Smith says that the company has produced safe business practice for agents and clients for property appraisals and listing, pre-registering potential buyers for appointment viewing.
He adds that the company has been at the forefront of online auctions and expects to see further enhancements in virtual walkthrough as well as property photography and videography.
In Australia, agents have been able to conduct private inspections during the country’s lockdown.
Ray White Australia said buyers in Australia must pre-qualify their interest with a virtual inspection first and then request a one on one private inspection next. “There are only ever two people inside a property and all while adhering to the 1.5m social distancing rules. Home-owners are asked to open the windows, cupboards and doors so there’s no need to touch any surfaces,” she said.
“Everyone uses the hand sanitizer gels and surfaces are wiped down after each inspection, and they are generally spaced well in time. Inspections can be held safely for all stakeholders.”
