Tips for Buyers in the Covid-19 Era

Whilst many auctions have proceeded to live-streaming online, a large number of vendors have transferred their campaigns to private treaty.

This is no surprise. Private treaty is the traditional way of selling in Australia, so many vendors feel at present feel more comfortable with this compared to livestreaming, which we’ve successfully rolled out in recent weeks.

We’ve also seen a big increase in properties selling prior to auction. It’s understandable that in the midst of Covid-19, motivated buyers and sellers are keen to get a good deal over the line.

The property market is functioning very well under Covid-19 restrictions.

Inevitably during economic disruptions, some buyers and sellers choose to delay.

The percentage of withdrawn campaigns has recently spiked to more than seven times the weekly average nationally, according to CoreLogic.

This will change as we all get used to living with Covid-19 over the next six months.

Meantime, buyers have no reason to exit the market. Property is a long term purchase and from a capital growth perspective, what is most important is time in the market, not timing the market.

To help you along, here are my top tips for buying during Covid-19.

I hope they give you a confidence boost to buy when you’re ready.

Tips for buying via private treaty or pre-auction:

• On auction campaigns, ask the agent if the owners are willing to consider pre-auction offers
• Tell the agent you’re interested but don’t let on that you’re emotionally attached
• Don’t start with your best offer. When it’s rejected, pick an odd amount next to imply you’re at your limit. Rather than offering $960,000 or $965,000, try $963,500.
• Use any common ground, like a desire for a longer settlement, to incentivise the vendor
• Don’t make negative comments about the property. Vendors are influenced by their emotions, too!

Tips for buying at auction online:

• Watch some auctions online to get familiar with the process first
• Have your agent of choice step you through the online platform
• Register to bid early and ensure you have good wi-fi signal strength
• If you’re going to bid, take your time and understand the incremental advances
• Stick to your budget. Short-lived disappointment is better than long-lasting remorse
• Understand your legal requirements when executing contracts online
• The online bidding process is easy to use and can be done from the comfort of your own home

Covid-19 is a short term disruption when considered in the context of long term home ownership (usually 10+ years!).