How to buy a property during lockdown

Just when we all thought the major challenges of COVID were behind us, we’re caught up in another lockdown in Sydney. Now, it’s even harder for buyers to navigate the market with changes to open homes and the return of the dreaded online auction.

So, how do you stay ahead of the game?

The first weekend of the Sydney lockdown proved that imposed changes are making an impact, with clearance rates down approximately 20% and sale prices also down across the market.

While the process of buying during a lockdown isn’t new, uncertainty is still proving a challenge, and slowly rising interest rates are another factor to consider. Add into the mix that Winter brings a shortage of housing stock, and things are definitely up in the air.

On the upside, low auction clearance rates and falling prices could see buyers get a little bit of power back. If you’re looking to buy a property during lockdown, here’s what you need to know…

Open homes are out

While checking out a property without hundreds of other buyers is certainly a win, trying to get a scheduled viewing makes it harder for prospective buyers even to get their foot in the door.

Capacities are down, so vendor agents are doing everything they can to make the most of every person that steps foot into the home. That means that buyers with pre-approved finance and those with connections to the agency through a Buyers’ Agent or a history of purchase are getting preferentialtreatment.

Unfortunately, unassisted buyers may not even get the chance to view a property before it’s put up for auction.

Changes to open homes also means that only one person can view the property at a time. Even couples will have to split up. This makes it hard to ensure you’re on the same page, and some critical issues can be missed.

Takeaway: If you’re looking to buy with someone else, make sure you talk through everything you’re looking for in the property first. Getting a Buyers’ Agent on side can also help you pick up on things you may miss during the limited viewing time and will help you get your foot in the door in the first place.

Learning to navigate online auctions is crucial

As someone who’s attended and bought at hundreds of auctions, I can tell you that nothing can quite prepare you for an online auction. Technical difficulties and bugs alone are a considerable challenge. I’ve had to face pre-registration issues, log-in challenges and even screen freezes mid-auction.

Then you have to think about the psychological side. You can see who you’re bidding against at in-person auctions and use tried and trusted strategies to assert yourself and ultimately secure the property. Online, things are very different as you may not see who you’re up against, and it’s harder to stand out as a formidable opponent. You often don’t even know how many people are registered.

Takeaway: Try to build a strong relationship with the vendor agent before auction. Being in contact with them during the auction helps navigate technical difficulties and ensures your bids are always heard.

Consider making an offer prior to auction

Recently, it’s been notoriously difficult to purchase pre-auction. Vendor agents not only love the crazy sale prices, but it also works as a marketing tool. But with the lockdown changes and things moving online, now may be the time to consider putting in an offer before auction.

Takeaway: Be prepared to move quickly and have all of your ducks in a row. The offer process can be just as stressful as an auction, so planning and organisation are essential. Having an expert helping you decide when and how much to offer will dramatically improve your chances of success.

If you’re still unsure or want some tailored advice about your situation during lockdown, don’t hesitate to get in touch.