Level 3: How to view and buy a house
Do I need to bring my own booties? Am I a ‘‘qualified buyer’’? Is it really safe? Your homebuying questions answered.
Real estate agents are back in business as the country moves through a slightly less locked down alert level 3.
But what exactly does that mean for prospective home buyers, and what will a viewing be like under the latest guidelines issued by Real Estate Institute of New Zealand.
Here is everything you need to know about buying a home at Level 3.
Should I attend a viewing?
According to the Real Estate Institute of New Zealand’s detailed guidelines, online methods like video conferencing and digital still photos should be prioritised over in-person visits.
If you’ve done that, you’re prequalified (see below) and you still think it’s the house for you, you should take a look at it.
No-one should attend viewings for properties outside their home region, however. Keep it local.
I’m over 70, should I attend or host viewings?
No. People in vulnerable communities – those over-70s, or with underlying health issues such as those undergoing cancer treatment or with severe asthma – are advised to hold off, a senior source in the industry said.
‘‘Wait till level 2 to have private viewings in your home or attend them.
‘‘We understand that it’s frustrating, especially if you’re a sprightly 72-yearold, but the reality is we just need to bide our time and in a couple of weeks we can move forward. If we rush in now, we’ll end up being in level 3 longer.’’
But I really want to look at this one home...
Buyers and sellers ‘‘just need to think a little more creatively’’.
Have a talk with your agent. They can walk you through a property virtually with the help of Zoom, Whatsapp or Vibr and show you any aspects you’d like in real time.
‘‘Tell them to open a cupboard, or room or the pantry and they’ll open it for you.’’
OK, so what’s all this about being ‘‘pre-qualified’’?
It’s not just about being able to show you have the money, it’s about safety and knowing the property, too.
‘‘What it means is buyers and agents working together to make sure that it is a property that a buyer may actually want to purchase,’’ says Lowe and Co managing director Craig Lowe.
‘‘It’s about both parties being realistic and buyers not just going to have a look or compare.’’
Auckland real estate agent Michael Boulgaris says that means the prospective buyer has done their due diligence, looked at the LIM report, organised their finances, are familiar with the location and have looked at the floor plan online, at the very least.
‘‘They need know what they’re looking at and that they’re not going to walk in the front door and say, ‘no, it’s not what I want, the bedrooms don’t work’.
‘‘I think we’re going to be very particular about that and not putting the owner at fear that strangers are coming into their bubble unnecessarily.’’
Who can attend the viewings?
Only one agent and two people from an extended bubble can attend a viewing together – so a maximum of three people in the home at one time.
There will be ‘‘strict and appropriate social distancing measures in place’’, says Lowe.
‘‘We’re aiming for a completely contactless process.’’
You won’t be allowed to view or show a home if you have cold or flu-like symptoms or have been recently ill. Agents will require you to answer questions and sign a contact tracing form before you can undertake a viewing.
‘‘There will be a lot more vetting of people over the phone,’’ says Professionals agent Shane Brockelbank
‘‘Number one, [we’ll be] making sure they’re currently healthy, and number two, that they don’t have any other issues health-wise [that might put them at risk].’’
Contact tracing will be easy for real estate agents as that’s part and parcel of selling homes already.
How long will I have to wait to see a home I’m interested in?
The rules say there can be only only two private viewings each day per property and no open homes.
While it might seem difficult to see the home you’re interested in, prequalification will mitigate that. Shane Brockelbank was geared up to take viewings on the first day on level 3, providing prospective buyers were prequalified.
He cleared viewings with his vendors ahead of time to speed up the process.
How many homes can I see a day?
Technically, you could see as many as you like as long as the vendor consents to showing the home and you’re one of only two viewings that property gets a day.
However, you still need to be prequalified for the houses you want to see, which means you’ve done your due diligence on the property, have your finances in place and the home fits your requirements.
I’m pre-qualified, not vulnerable and I can attend a viewing. What will it be like?
Private viewings have to be contactless, so the salesperson or letting agent will have to open all doors and cupboards before the viewing and the home owner will have left the property.
Buyers and would-be renters will have to wait in their cars until they are told they can enter.
While wearing gloves or masks will be up to the individual, shoes must be off, viewers must not touch anything, and physical distancing of two metres must be maintained at all times.
Boulgaris says he will be providing his prospective buyers with hotel slippers to wear within the home, for the comfort and safety of both parties.
In all other respects it will be much the same as any other viewing, says Lowe.
‘‘It should be no different from normal really, it’s just that they’re going to be spending less time than normal in houses and perhaps a bit more time online doing the prep work ahead of time,’’ he says.
‘‘[They’ll be] seeing what they need to see, but not taking an undue amount of time and everyone working in together to keep New Zealand safe. I think that’s fundamentally what it’s about.’’
What about auctions and tenders?
There’s no reason you can’t sell or buy a home at auction, or put in and receive tenders, they just have to be done remotely – there have been auctions under level 4 online and by phone.
Some agents think it’s likely we’ll see more properties for sale by negotiation or with BEO prices, however.
‘‘For the next four to six weeks all my listings will be selling either with a price or by negotiation, which purchasers have been screaming out for for a long time,’’ says Brockelbank.
‘‘I think there will probably be a lot more clarity in the market around what a property is selling for and what the owners are after, because it’s going to be there in print on the listing.’’