Auctions and open for inspections banned

Discussion in 'The Buying & Selling Process' started by Simon Hampel, 24th Mar, 2020.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    From what I've been able to gather from news snippets of the PM's address tonight - auctions and open for inspections have both been banned because of the COVID-19 risks involved. Auction houses are mentioned specifically.

    I've yet to read an official statement to back this up.

    Private treaty sales can still go ahead, as can individual inspections.

    I imagine there is an opportunity to do remote or online auctions too - the issue isn't in the auction itself, it's in the gathering of people in one place.

    Will update once full information is available.

    Note that this view on limiting such activities is fully supported by the REIA - https://reia.asn.au/conduct-of-open-homes-and-public-auctions-by-real-estate-agents/

    Full text of the press release from Adrian Kelly, REIA president:

    On Sunday night, the Prime Minister made it very clear that all Australians should immediately cease unnecessary travel and cease all unnecessary social interaction in order to limit the spread of the Coronavirus.

    With this in mind, the Real Estate Institute of Australia is now calling on all real estate agents across Australia to make significant changes to the way they conduct their business particularly in relation to house inspections and the conduct of public auctions. Past practice with open homes and public auctions needs to cease.

    We need to take the Covid-19 Virus seriously. The deliberate organising of a gathering of people by a real estate agent flies in the face of the directives of the Prime Minister. To continue to arrange unmodified public open homes and auctions is clearly irresponsible.

    Whilst we obviously recognise the impact to trading this will have, it is important that the entire industry pulls together and supports the Government in their efforts at this time to limit the spread of Covid-19.

    One on one private inspections by appointment must become the norm coupled with the appropriate safeguards as recommended by health authorities. With regard to public auctions, these can still occur via telephone bidding or by using one of the many online auction platforms available. We need to show some initiative and resourcefulness at this time.

    As an industry, we are all in this predicament together and the sooner we all do what needs to be done, the sooner we can return to a more normal real estate market.​

    I think this is a sensible approach really.
     
    Simon Hampel, 24th Mar, 2020
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  2. Sackie

    Sackie Well-Known Member

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    Should have been done long ago imho.
     
    Sackie, 24th Mar, 2020
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    The exact content of what the PM said is this:

    "... auction houses, gatherings together in auction rooms, that can no longer continue. Real estate auctions and open house inspections, in particular open house inspections — that cannot continue."​

    This is directly in response to the lobbying by the REIA.
     
    Simon Hampel, 25th Mar, 2020
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  4. Sackie

    Sackie Well-Known Member

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    So im assuming private appointments and taking people through one by one can?
     
    Sackie, 25th Mar, 2020
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  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    The REIA's recommendation was: "One on one private inspections by appointment must become the norm coupled with the appropriate safeguards as recommended by health authorities."

    The PM has not said anything to indicate that this is not the case.
     
    Simon Hampel, 25th Mar, 2020
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  6. Sackie

    Sackie Well-Known Member

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    I just got a call from a real estate agent to let me know all listings have become for sale and inspection is my appointment. there are still buyers in the market as I still have 3 people coming this evening for private appointment which have confirmed they are still coming.
     
    Sackie, 25th Mar, 2020
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  7. balwoges

    balwoges Well-Known Member

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    Back to the days of meeting would-be purchasers/renters at the property and finding they haven't turned up ... :(
    How many agents would want to drive clients in their own car to a property these days?
     
    balwoges, 25th Mar, 2020
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Agent has contacted me this morning, auction has been cancelled - best offer in sealed envelope with S66W at their office by 5pm tomorrow. Essentially a few days earlier than the auction.

    He has advised that several buyers have pulled out, owner taking a smaller deposit and longer settlement.
     
    Scott No Mates, 25th Mar, 2020
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  9. Sackie

    Sackie Well-Known Member

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    You selling?

    I got 3 buyers coming tonight. Fingers crossed.
     
    Sackie, 25th Mar, 2020
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  10. Lacrim

    Lacrim Well-Known Member

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    I remember those days lol. They don't do that anymore.
     
    Lacrim, 25th Mar, 2020
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Tyre kicking a site in the SE.
     
    Scott No Mates, 25th Mar, 2020
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  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Spoke with one PM this morning who is doing the following:

    * Take a video of the property and publish it with the rental listing.
    * Wait until the tenant has moved out, then go through cleaning all the common surfaces.
    * Do one on one walk throughs with individual new tenants, offering hand sanitiser, etc.

    I really don't see that there is going to be much turnover of tenants for a while though. Can you imagine trying to move house without assistance?
     
    Peter_Tersteeg, 25th Mar, 2020
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  13. lettert

    lettert Well-Known Member

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    During current Vic Stage 3 lockdown, is it possible to do individual inspections on properties?

    I mean, theoretically it's an essential service - ie providing housing.
     
    lettert, 31st Mar, 2020
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  14. Simon Hampel

    Simon Hampel Founder Staff Member

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    If you need a house, you need a house.
     
    Simon Hampel, 31st Mar, 2020
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  15. marmot

    marmot Well-Known Member

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    How will that work in 3 or 4 weeks time when there are serious restrictions on when you can leave you house, for investor owned property, the tenants and are not allowed to be evicted and you are not allowed to have gatherings of more than 2 people, with exceptions for families that live together and shared homes , would real estate agents even try and push the boundaries, with the possibility of fines for social gathering rules and allow inspections on property that is still occupied.
     
    marmot, 31st Mar, 2020
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  16. Jacque

    Jacque Jacque Parker Premium Member

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    Agree with @Simon Hampel here in that the provision and transacting of property really is an essential service. Everyone lives somewhere, whether that be rented or owned accommodation, and the ramifications are huge if the entire industry were to shut down. Removalists are also still considered an essential service, though with restrictions in place. We are requesting settlements are bought forward for our clients (where possible) in case further restrictions apply in the coming weeks, and there is lobbying being done by the state institutes and other industry bodies, but these really are extraordinary circumstances. re.com have a good FAQ on their site right now
    Coronavirus: Can I still sell my house? FAQs on how COVID-19 affects the housing market - realestate.com.au
     
    Jacque, 31st Mar, 2020
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