Things Rarely Go to Plan And featuring RE/MAX Property Listings from page 14

THINGS RARELY GO TO PLAN

With Lyn Cox

Not normal is the new normal, in real estate.

If ever there was a stark reminder that things are not quite as they were in the state of real estate markets, it was a story relayed to me recently and involved a family’s very personal real estate experience. The way their purchase of a new home played out was filled with twists and turns.

As RE/MAX Australia Managing Director, Joel Davoren, puts it, ‘not normal’ is the ‘new normal’ in real estate. He’s right. Even normal real estate transactions can prove a little weird at present. Joel’s thought is to increase weird by 20 to 30 per cent – and be prepared for it. Suddenly, problem solving is a much bigger factor on the real estate scene. The story: In November, the family decided a third child on the way meant the home they loved and had renovated would not suit in terms of layout and space. The location was perfect so they would be selling and buying in the same market, one that was moving at a ridiculous pace, putting pressure on to act quickly. After researching the market, looking at sales of similar homes to their own, and looking at their capacity to borrow and their loan serviceability, they identified a property. It was going to auction in three weeks, and they would bid. They’d hardly made that call when they heard of a home in the same suburb currently under construction by a builder who impressed them. In the week leading up to the auction, the family presented their top offer on the new build. Negotiations went on right up to the morning of the auction. Finally, just prior to the auction commencing, there was verbal agreement on the new build purchase but no signed contract yet. It arrived in the in box with barely minutes to spare! Ten minutes later they had an unconditional contract on the house they were selling. An issue with the mortgage discharge release almost threw a spanner in the works for settlement on that one, but after some tense times, things finally went through. You would have read recently that settlement issues prompted changes to REIQ contracts. This is the Real Estate Institute and the Queensland Law Society being responsive to reducing unplanned for challenges. A buyer or a seller can now get a short extension to settlement if either party is unable to settle due to the inaction or delay of a finance institution, or for another valid reason.

You can see how, in this high-paced market, things can easily not go to plan. It is an unfamiliar market for most of us, the likes of which we’ve not operated in before. And even those experienced in real estate transactions are saying it is a crazy market, but one where auctions are still the most transparent method of sale. The key is to have all your ducks in a row, keep all lines of communication open, accept there may be uncertainty and heightened stress, and keep moving forward. Joel Davoren says that purchasers in today’s market are either ‘valuers’ or ‘buyers’. ‘Valuers’ say they are missing out on properties because they can’t or won’t always meet the price the property sells for. If you apply traditional valuer mentality to this market, you stand to lose out. The ‘buyers’ take action. They secure the property. Back to the family… with the new build not yet finished, everything went into storage, and they found alternative accommodation until the four, soon to become five, moved into their new home in December.

This family is one of many thousands who moved home in 2021, as many will do this year. Do your research, work with people you trust and be prepared for contingencies. If issues arise, manage your reactions because most times, there will be a solution.