Think of this scenario. Your neighbour has decided to sell up and go north. They get an excellent price for their house – higher than you or they expected – so you decide to sell up and head for the beach whilst the market is surging ahead.
This is very much a real-life experience today in the Covid environment and heated real-estate market, and here’s what they faced.
- Weeks 1-2. The agent selection took them two weeks.
- Week 3. The agent gave their opinion on required repairs and renovations.
- Weeks 4 & 5. They agreed to spend a substantial amount on the property to maximise the return. There were no permits required, just materials and renovation – selection of builder two weeks.
- Weeks 6 to 9. Discussions with the builder begin – this is where it got very messy. The builder couldn’t start for four weeks, and there was an acute shortage of supplies due to high demand and the Covid pandemic.
- Bank loan processing delays. The banks said they were so busy with a massive backlog of loans that it could take four weeks to approve the next property purchase.
- Weeks 10 to 15. Renovation works get underway – massive material shortages builder cant finish job on time.
- Weeks 16 to 18. delays in renovation work shortage of tradespeople, painters, carpenters and materials – flooring, kitchen and bathroom fittings and tiles.
- Weeks 19 to 20. Covid delays – tools down.
- Weeks 21 to 25. The property is finished, and the four-week auction campaign begins – property is listed.
- Week 26 house is sold at auction.
Although much of the work was done simultaneously – from the first idea of moving until the auction took over six months. The idea of quickly capitalising on the market became a nightmare for this family, and they often wondered if they made the right decision.
And with the bank loan delays and not knowing what their house would achieve in a market six months down the track – the owners had to wait to sell before looking for their next home in earnest.
At ela Property Advocates, we guide you step by step with the sale of your property and ensure you have a complete understanding of what lies ahead. Our goal is to help you make good property decisions. Call ela Property Advocates – Guy Angwin 0412 022 998 or Geoff Briscoe 0419 740 351. Web: www.elapropertyadvocates.com.