The coronavirus pandemic is forcing property sellers to think differently about their next move – and estate agents to get creative to help them.
Already growing in popularity before tough social distancing restrictions were put in place by the Government, virtual viewings have never been so attractive to property seekers.
And potential sellers yet to put their homes on the market are finding it is possible to get their property valued without an industry professional crossing the threshold as the market adapts to these unprecedented conditions.
Here, OnTheMarket looks at how sellers can still make progress on finding a buyer for their homes even in these rarest of times.
What is a virtual valuation?
If you’ve yet to put your home on the market but would like to go ahead, you obviously won’t be able to have an agent or surveyor visit to carry out a valuation.
The Government has advised that estate agents are not ‘necessary visitors’ and should not be invited to your home.
But all is not lost as virtual valuations can be carried out without a physical viewing. Estate agents and surveyors are using different techniques to value properties to get them ready for market or price them for mortgage lenders.
These include:
- Photography: These can be taken by the vendor using smartphones or cameras
- Video: Again, most vendors are perfectly capable of recording footage of their homes to aid a valuation, either for sending to an agent or surveyor after the fact or by walking them through the property on a live video tour
- Comparable sales research: Local agents will have extensive knowledge of the value of property currently on the market and of recent sales in their area and may even have sold a similar property nearby or on the same street before themselves
- Buyer demand: Good estate agents will have a database of potential buyers from which they can gauge the likely level of interest in your property and draw up a list of those who might be interested in a virtual viewing
- External property reviews: Agents or surveyors may not be able to enter your property but they can pass by outside and make judgements based on the exterior.
How to get a virtual valuation
There are no rights or wrongs here, you just need to speak to your agent or surveyor and see what might be possible – it is their job to help you try and make this work.
You don’t need a 3D camera to create video footage which might be useful to them, just communicate and together work out the best way to proceed.
When it comes to video and imagery, you will want to capture as much of the your property as you can, inside and out, to allow the agent or surveyor to make the most accurate valuation.
It might be best doing this via video call, on Google Hangout, Facebook video chat, WhatsApp video call or whichever platform is preferred, so the agent or surveyor can guide you through and make sure they see everything they need to.
If you’re making the video yourself and then sending it on, check with whoever it is with whom you’re working about which file transfer method to use – for example Google Drive, WeTransfer or Dropbox.
Estate agents offering virtual valuations during coronavirus lockdown
Deans Properties in Edinburgh are one of many agents offering virtual valuations.
Amy Howard, Head of Estate Agency, told OnTheMarket: “Deans Properties are actively conducting virtual valuations in a range of ways to suit the seller – we have successfully completed valuations through video calls, phone calls and photographs.
“We spend time researching the property with comparable sales. Often we are able to locate a floor plan or it is exhibited, which is also helpful.
“By having a virtual valuation prepared those sellers will be one step ahead of the rest of the market when it comes to being ready to sell.”
Click here for more information.
Curchods, which has 21 branches for sales and lettings across Surrey and South West London, has just launched a virtual valuations service based on market research of similar properties; the agent’s buyer database; historical data and a video consultation.
Click here if you’re interested in signing up.
Mark Hayward, Chief Executive of estate agents’ professional body NAEA Propertymark, told OnTheMarket that would-be sellers should “choose your agent carefully.”
He said: “Agents not only work locally they live locally and have years of experience. They may have sold your property before or know that type.
“You have got an opportunity because there will be a spike [when restrictions are lifted] and you need to be ready. Buyers will come out.”
Mortgage lenders adjust to coronavirus with more open stance to virtual valuations
Opposition among many private banks to accepting desktop and remote valuations has begun to soften, according to Knight Frank.
After strict coronavirus restrictions were announced on 23 March, “there was a lot of confusion and adjustment happening, with people firefighting trying to work out what they were supposed to be doing,” says Alex Ogario, Head of the Private Office at Knight Frank Finance.
“Now banks that weren’t going to accept desktop valuations are coming to the realisation they will need to. The big lenders with the big balance sheets tend to be on board, and that’s good for the market because transactions can continue to a certain extent.”
Lenders have been approaching valuers to better understand what is required to provide robust desktop valuations in order to make decisions on their processes and policies, says Katie Parsonson, head of Knight Frank’s London Valuation and Advisory team.
Read more
- The best virtual property viewings you can do right now
- Coronavirus: How buyers can get their house in order before the market resumes
- Coronavirus: What it means for home buyers and movers
“We’ve been positively reassured by the number of fee quote requests, from lenders for desktop valuations across the core and super prime market in London,” says Parsonson.
“These have ranged from £1 million homes through to single home developments of £20 million to £30 million.”
Mark Hayward added: “Up to a relatively high loan to value ratio lenders will accept a desktop valuation and a lot of time is being spent preparing these for lenders.
“Desktop valuations are definitely a solution for a lot of cases.”
Take advantage of coronavirus restrictions to fix up your home and garden
Now is the perfect time to carry out those renovations to your home and garden you had been planning but never got around to.
As long as you already have the materials, or are able to get them delivered or click and collect from the majority of DIY stores which are still open, you could put up shelves; paint window frames or your front door; sort out that rickety gate or just get a new knob for the oven.
First impressions are important and essential maintenance helps sort out the little details which might put potential buyers off when they are able to visit again.
Mark Hayward said: “Sellers have an opportunity now to get a property not just market ready but sale ready.
“They should ensure the presentation of their property is the very best it can be. You can garden and tidy away your clutter.
“Keep talking to your agent as visually things are changing just at the beginning of spring. As soon as we come out of lockdown make sure your agent comes round and takes new photographs.”
Find the right solicitor and get your documentation together during the coronavirus restrictions
Government advice is that sellers should “use this time to start gathering together all of the information you will need to provide to potential purchasers.”
According to Dawn Carritt, Director of Country Houses and Estates at Jackson-Stops, “Most solicitors are now working from home and can be easily contacted.
“Explain to them that you are thinking of selling and want to get as much of the paperwork sorted as possible. In particular, I would recommend you ask them for the enquiries forms (TA6, TA7 and TA10) which are the forms they will normally send you when you agree terms with a buyer.
“These with show you a raft of questions to be answered and the various documents you will need to unearth, ranging from service records and guarantees to planning permissions and listed building consents.”
Mark Hayward added: “Sellers have got an opportunity to get all the information together that a lawyer will want once you get a sale.”
The latest NAEA Propertymark Property Information Questionnaire will help you get everything in order.
Sit tight during the coronavirus restrictions
There’s no reason to take your home off the market at this moment. Would-be buyers are still browsing properties online via agents’ websites and portals like OnTheMarket.
The traditional spring moving season could simply move back a few weeks to when restrictions are hopefully lifted and the property market can get going again.
Read more
- Coronavirus: What financial help is available and how you can claim
- Coronavirus: Mortgage advice for homeowners and buyers
- How will the three month coronavirus mortgage holiday work?
Much of the demand built up during Brexit negotiations, and beginning to be released after the election of a majority government in December, remains unsatisfied.
Mark Hayward said: “Don’t get disheartened and keep it on the market, you’ve done all the hard work getting it there.
“Agents are still working remotely and they have the luxury of being able to spend more time talking to buyers and sellers. They are working very hard to deliver.”
If you’ve already exchanged contracts – Government advice on selling your home during coronavirus restrictions
The Government has advised that all sellers who had exchanged contracts before strict coronavirus measures were implemented, should delay allowing potential buyers to take possession of their property ‘where possible’.
In guidance issued on 26 March, the Ministry of Housing, Communities & Local Government said that while there “is no need to pull out of transactions”, “we all need to ensure we are following guidance to stay at home and away from others at all times”.
Moves into vacant properties are permitted as long as social distancing guidelines are adhered to during the removals process.
But, unless the move is ‘unavoidable for contractual reasons’ and the parties are unable to agree an extension, moves into occupied properties should be postponed until after strict coronavirus containment measures have been lifted.
Extending your contract to sell during coronavirus restrictions
Those who have already exchanged contracts but have been unable to complete should try to negotiate an extension with a new completion date.
You should see if your solicitor can insert a clause allowing for either party to delay completion should strict Covid-19 mitigation measures again be enforced.
The Law Society has a produced a draft specimen clause here.
OnTheMarket has a dedicated page for coronavirus information and advice.
