An increasing number of vendors are renting back their houses or delaying the settlement period for fear they won’t be able to find another house amidst robust demand for a limited supply of properties on the market on top of delays due to lockdown restrictions and weak rental vacancy rates.
It is now common to see extended settlement periods, leaseback deals ranging from two weeks to six months and other ingenuous clauses that we only have previously seen in the top-end of the market.
A contract settlement period, in general, is 28 to 42 days. Currently, this has become three to six months. Some sellers are requesting a leaseback arrangement, which means real estate agents need to be aware of both buyer and seller needs and to negotiate more creatively.
Some agents are witnessing leaseback transactions for garages and storage spaces or alternatively deals that offer buyers quick access to those spaces.
Such options are important to encourage wary homeowners to sell, especially with the downsizer market. On the flip side, interstate buyers are also asking for extended settlements while borders remained closed.
Here’s hoping that the pressure on buyers and sellers will ease with the ending of the lockdown and that stock levels will expand and make people more confident to transact.
If you’re thinking of selling anytime within the next 12 months and would like additional information call Annette Pinkerton 0418447856.