Property videos: how reliable are they?

In the midst of the COVID-19 shutdown, our challenges in the real estate industry in Victoria deepened when Consumer Affairs issued a notice to all agencies on the eve of our Easter long weekend.

The message was clear; no private inspections with consumers were to take place in any owner-occupied or tenanted properties.

The only inspections that could be facilitated with prospective purchasers would be for vacant properties.

Regardless of adherence to social distancing requirements, vendors whose properties were occupied could no longer have buyers walk through.

This was an enormous blow for agents and vendors alike.

Alarm struck that evening, as many agents, buyers, vendors and tenants had already arranged private inspections to be held over the weekend. The REIV issued further statements and it became very obvious that this decision, without any industry consultation would be highly upsetting for many vulnerable vendors.

The only inspections that could be held in occupied properties were those in which agents could walk through.

The consequences of this further restriction range in seriousness as follows:

• desperate negotiations with those interested buyers who have already walked through the property,
• moving into a rented premises, (further challenged by the issues associated with arranging removalists safely),
• vendors lying about their occupancy status
• vendors placing themselves and their families into a higher risk situation by moving temporarily into another dwelling
• vendors suffering substantial financial hardship as a result of forfeiting the sales campaign and potentially defaulting on a purchase that was made prior to COVID-19

The stress that this rule will have caused vendors over this Easter weekend is impossible to measure.

For those agents and vendors who could think on their feet quickly and adapt, the option of a video inspection became yet another new ‘normal.’ By Saturday afternoon, many agents and fellow Buyers Agents were coordinating facetime inspections, recorded inspection videos and narrated ‘walk -throughs’ for their vendors and prospective buyers.

We’ve been doing this for over a decade for expat and interstate clients, but now we find this ability to be not only timely, but valuable for our clients who are facing critical purchase-decisions during this period.

There are two critical things about video ‘walk-throughs’.

The first relates to trust. The buyer must have strong confidence in their videographer’s ability to relay the property accurately, along with all of the important elements that a video can’t pick up.

The second relates to authenticism. The video must capture the property in it’s most honest light, warts and all.

From highlighting the actual size of a room, (as we all know that fisheye lenses on cameras are designed to show all of a room, but they contort the picture and often make a space appear larger than it actually is), the natural light in the room, (without lighting equipment and professional photographer screens), to pointing out the faults and damage that a buyer needs to be broadly aware of before making a decision to pursue a building inspection.

Things like rising damp, plaster cracking, timber rot and mildew can be spotted relatively easily by anyone with a smartphone.

The more challenging things to spot, however are things that a trained eye will look out for, such as hints to older electricals, cheap fixes covering up sins and appliances that are faulty or damaged.

The other senses are the really interesting considerations

When we film a property for an expat, we need to take into consideration all of the things that can’t be identified simply with a video. It’s the narration then which becomes really important.

How the property feels may sound imaginative, but floor level and floor movement is easily identifiable for anyone walking through the property, particularly an agent who has walked through hundreds or thousands of properties and has gained experience in identifying even the slightest of flooring issues.

A good flooring observation can make the difference between averting a reblocking nightmare and signing up for tens of thousands of dollars worth of rectification work.

If the property smells, the buyer needs to know. The smell could just be cigarette smell, pets or bad hygiene, both of which can be sorted out with a good clean, (and sometimes a repaint, re-carpet). But mould spores or something rotting can become a more serious issue, and photos don’t even give a hint.

If a property is around noise, a video will generally be telling, but outside noise can be mitigated with closed doors/windows, and even more so with double glazed windows. Double glazing can solve the most serious of external noise threats, but a buyer should always know. From busy roads to flight paths, school yards to nearby industry, barking dogs to noisy neighbours, it is imperative that this information comes to light for a viewer.

When it comes to the question of neighbours, neighbouring properties and streetscape are critical observations too.

Busy streets, ugly lots, power lines nearby, crowded/limited parking and disruptive neighbours are generally identifiable observations, but these critical clues are often overlooked by videographers.

We can certainly continue to adapt, but for vendors and buyers who are tackling these challenges with video solutions, the reliance on thorough and critical video observations remains paramount.

Who knows what the revolt following the Easter weekend will look like? Our industry regulator may stand by their decision or they may loosen this tough restriction.

What we do know is that the resounding feedback from our real estate community feels that the decision, lack of consultation and heightened restriction is unfair. Safety does come first, and it should be the vendor’s decision to determine whether they wish to adhere to the safety protocols, manage the intensive cleaning practices, and facilitate inspections in their own homes.