4 WAIKATO BUSINESS NEWS <strong>August</strong>/<strong>September</strong> <strong>2021</strong> Real estate agents go digital to cope with Covid uncertainty Real estate agents are turning their businesses digital as they adjust to Covid uncertainty. The switch is paying off for many with Hamilton agents Lodge Real Estate selling nearly $17.5 million worth of property at online auctions during the first week of New Zealand’s level 4 lockdown. Managing director, Jeremy O’Rourke, said the Covid pandemic was forcing the real estate industry to innovate quickly and reassess its traditional face-to-face approach to selling property. Agents are navigating social distancing rules for house showings by taking more video so they could offer virtual viewings. They are also holding auctions entirely online and managing paperwork digitally using programmes like DocuSign. “This lockdown was entirely different from April last year. “Buyers and sellers are much more comfortable transacting online and real estate agents have learned so much since the first lockdown in 2020 where the market became very subdued. “I believe this pandemic is a time of reckoning for our industry. “The nimble will innovate, embrace digital and thrive while the staid, traditionalists risk being left behind. “If weekly print advertising and in-room auctions are still at the forefront of your business model as an agent, this lockdown needs to be a wake-up call.” In the first week of level 4 lockdown, which started on <strong>August</strong> 17, Lodge Real Estate conducted 17 auctions online, attracting 71 bidders who offered 267 bids. The online auctions were watched by 1509 people, as a total of $17,475,500 worth of property was sold. In total the 17 properties sold for $912,000 above the reserves. “People are used to Zoom and Skype and Microsoft Teams. “Buyers and vendors have both adjusted to it easily during this lockdown. We’re using DocuSign to manage documentation, and everyone is comfortable transacting virtually,” Jeremy said. Agents conscious of the potential for further lockdowns were placing more emphasis on video to market properties so they could still show buyers through listings. “And Lodge has experienced buyers who had bought property without physically setting foot inside it,” Jeremy said. Virtual tours, 3D walkthroughs and drone footage were being used to show properties. Figures from Realestate. co.nz showed the number of listings featuring a video was up eight per cent between April 1 last year and <strong>August</strong> 28 this year, when compared with the period from November 1, 2018, to March 31, 2020. The figures showed video had increased in every region, except the West Coast. Southland had the highest number of video listings, with 22 percent of listings including a video. It was followed by Canterbury and <strong>Waikato</strong> on 18 percent, and Central Otago/ Lakes District and Manawatu/ Whanganui on 17 percent. “It’s indicative of how the industry has changed, not just from the seller’s point of view, but from the buyers’ point of view also,” said Jeremy. “The digital space is something we are comfortable with now and as agents we are asking, what are we trying to achieve and convey and how does that work digitally?” He said, however, that it was not as simple as switching what Jeremy O’Rourke you do in person as an agent to doing the same thing online. For instance, he said online auctions were vastly different from those run in auction rooms. “As an auctioneer myself, I find you have to constantly be thinking about the audience and understand the nuances of how everything is being viewed and heard on the other side of the screen in that online environment. “For instance you can’t have any downtime or silence in an online auction because people will become frustrated and tune out. “The auctioneer must constantly adjust and fill any gaps to create a continual, positive, fast-paced atmosphere. It’s an entirely new skillset for us,” Jeremy said. In the last week of <strong>August</strong>, as New Zealand moved to level 3, Lodge sold a further four houses at online auctions, with 11 bidders placing 65 bids. The average sale price was $927,750 and a total of $3.711 million worth of property was sold. CoreLogic released <strong>August</strong> house price data last week revealing the average house price in Hamilton fell in value by 2.8 percent over the month, and 0.5 percent over the quarter, to $782,774. While there was a slowing in the market which always came over winter, Jeremy said as spring started there had been a lot of activity with people seeking pre-listing kits and requesting home appraisals. In total Lodge Real Estate agents sold 86 houses in <strong>August</strong> with a median house price of $860,000. This compared with 124 sold by Lodge Real Estate in <strong>August</strong> 2020 at a median house price of $683,000. Council backs 35 community projects with funding Congratulations to the 35 community groups from across the Western Bay of Plenty who have been granted a share of $140,000 from Council’s Community Matching Fund. To be eligible for funding applicants must ‘match’ Council’s financial contribution, but unlike many other funds, the Council’s fund values volunteer hours and in-kind support equally with cash donations. Council’s Community Manager David Pearce says, “Community groups are vital to our way of life in the Western Bay. These groups do incredible things for our people and our environment and don’t make a fuss about it.” The current COVID response is a great example. Groups like the Pacific Island Community Trust and the Katikati Community Centre, have become the frontline of support for those in need. “We’re proud to support them to do what they do best, and spread the benefits of this fund as far and wide as possible,” says David. Each year $40,000 is dedicated to environmentally focussed projects. This year includes the Wai Kokopu community group, who will use their cash grant to purchase native plants for Te Waihi estuary to enhance the riparian margin. Other funded projects include assisting the Waihī Beach Events and Promotions group to install accessibility mats and improve beach access for all. The Te Puke Gymsport will be funded to run another year of their coaching education programme, and the Pukehina Residents and Ratepayers Association will also receive funding to install mara kai (vegetable gardens) and orchards, improving their overall resilience. This is the fifth year of the community-matching fund and it remains popular, with demand from community groups exceeding available funding. A panel of staff and Council members consider each application according to a set of criteria to ensure fair and objective results. BEWARE OF FOREIGN IMITATIONS. There’s no shortage of great ideas in New Zealand. But for an innovative bunch, we’re not the best at realising the full potential of our innovations, particularly when exporting them. At James & Wells, we can identify your competitive edge, offer business strategies for specific markets and help you own and leverage your intellectual property to ensure no one steals the fruit of your labour. www.jaws.co.nz | +64 7 957 5660
WAIKATO BUSINESS NEWS <strong>August</strong>/<strong>September</strong> <strong>2021</strong> 5 FIND YOUR OFFICE AWAY FROM THE OFFICE. LODGE.CO.NZ
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