It has been encouraging to read some of the more positive property market headlines coming through at the start of 2024.
Indeed, we were starting to hear about some ‘green shoots’ when speaking to our agency clients in December, and the market seemed to be moving in a more positive direction than many would have predicted.
Keen to glean more insight, we decided to poll a number of agents to hear their reflections on the 2023 market, and their projections for this year ahead. Unsurprisingly, the majority alluded that listings were down last year, but they expected 2024 to be a better year.
Industry average transaction times of between 100-150 days were cited, with those polled stating they didn’t see this improving for the year ahead. The question is does it need to be this way?
When we asked agents what would create change and bring down average transaction times, the overwhelming majority advised ‘more upfront information’ and ‘material information on property listings’. It is therefore somewhat concerning to read headlines around the large numbers of agents still unaware of the latest Material Information (MI) guidance. For me, forging a unified path towards meeting the new MI rules creates the solution to the whole problem.
There’s no doubt that more upfront information helps to speed up transaction times. We consistently see this with the sales we work on, and from some of the proactive agents we work with, one of which collects upfront information and has steady turnaround times of under 70 days, with their fall through rate being less than 10 per cent. It is also clearly having a direct impact on their bottom line.
Material Information can make a positive change in the industry and can’t come soon enough in our eyes – and all agents need to take the responsibility to understand what is required of them. It’s about education; we shouldn’t be scared of MI or ignore it. There are suppliers already creating solutions to support agents with the process. For those agents who’d prefer to leave the detail to others, it’s important to ensure they are working with trusted partners.
Ultimately, MI can ensure quicker transactions, and those agents who adopt the process will undoubtedly see better metrics as a result.
Tony Hill is commercial director at Assured Sales and Progression (ASAP).
Good.
This obvious solution makes perfect sense. Before marketing a property the seller should make sure it’s instantly saleable.
It’s not difficult. It puts the correct emphasis on the legal nature of a property transaction. Go to Solicitor, get property checked over and a buyer’s pack properly collated and then market the property.
The end of “List and Hope for the Best.”
I don’t believe there are estate agents who don’t know about MI. I do believe there are estate agents who are choosing to ignore MI. It’s a legal obligation to provide MI. The guidance merely clarifies what is required.
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A full auction legal pack contains everything a buyer requires to exchange contracts immediately. In the vast majority of cases, solicitors are able to prepare one within a couple of weeks and – hey – everything is ready to roll! As an estate agent as well as an auctioneer, I always find it very strange how conveyancers huff and puff in getting everything together on private treaty sales, when next week they are dealing with an auction sale without delay. We are continually spending months and years talking about how much and what information we should provide upfront and third parties telling us how they can do it all to reduce our profit when the answer is on the doorstep.
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All we needed was a re-designed and turbo charged HIP. Which some of us were producing some 15 years ago.
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Yes Rob. My views have changed a bit over the years! A turb-charged HIP would be the same as an auction pack pretty much.
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