An unprecedented 2,206% increase in property ‘fall-throughs’

There has been a 2,206% rise in fall through activity since the beginning of June 2020, according to the latest fall-through analysis by BriefYourMarket.com.

The study, compiled using the marketing provider’s on-market property data platform, illustrates how the rise in activity has significantly increased fall-through rates.

BriefYourMarket.com’s CCO Richard Combellack said: “This is the unpleasant side of the recent market activity. Obviously, as the stamp duty incentive encourages more buyers and sellers to market, it is also an inevitability that an increased number of people will be impacted by their sale falling through.

“With greater activity comes increased probability of heartache for many, as more financial qualification needs to be processed, chains become lengthened, and conveyancing firms come under greater pressure.

“Although, if the recent reports from Zoopla are anything to go by and indeed there is likely to be more than 100,000 additional property sales expected during the first three months of 2021, agents need to ensure that they have all the right tools in place to get their services in front of committed sellers in 2021.”

Following on from a soft launch of BuildYourMarket last year, CEO Damon Bullimore, along with notable industry backers including former LSL director, David Newnes, have been working with several estate agencies to further develop and enhance the platform with the objective of providing agents with a data-driven on-market prospecting tool.

Bullimore commented: “This automation saves our customers time and effort by communicating accurate and timely communications at various stages to on-market homeowners.”

Richard Combellack added: “What’s really exciting about this product is that agents get a full holistic view of all on-market activity in their area. Build integrates with an agent’s database, cross-referencing known vendors; our customers are often stunned at how many of the local population are already in their datasets within their CRM. So, if you conducted a market appraisal but subsequently lost the instruction to a competitor, Build automatically identifies these lost instructions and can trigger email or print communications directly. Agents can reduce their prospecting costs and be highly- targeted in their approach to continuing conversations where they left off as opposed to sending generic canvassing material.

“The on-market part of the platform is really  powerful. It gives agents total control of their budget at branch level, so each individual agency can build their own multi-channel canvassing strategy to target secondary instruction opportunities at key intervals such as four to 16 weeks on market, price reduction +two weeks, fallen through and withdrawn. In addition, the technology includes dynamic telephone tracking which enables the agents to see every lead generated from the campaigns and tracks the Return on Investment against valuations to instructions in CRM records.”

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16 Comments

  1. SLP

    It is dangerous sweeping statements like this that damage all the hard work we do.
    There is no evidence or justification for this claim, so the only reason it can have been made is to grab a headline on behalf of the company making it.
    (either that or their platform providing the data doesn’t work!)
    Our, and I feel quite certain, virtually every other reader’s experience, is quite the opposite!

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    1. iainwhite87

      100% agree 

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      1. Robert_May

        You should have a look at the data Iain

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    2. Country Bumpkin

      Of course this is a load of publicity tosh. We think we run a tight ship and manage our sales well but an honest report on fall throughs;

      Gross fall throughs (sales agreed but collapsed) = 33%

      Net fall throughs (includes reselling the above) = 6.20% (currently, yr end 31/12/20)

      Like for like increase in sales this yr on last = +63%

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  2. Realitycheck97

    Sales times in London have increased by 117 days, says another report. I wonder if these statistics are informed to some extent by apartment sales, some of which are hitting difficulties due to cladding concerns and the need for an EWS1 form?

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  3. iainwhite87

    I would love to test the validity of this claim , it’s not representative of what is actually happening and in my opinion Is a reckless and potentially damaging headline .

    any estate agents out there actually able to confirm this is what’s happening ?

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    1. richardc31

      Hi Ian

      I am happy to show you the data on this, let me know if you are free today.

      Kind regards

      Richard

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  4. andrew1503

    I had to read the headline twice. Did they really mean 2000%?

    Completely untrue for me. I’ve got four shops as well.

    Very slow yes.  Maybe a small increase because of mortgage issues with furlough etc but nothing more.

    So fall throughs increase by 2000% ?Complete nonsense.

     

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  5. Certus

    Nonsense! Opposite is true for me with just 7 Abo’s in 2020.

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  6. johnclay

    Do the maths somebody!  The usual rate of fall throughs is quoted as about one third.  100% increase would give two thirds.  200% would give no transactions going through at all.

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  7. thelexrock

    Shows that the algorithm and data analysis of Briefyourmarket.com is completely inaccurate and not worth the paper its written on or even reading!!- how can you come out with this tosh when every market is different, if we all analyse our own areas, sales have increased substantially and if your fall through rate is anywhere near 30% in the current marketplace then you have a problem in your business! Briefyourmarket just damaged their credibility, that’s if they ever had one!

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  8. juniorneg

    Richard Combellack – what are you trying to achieve with such dribble.  

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  9. richardc31

    Appreciate this article has caused some confusion if anybody would like to see the data I am happy to share it with you please contact me richardc@briefyourmarket.co.uk.

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    1. Robert_May

      have emailed Richard

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  10. Robert_May

    I  took Richard up on his offer to put the numbers  Brief you Market are seeing in context. Where Eye  published half a story to start with and then partly resolved the confusion that caused by adding the graph, there is indeed a huge spike in fall throughs.

     

    Quite what is behind that isn’t entirely clear but I would seriously recommend agents spare 20 minutes to have a look at the data Richard has available to him.

     

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  11. AnotherView

    Looking at the data provided, this article is a farce.

    The data provided by Richard shows fall through data was around 1000 in June…ie. when transaction volumes were basically nil due to a virus some of you may have heard about!

    In a normal month around 80k property transactions are registered with HMLR.

    So a normal month would see 20-30% of sales fall through, on 80k sales this is 16k to 24k fall throughs in a ‘normal’ non Coronavirus month.

    In short, there is no abnormality of the number of fallen through sales and they are talking #!#+.

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