How agents can prepare for when the market loses heat

Increased demand for property has been fuelled by the stamp duty holiday and changing priorities. With the first phase of the stamp duty holiday now over, the number of buyers in the market could fluctuate. Estate agents can put processes in place that ensure they are in a strong position even when the market isn’t booming as much as it is right now.

Related topics:  Business
Property Reporter
30th July 2021
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The most beneficial way to do this, according to digital platform Gazeal, is by providing a more secure moving process, so the chances of a house sale completing is still high even when market activity is lower.

Moving forward, upfront information and reservation agreements can put agents in a positive position, and ensure buyers and sellers are secured throughout.

Bryan Mansell, Co-Founder of Gazeal, says: “Currently if a transaction falls through, agents can rely on the fact that several other prospects are queuing up to make an offer. This is because the market is so busy, and the demand is there. When this demand slows down, agents should still be prepared.”

“Agents can, in fact, increase security when there are fewer buyers in the housing market.”

Upfront information reduces fall-through rates

Property sales are more likely to complete if they are secured with upfront information. Full knowledge and transparency of the property before the offer is made reduces the chance of the buyer withdrawing from the sale.

Mansell adds: “By conducting checks and encouraging sellers to provide upfront information at an early stage, you can get the ball rolling sooner. With this out the way, you can quickly establish trust, making the sales process a breeze. By doing these checks beforehand you can weed out potential obstacles and focus your time on those who are sale-ready.”

Protocol information, guarantees, title documents, and certificates are some of the documents that should be provided upfront. Detailed buyer information packs can help buyers make well-versed purchase choices. Having safe, committed buyers is crucial when the market is less busy.

By providing this information up front, the overall transaction time will be decreased. This is beneficial for all members involved because it means the agent is paid sooner and it improves the buyer experience.

Mansell continues: “Once a sale has been agreed, neither the seller, buyer, or agent want delays. Especially when they could have been prevented by simply outlining key information about the seller’s property in the first place. Doing so abolishes the risk of any unwarranted surprises. Instead, all parties can proceed with confidence and reassurance.”

“If upfront information and buyer information packs are provided, you are likely to have safe, committed buyers - therefore increasing the likelihood of sale completing. There would be less urgency to rely on other prospects.”

Reservation agreements are key

The certainty that everything is in place to complete sales transactions is essential when preparing for possible changes in the housing market. Reservation agreements can help to provide this.

Mansell says: “During rainy days it’s important to make sure that everybody involved is in the best position to succeed. The only way to make sure this is the case is by being equipped with the right tools to make that happen.”

A reservation agreement can assure all parties are financially committed and making sure consumers are unable to lower the offer amount before the exchange of contracts (a controversial practice known as gazundering).

Giving buyers and sellers the option to enter into a reservation agreement can increase security, confidence, and transparency. It also safeguards the agent, Mansell claims.

Mansell concludes: “Knowledge that your deal is 100% secure before the legal exchange of contracts is reassuring. This is the kind of certainty that makes the home moving process a continued success, no matter how many buyers on the market there are."

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