BLOG: ‘Agents who adopt Material Information early will gain an edge’

It has been several months since the release of the full Material Information guidance from National Trading Standards, and it is clear to see that the property industry is divided when it comes to both its acceptance and implementation.

Our previous commentary on the subject highlighted the importance of agents embracing the changes that lie ahead, not only from a compliance perspective, but we also believe that there are commercial benefits.

Perhaps – for some – there is a concern that compliance may be too labour-intensive and time-consuming and could potentially set back operations. But, in our experience, that really isn’t the case.

Speeding up sales

We believe there are and will continue to be clear commercial benefits when it comes to being an early adopter. The more work undertaken to prepare a sale, from finding out the full title information to uncovering complex legal issues, the faster things will progress.

Agents who arm themselves and their clients with upfront information will surely see their pipeline turning faster.

We have always advocated that the transaction process needs to start at the earliest opportunity, and this includes information gathering.

Across the thousands of sales we touch every year we consistently see that those transactions which have had all of the relevant detailed information from the outset go through significantly faster than those that don’t. As Material Information becomes more established, we expect to see real benefits.

Bringing the full facts forward means finding the right buyer – sooner.”

There are those who may argue that providing more upfront information could also lead to greater numbers of potential buyers being dissuaded from putting in an offer.

However, what we need to remember is that this information will come out at some point in time. Bringing the full facts forward means finding the right buyer – sooner, and the chances of potential buyers pulling out of a sale much later down the line being heavily reduced.

Equally, it’s important to note that speed in completion of the relevant forms by the vendor will also signal motivation to sell in a timely fashion.

Working smarter

In the current housing market, which is overwhelmed by longer transaction times, we’d encourage agents to look at how they can streamline their processes, not only to support compliance but also to help speed up transaction turnaround times. This doesn’t need to be disruptive to business as usual, it is about working smarter.

One thing is certain, those who embrace the new guidance will – we believe – see real commercial benefits in the medium- to long-term. Every agency knows that faster completions mean they are paid earlier, which is good for cash flow.

If agents focus on creating a better return on investment when it comes to onboarding, using the Material Information guidance to identify ‘deal breaker’ information earlier on in a transaction they will avoid wasting time on something that will never complete. And being more professional from the outset will not only help agents to stand out but is also likely to mean they’ll win more business.

Integrating the Material Information guidance into an agency process isn’t just a compliance issue, there is a commercial imperative that shouldn’t be ignored.