‘Upfront information is key to speed and security for sales’
Jamie Cooke from iamproperty says that with shorter timescales agents can get paid faster and increase their pipeline turn – big wins in more challenging markets.
The industry has shared mixed feelings about the changes to Material Information and Parts B & C are expected to come into play from the autumn.
Some are behind it and see the opportunity it brings but others are dubious about the impact that it could have on transactions and what it means for them from an admin point of view.
For the last 14 years I’ve seen first-hand the impact that upfront information has when it comes to speeding up completion timeframes and reducing fall through rates. I believe it’s the key to bringing more speed and security to all transactions, not just auction, which the industry has been calling out for.
MAKE POSSIBLE
Upfront information is what helps to make the 56-day completion timeframe of the Modern Method of Auction (MMoA) possible.
This is less than half of the average transaction timeframe of Private Treaty, which can take over 120 days to complete.
With shorter timescales agents can get paid faster and increase their pipeline turn – big wins, especially in more challenging markets like we’re currently in.
Since 2009 we’ve captured all information upfront for our auction properties and anyone interested in a property can see its details within an Auction Pack.
UNDERSTAND EVERYTHING
It means they can understand everything they need to know to help them make an informed decision before placing a bid. It’s tried and tested and supports fall through rates for auction being as low as 2% compared with Private Treaty rates of around 30%.
Auction Packs help to get the transaction prepared by collecting key documents and information sooner which ultimately speeds up the conveyancing process. The documents include the likes of Local Authority Searches, Property Information Questionnaires and Title Plans and Registers.
Agents and consumers have come to rely on auction for its speed and security; knowing that sales will be faster and more efficient and they’ll have a more secure and transparent experience. More information upfront has the potential to be transformational for the industry in improving the Private Treaty process too.
BEST PRACTICE
It could also go some way towards driving a new standard of industry best practice, with more consistency around what information is required and when.
Although the full requirements of Material Information Parts B & C are still to be confirmed I do expect to see some synergy and it really doesn’t have to be another admin burden for agents. There’s technology out there that will be able to gather a lot of the information for them.
Ultimately, more information upfront has the power to increase pipeline turn, reduce time spent on sales progression and reduce fall through. I see it as something the industry should embrace and get behind. The benefits speak for themselves.
Jamie Cooke is Co-Founder of iamproperty
