Estate agents should begin preparing for major changes to the home-moving process rather than waiting for the Government to mandate new working practices, according to industry trainer Michael Day.
The managing director of Integra Property Services (main picture, inset) says proposed reforms could allow early adopters to differentiate their businesses while helping to reduce completion times and fall-throughs.
The Government’s home buying and selling roadmap considers measures including instructing conveyancers when a property is first marketed and providing more information to buyers at the beginning of a transaction.
A new form of Home Information Pack, reservation agreements and property condition reports could also form part of reforms intended to create greater certainty for buyers and sellers.
REFORM BECOMES URGENT
Day says the existing system is taking more than 20 weeks on average to move from an agreed sale to completion, while around one in three transactions collapses.
He argues that the financial and emotional consequences for consumers, agents and other property professionals make reform increasingly urgent.
Day says: “Along with others, I have been ‘preaching’ about ways to improve the system for years.
“Now it seems as if we may see aspects such as getting conveyancers instructed at point of marketing and the provision of upfront information via a new type of Home Information Pack become mandatory, possibly alongside elements such as reservation agreements and condition reports.”
MANDATORY PROCESSES MAY PROVE DECISIVE
Professional qualifications for estate agents are also being discussed, but Day believes operational requirements and clear accountability may have a greater immediate effect on transaction performance.
He says: “Qualifications for agents are being talked about but, in my opinion, it will be the mandation of processes, penalties for non-compliance and aspects such as the acceptance of who does what and appropriate insurance that will need careful planning and implementation.”
Any reforms would need to define the responsibilities of agents, conveyancers and other participants, alongside the insurance and enforcement arrangements supporting them.
EARLY ADOPTERS COULD STAND OUT
Day believes agencies do not need to wait for the final rules before improving upfront preparation and collaboration with conveyancers.
“There are definitely clear opportunities for businesses to be first to market or to gain early adopter advantage and differentiate themselves,” he adds.
