I have the answer to the biggest problem in property
As featured in the Negotiator here -
Speeding up the buying and selling process. How and where do you start? If you were looking for a solution to the energy crisis – the hot air produced in well-meaning discussion going back years would suffice.
Most, old enough, will go “well what about HIPS” – but timing and content wasn’t right. More modern suggestions mostly include a competing commercial or proprietary element – and that’s before you try and persuade solicitors to join in. Everyone in the process has some kind of vested interest in perpetuating an esoteric process – but the time is coming when Gen X will be in charge and they won’t put up with it.
My interest was piqued when a friend with a vested interest [and part of the hot air brigade], Tim Main from dataroom outfit PIP Vaults, mentioned someone he’d been talking to who’d been running a trial, with stunning and unimpeachable results.
Phil Priest, from 4 Corners, a company developing partnerships between solicitors, estate agents, mortgage brokers, and financial advisors, had told 200 buyers that IF they purchased an upfront Search for £275, the property they were buying would be taken off the market. 50 said they would and on average took 79 days to complete [NOT just exchange] with – wait for it – zero fall throughs. The remainder took 120 days, BUT, 42% fell through.
Keep it simple stupid.
To me the above is a classic case of Keep It Simple Stupid – the sweet spot. £275 is just enough for a buyer to feel they’ve got skin in the game, plus they all understand what a Search is. Start banging on to them about TA6 and BASPI and they glaze over and don’t have a clue what you’re on about.
Along with this commitment comes a solution to the age-old problem agents have when they happily ring their buyer and tell them the offer is accepted. “So will you take off the market” – to which most sensible agents panic and/or fudge, given they know there’s an almost evens chance it will fall through.
“Non-refundable deposits are a waste of time.”
Non-refundable deposits are a waste of time and agreements will exercise solicitors for almost as long as an exchange. This sweet spot in win win for agents, buyers, sellers and solicitors given Searches are pretty much push button access these days.
I honestly can’t see why this couldn’t be the simplest answer to speeding everything up – even if you wrap it in one of Tim’s data rooms it’s all agnostic, easy to grasp and ready now with proven results.
Am I missing something or will this encourage the usual solicitors out of the woodwork asking why it isn’t time to go the whole hog and get a pack.
Answer, IT’S NOT NEEDED.
- Ed Mead, Co-founder of Viewber.
