I have returned from a break to find that the market is slowing although this is often the case in the run up to Christmas.
And what happens when the market starts to dip? Firms reduce their prices.
Why?
At a time when conveyancing firms are being put under more and more pressure (think regulation, stricter AML, lender requirements… the list goes on) and mortgage rates are increasing, I do not understand why a firm would think it would be a good idea to lower fees.
I understand this is a way of attracting more work, but now would be the perfect time to increase fees for the work being done in a firm. It would enable the conveyancers to feel under less pressure.
Lowering fees will have the reverse effect, more work comes in and some one needs to do it… and the pressure and stress increases.
Can I suggest something controversial? Now is the time for firms to invest.
There is a lot of discussion about digitisation. The Law Society are updating the Protocol (and I have to say that I like the proposed changes, especially those which relate to enquiries). There are legislative changes afoot with commonhold set run alongside leasehold (which will involve training of staff); the home buying and selling reform roadmap indicates we could see the introduction of reservation agreements.
No is the time to invest in staff and the processes they use. It may not reap immediate returns but I think we are all in this for the long run, and investment now will lead to rewards in the future. Think what it would be like if you were the only firm in your area who could handle a commonhold transaction, how much would that knowledge be worth and how much could you charge for that knowledge?
Fees is something I am passionate about. Conveyancing is harder than it was 20, or even 10 years ago. It is increasingly specialised and let’s not forget that.
Charge more and look after your staff.
This column is written by a real high street conveyancer who wishes to remain anonymous. The views expressed are those of the author and not those of Today’s Conveyancer.
Read more in Today’s Conveyancer every week.
