When we carried out our cross-market research last year, one thing was abundantly clear: times are tough for property professionals.
Estate agents are no exception. A staggering 88% said their role has been impacted by recent legislative changes, while 53% admit to struggling to progress transactions at an optimal pace.
They’re not alone. Across the sector, there are heightened tensions around issues such as chain length, communication and instability.
Finding a way forward
We believe that progress starts with bringing together diverse perspectives within the industry. That’s why we invited three experienced property professionals to sit down for a chat on camera – to better understand each other’s challenges and exchange ideas about the way forward.
In this blog, we take a sneak peek at the video from an estate agency perspective.
Consistency in the inconsistency
Over the past 24 months, the theme for many estate agents has been “consistency in the inconsistency” – as we heard within the video. Our estate agent commented that it has been hugely challenging to secure the business and keep deals together. Ben Robinson, MD of Landmark Estate Agency Services said: “Uncertainty is hugely frustrating for estate agents, especially the many owner-operated estate agents who might not have large cash reserves and need their pipeline to flow as smoothly as possible. Over the past year or so, the same amount of money is coming in over a longer period, and fixed costs have increased, making it harder for agents to remain in business.”
Overall, it’s clear estate agents feel that so much is out of their control at present. Our recent market research revealed that agents’ top concern is market challenges, followed by transaction completion times and the increasing administrative and regulatory burden.
Communication, not duplication
During the video, we hear frustrations about how many tasks are being duplicated by estate agents and conveyancers. Remarkably, our estate agent contributor shared that agents don’t get paid for 44% of their time. Our market research chimes with this finding, with agents spending an average of 44% of their working day chasing or being chased for updates.
So, what’s the solution? Ultimately, the group agree that it all comes down to better communication. As we hear in the video, very few estate agents are aware of the conversation that takes place between the solicitor and the lender, which can leave them (and the buyer / seller) in the dark.
With better communication comes the more efficient sharing of information, as Ben Robinson explains: “If we can ask deal-breaking questions right at the start, then the whole chain understands whether a sale is able to progress. We remove false transactions and speed up the ones that hold value.”
Intensity and complexity
The often-hidden role of an estate agent in keeping the whole chain moving is explored in the video. We hear about the intensity of the job and stories of new estate agents leaving the industry on day one due to unexpected complexity and pressure.
Estate agents are often the lynchpin between the buyer or seller and the whole transaction process. Consumers depend on estate agents for updates, which likely explains why estate agents spend more time chasing for updates than other property professionals.
The impact of consumers being left in the dark has been brought into sharp focus by a recent poll of home movers, with 77% experiencing increased stress because of their last home move.
Transaction length and fall throughs
There’s no doubt that increasing time it takes to complete a transaction is impacting agents. The issue of inefficiency – more specifically the duplication of data – is raised within the video. We hear that the length of time it takes to complete a transaction (currently sitting at an average of 19 weeks, according to Landmark data) has nearly halved the agent’s ability to invoice.
Furthermore, fall through rates and longer transaction times both mean it’s more challenging to keep the chain moving. Market data from April 2024 found that agreed sales are getting stuck at the under-offer stage for longer – up around 10% – which has pushed fall-throughs up by 26.6% during the first four months of 2024 vs the pre-pandemic average.
On a wider note, RICs recently joined the call for the better sharing of upfront information to reduce chain uncertainty, commenting: “The role of professional surveys earlier in the home buying and selling process, to help consumers make well-informed decisions and reduce the risk of sales falling through.”
So, what’s the overall verdict in the video? Are three very different property professionals able to find common ground?
Watch the short video here to find out more.
This article was submitted to be published by Landmark as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
