Having spent years immersed in the world of conveyancing, I appreciate the complexities and challenges inherent in our profession and none more so than the fees charged for that service. I ask myself regularly, ‘How do we stop this ‘race to the bottom’ and make buyers and sellers see the value of conveyancing?’.
As the landscape of conveyancing continues to evolve, I feel that the traditional pricing models do not help us articulate the value provided. There has been an evolution of conveyancing fees, originating like most other areas of law by way of time-based billing, where the cost of services was determined in billable hours and the complexity of the matter. This approach was dismissed as unworkable in conveyancing on the basis that buyers and sellers are unwilling to pay on this basis given the requirements for certainty in the transaction. Fixed fees emerged as a response to this, offering predictability and transparency but too often resulted in significant margin reduction and reduced quality as a result. More recently there has been a commoditised approach adopted, driven by the transparency rules and competitive pressures.
The journey in fee structures has been a testament to the profession’s adaptability and need to be compliant. However, as we look to the future could we build a compelling case for embracing a more sophisticated and client centric approach to pricing?
The conveyancing landscape is diverse, with firms offering varying levels of service, technological integration, and expertise. Could we explore differentiated fee structures that reflect the unique value propositions on offer? This is proven in other industries where consumers willingly pay different prices based on the quality and specialisation of the service received. Is there an opportunity for conveyancers to leverage this principle to justify their fees based on the bespoke nature of their offerings in a comparable way to say financial services?
There are of course the regulatory requirements to consider with the SRA transparency rules which require that ‘price information must be presented in a clear and understandable format’. Is that truly what is being delivered with most of the estimates supplied at the outset of conveyancing transactions today and are consumers able to make an informed choice? I would suggest not.
Rather, the current practice of listing numerous fees for potential circumstances is understandably overwhelming for consumers who often do not understand what they are buying by way of a conveyancing service.
In many ways the regulatory drive for transparency has inadvertently led to confusion and anxiety among consumers, who struggle to comprehend the implications of these fees. Could we adopt a more consultative approach? By thoroughly advising consumers upfront on the value the conveyancer adds and the significance of their role in the process, we can start alleviating concerns about final fees and demonstrate the true value of conveyancing.
There is a potential window for opportunity here with the introduction of the National Trading Standards Estate and Letting Agency Team (NTSELAT) guidance driving early disclosure of material information that could affect the consumers’ decision to buy, married with a call out to bring the conveyancer into the transaction much earlier to be able support and guide the consumer from the outset.
If conveyancers embrace this change and look to involve themselves at the outset, there is an opportunity to redefine their value proposition and build stronger, more meaningful relationships with consumers.
In conclusion, the evolution of pricing in conveyancing could represent a bold step towards redefining the role of conveyancers as trusted advisors. By aligning fees with outcomes and emphasising collaboration and partnership with clients, conveyancers could potentially unlock new levels of value and differentiation in a competitive market. The journey ahead may be challenging, but the rewards could be high. Pioneering a new era of conveyancing grounded in trust, value, and innovation.
This article was submitted to be published by PEXA 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.
