Property chains more likely to collapse in uncertain market conditions
Property chains are more likely to collapse when the market is facing uncertain times according to sales progression and communication tool mio.
Factors such as extended Brexit negotiations and political unsteadiness mean that both buyers and sellers can lose confidence in the market and delay moving decisions.
Consumers craving more certainty and stability may be opting to hold off moving until these conditions are met, suggests research from Quick Move Now. They cite collapsed chains as the reason behind almost a third of all failed property transactions.
With the recent prorogation of parliament and the likelihood of an upcoming general election, along with a likely extension to Brexit negotiations, the political uncertainty, and subsequent market fluctuations will probably continue for the foreseeable future.
The chances of consumers pulling out of deals they feel could be on the verge of breaking down or stagnating are heightened.
“Every hour that a sale stalls is another hour the customer has to find another property or agent, or begin questioning their investment,” says Jon Horton, Product Director of mio.
He says that educating consumers on how the sales progression works can help to improve their confidence and protect transactions.
“It’s essential that buyers and sellers understand what a realistic transaction timeframe is for their area,” Horton adds.
He explains that one of the biggest issues for the stability of chains and transactions is property sellers basing their expectations on national averages or experiences of friends and relatives in different parts of the country.
“This can be dangerous as sales progression timeframes can vary wildly from region to region,” he says.
Horton says that if consumers know to expect a delay, their expectations can be managed.
“If a buyer or seller knows that their agent is prepared for anything, it can improve trust between both parties and contribute towards a more seamless transaction.”
Ensuring that the solicitors have been informed of the sale before a property goes on the market means things can hit the ground running when a sale does go through.
“This has the added effect of allowing consumers to feel they have some personal control over the situation,” adds Horton.
He says both agents and consumers can improve their communication by embracing modern methods such as instant messaging via dedicated apps or WhatsApp.
“This approach could reduce time wasted following up on unanswered phone calls and abandoned email chains,” says Horton.
“Providing regular updates can help reduce panic and associated problems so will always be well received.”
“However, it is all about finding a balance as there will be times when phone and email correspondence is necessary.”
