We’re seeing mixed feelings from the industry about Material Information Parts B & C, which are expected to come into play in autumn this year. Some are in support of the changes and recognise the opportunity it brings, while some are dubious about the impact that it could have on transactions and what it could mean for their already high admin workload.
We’re really keen for more agents to see the opportunity that more information upfront could bring for the industry, having seen first-hand the positive impact that it has had on auction transactions for over a decade.
Here, our Co-Founder Jamie Cooke explains how auction has already demonstrated the success that can come from providing more information upfront.
“For the last 14 years, I’ve seen first-hand the impact that upfront information has had with auction when it comes to speeding up completion timeframes and reducing fall through rates. I believe it’s the key to bringing more speed and security to all transactions, which the industry has been calling out for.
Upfront information is what helps to make the 56-day* completion timeframe of the Modern Method of Auction (MMoA) possible. This is less than half of the average transaction timeframe of Private Treaty, which can take over 120 days^ to complete. With shorter timescales, agents can get paid faster and increase their pipeline turn – big wins, especially in more challenging markets.”
“Since 2009 we’ve captured all information upfront for our auction properties, allowing anyone interested in a property to see its details within an Auction Pack. It means buyers can grasp all of the information needed to help them make an informed decision, before placing a bid. It’s tried and tested and supports fall through rates for auction being as low as 2%**, compared with Private Treaty rates of around 30%^^.
Auction Packs also help to get the transaction prepared in advance, by collecting key documents and information sooner, which ultimately speeds up the conveyancing process. The documents include the likes of Local Authority Searches, Property Information Questionnaires and Title Plans/Registers.”
Agents and consumers have come to rely on auction for its speed and security, knowing that sales will be faster and more efficient and they’ll have a more secure and transparent experience. More information upfront has the potential to be transformational for the industry, in improving the Private Treaty process too.
It could also go some way towards driving a new standard of industry best practice, with more consistency around what information is required and when. This is something we’ve driven for auction transactions, developing a Best Practice Guide which helps agents and suppliers adhere to industry best practice standards.
“Although the full requirements of Material Information Parts B & C are still to be confirmed, it really doesn’t have to be another admin burden for agents. There’s technology out there that will be able to gather all the information.
We’ve used our experience to ensure that our Private Treaty end to end onboarding solution, iamproperty movebutler, puts upfront Material Information at its heart, helping agents to stay compliant without giving them more to do. Agents tell us that movebutler is the helping hand they need when it comes to keeping on top of regulations and the admin parts of their job, without eating into their time.
My view? Ultimately, more information upfront has the power to increase pipeline turn, reduce time spent on sales progression and reduce fall through. I see it as something the industry should embrace and get behind. The benefits speak for themselves.”
With Material Information Parts B and C on the horizon, our Product Manager Tania Bonesi discusses how movebutler can help agents get Material Information upfront.
Now is a good time to check whether your agency is compliant with Material Information Part A before Parts B & C come into effect later this year.
Ahead of the release of new guidance for Material Information Parts B & C later this year, we conducted a survey to gauge the sentiment amongst UK Estate Agents regarding the upcoming changes.
Pre-populated Material Information forms are here!
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