According to recent data from Rightmove, Thursday 28 March signified the biggest day for the number of new sellers coming to market so far this year. In addition, it was reported to be the third biggest day for new listings coming up for sale since August 2020, with Boxing Day in 2022 and 2023 being the only days with more properties coming to market in one day.
This rise in activity was obviously geared towards capturing the attention of interested parties over an elongated Easter weekend which has long been regarded as one of the most active search periods. How this new seller boost translates into transactional activity remains to be seen, although we are already seeing some slight uplift in business levels for those properties which are sensibly marketed in what remains a price sensitive market.
For any new buyer, it remains vital to be as informed as possible when it comes to the buying decision and this goes way beyond appreciating what a property might be worth, how much they are willing to pay and getting the right level of financial plan in place to service these commitments. There are other important aspects such as the conveyancing process and, of course, the often misunderstood world of surveys.
Inevitably, the advice process will play a key role within this educational process. So, with this in mind, I thought it might be beneficial to pass on our experience from a customer perspective by highlighting the three types of buyers we tend to see and outline how advisers can steer them in the right direction to ensure they are maintaining their duty of care.
- Those buyers who are not sure or don’t think they need a survey because they are getting a mortgage and their lender is doing a valuation. This is the most concerning category as such an approach leaves customers potentially exposed and means they haven’t made a decision based on understanding all of the facts and evaluating all of their options. It’s imperative for them to realise that a valuation is for the sole use of the lender and is not a condition report which the purchaser will receive a copy of.
- Those who know they should get a survey, as it seems to be ‘the thing you do’ but they don’t know why or understand the benefit of this.
- Those who know they need and want a survey. In fact, our biggest supporters are customers who tell us they have been ‘burnt’ in the past by not getting a survey before they completed on a property purchase.
Everyone who is a property professional should be encouraging and supporting customers to make decisions which are in their best interests. When purchasing, having a RICS surveyor provide a professional report detailing the condition of the property is, to me, quite clearly in the customers’ best interests. In fact, this forms part of Consumer Duty in terms of the delivery of good outcomes for retail customers and supporting them through their journey to pursue their financial objectives.
From an adviser standpoint, the first step is to identify which type of client they are dealing with and adapt their approach accordingly. This will ensure each and every buyer have all the relevant information to enter into the transaction with their eyes wide open. This may be in the form of a short discussion, a simple factsheet written in Plain English or a direct referral to a trusted surveying partner who can walk them through their exacting requirements in more detail.
It’s all about empowering people to make their own decisions in full view of the facts. If all three of the above client types know and understand the advantages of buying a property with a survey as well as the risks attached if they don’t, then advisers have fulfilled their duty of care.
It’s then up to the client to appreciate the gravity of whether they want to leave the door open to immediate or future risks, costs, disruption and upset. Or to significantly reduce these risks by being as informed as possible before committing to what is one of the largest purchases they are ever likely to make.
I know which option I’d choose.
Helen Stead is head of Countrywide Home Surveys, Countrywide Surveying Services