As estate agents across the UK return to a more traditional form of agency where hard graft is required find buyers and get deals across the line, Viewber explores how to navigate the increasingly challenging market conditions
Whether it has been a sudden realisation or the slow creep of inevitability, estate agents know that as we move through autumn and into winter, the days of properties virtually selling themselves are over. Branches across the UK will be returning to a more traditional form of agency where hard graft is required to win valuations, find buyers and get deals across the line. Increasingly challenging market conditions usually means increasing workloads.
The pandemic boom is over
It was only two years ago buyers were clambering over each other to secure bigger properties in more rural locations, making offers on properties without viewings, relying on cheap credit and gazumping. It was a case of ‘the more bedrooms the better’ as people sought to distance themselves from everything and sometimes, everyone.
Fast forward to 2022 and homeowners find themselves in a very different predicament – one that could shape the market for the rest of the year. While the mainstream press is quick to talk up a chaotic and potentially troubled time ahead, the very circumstances they are using as the portent of doom will potentially fuel a busy time for estate agents.
Buyers? They want it NOW
Firstly, the most pressing issue impacting the resourcing of agency offices is rising mortgage rates. While an affordability squeeze will result in some purchasers pausing their moving plans, those who have a mortgage offer in place will be experiencing a sense of urgency to find a property, undertake viewings and make an offer before their rate is withdrawn or expires.
“New levels of relisting and remarketing properties are to be expected, reminding agents that we are well and truly moving back towards more normal trading conditions”
Even when the memo of sale has been issued, an agent will need to push the transaction through exchange and to completion before the mortgage offer lapses. Sales progression will take up more of the working day, leaving agents torn between desk-based tasks and on-the-road activities, such as viewings and valuations.
It is the latter two points – viewings and valuations – that will put estate agents under additional pressure. Predictions of a self-imploding property market are wide of the mark so far. Instead, autumn 2022 marks the return of the seller.
As we have written about recently, both Rightmove and the Landmark Information Group’s latest figures show more homes for sale are coming to market. That marks an increase in agents being called to value properties, and more homes for buyers to go and view.
The race to offload space
A further report released in October shed light on why sellers are suddenly keen on a ‘for sale’ sign to go up. The latest Property & Homemovers Report from TwentyCi indicates property trends are changing and home movers are taking rapid action. Its report for the third quarter of 2022 shows homeowners appear to be downsizing amidst a cost-of-living crisis.
Those rural four-bedroom homes that were at a premium during the pandemic are now proving more costly to heat, power and maintain. It’s an educated guess that valuations of larger properties will go through the roof, while there will be an increased demand for viewings of smaller modest two- and three-bedroom homes – especially those with the best EPC ratings.
Be ready to be desk bound
While we singled out sales progression as a time-zapper this autumn and winter, agents will have to prepare for additional amounts of other administration. The Property & Homemovers Report also indicated that fall through rates were on the rise, reaching 20% of all transactions. New levels of relisting and remarketing properties are to be expected, reminding agents that we are well and truly moving back towards more normal trading conditions.
A more thorough pre-qualification of buyers will also be needed if fall throughs continue to rise. Agents will need to be extra thorough when it comes to chain checking, financial security and the proceed-ability of buyers – time consuming tasks but essential when every sale will count.
On a similar note, agents will have to reacquaint themselves with the art of negotiation. As soon as buyers get a whiff of stagnating – or even falling – house prices, they will adjust their offers accordingly. The first signs are already there, with house prices staying the same between August and September 2022, according to Nationwide.
This was the first time in 13 months that house prices hadn’t risen. Agents will also be faced with purchasers who are left with no other option than to negotiate, a result of their personal budgets having changed during the buying process.
Expect to manage seller expectations
Finally, it’s not just buyers who agents will need to negotiate with. Seller expectations will need managing in a way not seen since pre-pandemic conditions prevailed. Agents will need to stay on top of current market demand and advise vendors accordingly.
An emerging trend has already been noted by Rightmove, who found there was an increase in seller’s reducing their asking price in the two weeks after September’s 2022 mini-Budget.
Interestingly, the portal’s survey of estate agents in early October 2022 found 54% of agents admit today’s sellers have to be more open about pricing their homes realistically, or would be willing to consider lower offers.
Preparing for the autumn and winter property market is about having resilient resources that can quickly adapt to incoming trends, without increasing fixed overheads. Viewber offers a flexible, ‘pay as you go’ support service designed especially for estate agents who need to spend less time at properties and more time at their desks.
- Contact us to discover our full range of viewing, visit, marketing and inspection services – by the appointment or by the hour/day
Housing Digital Stakeholder Viewber offers a wide range of property services to the UK Housing Sector, working collaboratively with organisations to offer, via an intuitive portal and app, access to a fully nationwide network of trusted, vetted and local ‘Viewbers’.
Image: Suzanne Tucker/Shutterstock
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