Home buying and selling reform: What does it mean for sellers?

Sellers who are prepared for the changes are likely to enjoy smoother and faster completions. Let’s consider what they can expect. 

Upfront information and sales packs

Part of the current problem is that the home-buying process can be drawn out. Once an offer is accepted, it takes on average 120 days to complete. Worse, things often go wrong late on, meaning people not only waste money but also months of planning and stress. And, of course, everyone in the property chain can be affected.

The new system will require sellers to provide the necessary information on their property before it’s listed. This way, potential buyers can enter into the process with their eyes open and avoid discovering issues down the track. It should also speed up the conveyancing as the solicitors will already have lots of the key information.

Exactly what these sales packs will look like is yet to be decided. But they will be digital and include details of the following:

• seller ID verification
• the chain status
• the property’s general condition
• title information, including the deeds and known covenants
• property type and floor plan
• EPC (energy performance certificate) rating
• standard search results

Here’s more government info on the proposed sales packs.

Earlier binding agreements

As it stands, buyers don’t need to commit financially until late in the process, which can mean sellers face unsettling tactics like gazundering and avoidable fall-throughs, causing much frustration, to say the least.

The reform seeks to introduce contracts between buyers and sellers that secure both parties’ commitment to go ahead with the sale (while allowing people to drop out for legitimate reasons). The government will work with industry professionals to decide on penalty fees that are both fair and effective in encouraging people to honour their commitments.

A shift to digital records and new technologies

The government is keen to digitalise much of the record-keeping admin, including signatures, identification and anti-money laundering checks. This should allow property professionals to exchange data quickly and securely, plus reduce the risk of fraud.

The home sellers and buyers themselves will be able to track their progress through the stages – so everyone knows what they’re waiting on.

More generally, there’ll be a move to replace outdated, paper-based systems with new technology. For example, conveyancers could be supported by AI tools to work more efficiently.

Possible formal qualifications for estate agents

Currently, the role of estate agents isn’t set out by clear industry standards and therefore consumers don’t always know what to expect. The government will consider introducing mandatory qualifications and a code of practice. All estate agents should then be equipped to support the new way of working.

Final thoughts

Changes to the property buying and selling process will be phased in over the next few years, with the sales packs established before the binding contracts are brought in. Since this represents what the government calls a ‘once in a generation reform’, sellers need to prepare for what’s ahead.

An experienced estate agent can guide you through the various steps, from organising the sales pack to making sure you benefit from an efficient, digitalised system. If you’re thinking of selling, get in touch with your local Winkworth office and talk about your best strategy.