"The final stage of progressing a sale from sold subject to contract through to completion simply doesn’t move at the same pace and this can prove problematic for agents, as they try to avoid the number of potential pitfalls that can cause a transaction to collapse"
- Gemma Young - Moverly
Market insight from Material Information and digital property pack provider, Moverly, has found that in the time it takes to progress an offer through to completion, the average value of a home can change by as much as £12,500, highlighting the difficult task facing agents when it comes to avoiding potential issues such as down valuations or a change of heart on the side of buyers or sellers.
The analysis by Moverly shows that it currently takes an average of 112 days to progress a sale from the point an offer is accepted and the property is sold subject to contract through to completion. This equates to almost four months (3.7) during which the transaction is susceptible to collapsing due to a number of reasons.
Further analysis shows that over the last four months, the average sold price of a property across Britain has increased by £5,548 when comparing current market values to those secured four months prior.
Of course, regional differences within the market mean that the value of a home can swing by a far greater margin in the time it takes to progress a sale from offer accepted to completion.
In London, the average home is currently worth £12,507 more today than it was just four months ago, with home sellers in the West Midlands, South West, Scotland, the North West and Yorkshire and the Humber also more than £5,000 better off today than they were 112 days ago.
Gemma Young, Moverly CEO, says: "The property market is a peculiar beast and we’re used to hearing about the pace at which it can move, both with respect to homes going under offer, as well as the rate of house price appreciation.
"However, the final stage of progressing a sale from sold subject to contract through to completion simply doesn’t move at the same pace and this can prove problematic for agents, as they try to avoid the number of potential pitfalls that can cause a transaction to collapse.
"One of the most common threats is the dreaded down valuation and in cooling market conditions, it’s not unusual for mortgage surveyors to value a home at a lower price than already agreed, particularly if market volatility is at a high.
"Then there’s managing seller expectations, who may quite rightly feel short-changed should their property have increased considerably in value since the point they accepted an offer, especially if they are still some way away from actually completing.
"The provision of comprehensive and upfront Material Information can help combat such issues, allowing agents to proceed with a sale at a greater pace and with increased security from potential fall-throughs. In doing so, they can reach the finish line more quickly, ensuring that any deal agreed hasn’t been made redundant from notable swings in market values.”
