Avoid at all costs? More upfront information may scupper your sale
Changes to the details contained in property listings could lay bare a whole host of problems that may put off potential buyers. The issue concerns ‘material information’, and the Government’s quest to make purchasing a property much fairer and transparent for buyers.
A change to ‘material information’
Estate agents are bound by the Consumer Protection from Unfair Trading Regulations 2008 when it comes to writing property descriptions and they are obliged to include ‘material information’ when marketing a property. These are the facts that will influence a purchaser’s decision, such as the home’s sale price and how many bedrooms it has.
In February 2022, National Trading Standards announced that the ‘material information’ rules for agents were being amended. From May this year, it wants what it calls ‘unavoidable costs’, such as the council tax band and any deposit required, to be listed upfront.
Two further sets of changes are due to follow, and it is the detail of the new disclosures that should worry some sellers. National Trading Standards wants it to become mandatory for aspects such as non-standard features, restrictive covenants and the flood risk to feature openly on property listings.
More transparency is wanted at the very top
National Trading Standards‘s intentions were announced at the same time as the Government’s Levelling Up the United Kingdom White Paper was published. The Paper points to a fairer property buying system as a result of more information being provided to purchasers upfront. Currently, sellers are only asked to disclose a number of property-related aspects on the TA6 form during the conveyancing process – after people have emotionally invested in the purchase.
The end of the heart ruling the head?
The advance disclosure of more material information is going to provide multiple red flags for buyers. Knowing too much at the start will prevent many people from falling in love with a property, killing off those judgements that are based purely on location, style or aesthetics. Quick decisions ruled by the head will be made before the viewings and offers stages, meaning vendors will miss out on the potential buyers who make offers based on a gut feeling.
Negotiating may become a thing of the past
For many buyers, almost every issue can be overcome during the negotiation stage – the period between the first offer and exchange. Having to disclose more – and often detrimental - information upfront will mean many sellers will never get the chance to haggle with a buyer, as purchasers won’t even make an offer in the first place.
Who should be worried?
Sellers who have a ‘problem property’ should be concerned about more revealing information being made a compulsory requirement during the marketing stage. For example, those whose property: is of a non-standard construction; suffers from subsidence; has experienced flooding; has a lease of less that 70 years; has Japanese knotweed; is not connected to mains drainage or the National Grid or is under a flight path may be forced to disclose such aspects in advance.
Will a High Street agent be able to sell my property?
If National Trading Standards and the Government get their way, High Street estate agents may find it very hard to sell a problem property, as their database of open market buyers will be put off by a property’s negative features. This is where Move Places holds a major advantage.
We have a network of thousands of purchasers and investors specifically looking for non-standard properties to develop or flip. Our clients are actively requesting dwellings that mainstream buyers overlook – perhaps those that are unmodernised, are dilapidated or have unfinished building work. Move Places also deals with keen cash buyers who don’t need a mortgage, therefore issues such as Japanese knotweed, subsidence and short leases don’t worry them.
Specialists in problem property sales
Whether or not a greater amount of upfront information is required by law, Move Places specialises in the sale of all property types, no matter the sizes or condition. If you are worried about the desirability of your property, or have had a sale fall through due to unfavourable survey results, get in touch with us today. Move Places pledges to sell any home within 28 days, with a cast-iron guarantee backed by our cash buying sister company.