BLOWING THE DUST OFF CONVEYANCING.

WHEN YOU MOVE.

CONTENTS

Foreword

The market today Beneath the surface Theselectionprocess Lackofgoodconveyancerrelationships Highconsumerexpectations

Consumers at breaking point Theracetothebottom Thenextgenerationofhousebuyers Legalitiesoflaundering

Broker’s side of the story BrokerQ&A

Making the right move Foursimplesteps

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FOREWORD

The quality of service that conveyancers provide can make or break a deal for estate agents. Issues during conveyancing can add up to six weeks to a sale, slowing down and even risking revenue for estate agents. This is putting pressure on conveyancers to deliver a fast and efficient service while the marketplace is also forcing them to drive down their prices and take on more work.

In this report, conveyancing law specialists When You Move looks at the growing expectations from consumers, the pressure that this is having on estate agents and the impact on their relationship with conveyancers.

When You Move surveyed over 100 estate agents and brokers to understand the current relationship between estate agents and conveyancers, the challenges they’re facing and what can be done to improve communication, speed up completion times and ultimately move the market forward.

Is the love really lost between estate agents and conveyancers?

We hope you enjoy the read!

Simon Bath Managing DirectorWhen You Move simonb@whenyoumove.com

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Beneath the surface

Estateagentsandconveyancersnaturallyhavetohaveacloseworkingrelationshipinordertokeepthehousebuyerhappy.Withover78%ofintroducersratingtheconveyancerstheyworkwithas‘Good’or‘Excellent’,itseemstherelationshipisstrong.

However,digalittledeeperandyou’lldiscoverthefactthattherelationshipisnotasstrongasitseems:87%ofestateagentswouldbeopentoworkingwithanewconveyancer(Seepage8formoreinformationonestateagents’andconveyancers’relationships).

Excellent35%

Good43%

Adequate17%

Poor5%

THE MARKET TODAY

When You Move surveyed over 100 estate agents and brokers to find out whether they really rate their conveyancing partners.

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Perceptions of Conveyancers

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1WYMConveyancingIntroducerSurvey2015

WYMConveyancingIntroducerSurvey2015

78% rate their conveyancer as good or excellent.

Takingintoaccounttheseresponsesfromestateagentsandbrokersweneedtostrikeabalancebetweengettingthingsdoneinatimelymannerandgettingthemdonethoroughly.Onerespondentsuggestedthatthisishardtoachievewiththecurrentculture.Whilethereisnofocusontimescalesfrombothpartiesitisdifficulttoaddressthisproblem.

“Estate agents want to push things through. Solicitors want to work at their own speed.” -Brokerrespondent,WYMConveyancingIntroducerSurvey2015

“Agents want a solicitor who can get the job done in a timely fashion... All too often solicitors find matters still to be dealt with at the very last minute. Leaving it until crunch time puts all parties under pressure and creates anxiety. It can cost a deal, worth thousands of pounds, in lost commission.” -EstateAgentrespondent,WYMConveyancingIntroducerSurvey2015

“[Timescales] are not alterable because the system can only be as fast as the slowest link. Until [businesses] are paid on results or there is a complete change in culture, this is how it will be.” -EstateAgentRespondent,WYMConveyancingIntroducerSurvey2015

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“Generally, estate agents and solicitors are not pals.” -Brokerrespondent,IntroducerSurvey

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This is what we heard from our research with estate agents and brokers. It seems that there is one major sticking point that is preventing the market from moving forward: Time.

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The selection process

Notonlyareintroducersopentoworkingwithdifferentconveyancers,buttheyareactivelylookingtorefreshtheirlistofrecommendedconveyancersandsolicitors.Infact,45%ofestateagentsregularlylooktoimprovetheirpartnersastheyconstantlychaseabetterservice.

Thiscanhaveabigimpactonthebusinessthatconveyancersreceiveas60%ofhomemoverschoosetheirconveyancerbasedonathirdpartyrecommendation.2

Themajorityofestateagents(88%)createtheirownlistofrecommendedsolicitors/conveyancers.3

“We only use 20 legal firms. For us it’s about a streamline approach, efficiency. Each local office will have three to four to choose from within that panel.” –ConveyancingManager,EstateAgent,WYMConveyancing IntroducerSurvey2015

Listfrom headoffice

Listfrom Localoffice

Ihavemy ownchoices

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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Selecting a conveyancer

45% regularly look to improve their panel of conveyancers.

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Estateagentshavespecificaspectsthattheylookforintheconveyancerstheyworkwith.Themostimportantattributeisafastspeedofclosureandahighqualityofcommunication.Conversely,locationandreferralfeearetheleastimportantqualities.

“The most important thing for us would be communication. 99% of buyers and sellers have the common misbelief that the agent is responsible for updates when we are merely there to monitor. It is frustrating when we get clients disappointed with lack of movement and we have left multiple messages for their solicitor.” –ConveyancingManager,EstateAgent,WYMConveyancing IntroducerSurvey2015

0 20

[Numberofvotes]

Mostimportant Secondmostimportant

40 60 80

Speedofclosure

Qualityofcommunication

Location

Referralfee

Likethemasaperson

Most important attributes of a conveyancer

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WYMConveyancingIntroducerSurvey2015

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Lack of good conveyancer relationships Poorlydeliveredconveyancingcanslowdownthehousebuyingprocessandevenriskrevenueforestateagentsandbrokers.Itisnowonderthenthat87%ofestateagentswouldbeopentoworkingwithanewconveyanceriftheirpersonalcriteriawasmet.4

Thereislittleevidencetosuggestthatestateagentsareloyaltotheirconveyancers.Yet,thisseemstocontradictthefactthatestateagentsholdtheconveyancerstheyworkwithinhighregard.Ifficklerelationshipscouldevolveintostrongpartnerships,thewholeprocesscouldbehonedanddevelopedasbothsideslearneachother’sworkinghabits.

Thedisconnectbetweentheappreciationofgoodserviceandlack ofloyaltycouldstemfromthefactthatthebarforgoodqualityis setsolow(duetothefactorsmentionedabove).Byhavingalowstartingpointforwhatisconsideredgoodservice,itiseasyto exceedtheselowexpectations.

YesNo

Don’tknow

Weregularlylook toimprove

Occasionally,whenwegettime

Never,Ican’trememberthelasttime

0% 10% 20% 30% 40% 50%

Estate agent loyalty

Do you recommended non-local conveyancers?

How often do you update your recommended conveyancer list?

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87% would be open to working with a new conveyancer.

High consumer expectations Inatraditionalmarket,itisunsurprisingthatolderconsumersaremorehappywiththeirconveyancingservicethanyoungerconsumerswhofindthetraditionalapproachslowandfrustrating.

Priceandlocalknowledgearenolongerkeyfactorsintheselectionprocess5 butconveyancersareexpectedtobe‘allrounders.’

Consumersareincreasinglyexpectingahigherservicewithqualityofcommunicationsandspeedofclosurebeingthemostimportantattributesofaqualityconveyancer.6Theyseeproactivity,professionalismandproblem-solvingasparamountwhenworkingwithconveyancers.7

Thisnotonlyputspressuresonconveyancers,butalsoestateagents:howcantheyaccuratelypredictcompletiondatesifthecommunicationisfracturedandtheinfomationisincorrect?

0%

Proactive

Professionalism

ProblemSolving

Goodcommunicator/rapport

Experienced

Recommended

Price

Localknowledge

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Reallynotimportant Notthatimportant Quiteimportant Reallyimportant

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The importance to you when selecting a conveyancer/solicitor

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The race to the bottom

Peoplearewillingtopaymoreforabetterservice,butthisdoesnotmeanthatpriceisn’tafactor.

TheHomeMovingTrendsSurveyin2013revealedthatoneoutofeveryfivehomemoverspickedthecheapestconveyancer.Ifalowlevelofserviceisexpectedinthefirstinstance,thenmanywouldarguethattheydon’twanttopaymoreforamediocreservice.Iftherewasanoptiontoreceiveaguaranteedhigherlevelofservice,thenpeoplemaybepreparedtopayforit.

Conveyancersareracingeachothertothebottomofthepricingladder,butcheapdoesn’talwaysmeanthebest.

Peoplearepurposelyusingcheapconveyancerswith82%ofpeoplesayingcostisanimportantfactorwhenchoosingaconveyancer.Thismeanstheselectionisoutofthehandsoftheestateagents.13%ofpeoplethengoontoexperienceandunexpectedincreaseincostincurredbytheconveyancerwhenbuyingtheirproperty,whichshowsthatpricecannotalwaysberelieduponasaselectioncriteria.

CONSUMERS AT BREAKING POINT

As consumers look to select a conveyancer, factors such as price and the level of service are taken into consideration. The ideal conveyancer offers a quick, reliable service for a reasonable price, but as conveyancers race to the bottom of the pricing ladder, this is not neccessarily attainable.

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Consumersconsiderlegalitiesanecessaryevilandtheyoftenjustlooktotheirintroducerstorecommendaconveyancerwhowillminimisethecosts.However,as45%ofthosewhodidn’tchoosethecheapestconveyancercanbeconsideredpromoters,whereasonly24%respondentswhodidarepromoters.8

Promoters by age group

Promoters by price of conveyancing

0%21-29 40-49

(Age)

(Percentagethatwouldrecommend)

(Percentagethatwouldrecommend)

30-39 50-59 70+60-69

5%

10%

15%

20%

25%

30%

35%

0%Didn’tchoosethe

cheapestconvenyancerChosethe

cheapestconveyancer

5%

10%

15%

20%

35%

25%

40%

30%

45%

50%

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8IntroducerSurvey

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The next generation of house buyers It’snosecretthatpropertyisatraditionalmarketthatstillusesconventionalmethods.ConveyancersevenhavetoundertakeChancelrecordchecksdatingbacktoMedievaltimes.Butinaprocessthatinvolvessomuchbackandforthofhighlytechnicaldocuments,theuptakeoftechnologycouldbehighlybeneficial.

Millennials’shoppinghabitshaveevolvedwiththeriseofeCommercetotheextentthattheybelievetheycanbuyanythingonline,fromtheirweeklygroceryshoptoahouse.There’sanexpectancynowfromthisgenerationthatyoucansetupalertsonRightMoveandsellyourhouseonPurpleBricksandhaveapredictable,lowcostfeefordoingso.

Therehasbeenalimiteduptakeoftechnologyintheindustry,althoughthishasacceleratedinthelastsixmonthswiththelikesofPurple BricksandeasyPropertybecomingpopularalternativestothehigh streetagencies.

Additionally,firsttimebuyersarefindingtheirmarginssqueezedmorethaneverbeforeandwilllooktosavemoneywherevertheycan.Payinganestateagent1%canactuallybeasignificantfeethatcouldbespentelsewhere–buyingonlineeliminatesthatfee.

PurpleBricksisagreatexampleofhowrealestateisslowlyedgingforwardintermsoftechnologyandhowtechnologycanhelpthehomebuyingprocess.Theonlineagencydescribesitselfasthe‘world’sfirst24/7estateagentthatcombinesthehumanfaceoftheestateagencymodelwithaunique,interactivedigitalapproach.’ Aswellassmoothingoverandspeedinguptheprocess,technologycouldalsohelpintroducerstounderstandtheirclientsmorebyopeningupanotherstreamofcommunicationandenablingthemtomonitortheprocessasitprogresses.

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Legalities of laundering TheSolicitorsRegulationAuthority(SRA)estimatesthatupto£57billionislaunderedthroughtheUKeveryyear,andlawfirmsareoneofthemaintargets–makingconveyancingoneofthebiggestsourcesoffraudintheUK.9 Itisalltooeasytoleavemoneywithaconveyancerunderthepretenceofadeposit,thenreturninafewweekstowithdrawthemoneyhavingdecidednottogothroughwiththepurchase.Themoneyhasunwittinglybeencleanedbytheconveyancer.Thiswastestimeandmoneyforallinvolved.

MoneylaunderingisrifeacrossthemarketandregulationfromtheSRAandtheCouncilforLicensedCoveyancing(CLC)istryingtoensurethatitisstampedout.Forcompliance,antimoneylaundering(AML)checksneedtobeputinplacetoensurethatthisisnotathreattobusiness. Ensurethattheconveyanceryou’reworkingwithmeetsthefollowingcriteriatoeliminatetheriskofmoneylaundering: FSAregistered

AsksforIDdocumentsfromclientsi.e.utilitybill, passport,drivinglicense

Customerduediligence(CDD)isused

Providetrainingtostaff

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Conveyancing is one the biggest sources of fraud in the UK.

9http://www.sra.org.uk

1.Howdoyourateyourcurrentrelationshipswithyour conveyancerpartners?Someareok,butsomearereallybad.Oftentheystandinthewayofgettingbusinessdoneasfaraswe’reconcerned.

2.Whatwouldyouliketoseebeingimprovedintheindustrytoimprovecompletiontimes?Thewayconveyancersoperateisveryself-centred.Theydon’tunderstandtheprocessandareboggeddownwithwhatthey’retryingtoachieve.Theydon’tseetheprocessaroundwhathappensanddragtheirfeet.

3.Whatfrustratesyouthemostaboutthehousebuyingprocess?Conveyancingisservicedriven,sowe’rechoosingbasedontheservicetheyoffer.Theintroductionfeecanhaveanimpactbutit’sreallywhethertheyallowustospeeduptheprocessofthetransaction.Iftheclientischoosingtheconveyancerthenwehavelittleornosayinwhathappens.Ifthelenderchooses,wehavenosayatall.

4.Wheredoyouseethefutureheadingforestateagents,brokersandconveyancers?Whatchangeswilltheybeforcedtotakeovercomingyears? We’reallinthis–theestateagentwantstocontrolthewholething–theywillwanttoputtheconveyancerinplace,butsodowe[thebroker]sofromtheveryfirstpointwe’reatloggerheadsaboutwhoseconveyancerisgoingtobeused.Everyonewantstocontroltheconveyancerbecausethatultimatelycontrolstheflowofmoney.

BROKER’S SIDE OF THE STORY

We spoke to Simon Marzell of Insight Private Finance Limited to further understand his view on the conveyancer vs estate agents/broker relationship.

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Simon Marzell Founder Insight Private Finance Limited

MAKING THE RIGHT MOVE

Technology first conveyancer When You Move focuses on delivering exception service in four key areas to ensure the relationship with its consumers, brokers and estate agents partners is flawless.

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EfficiencyThehousebuyingindustryoperatesonaveryconventionalbasis,madeupoflotsofmanualprocesses.WhenYouMove’suniqueCRMplatformconnectstheconsumer,estateagent,broker,removingtheriskofmanualerrorsandmoreimportantlyspeeds uptheentireprocessthroughreal-timeautomation.

TransparencyTodealwiththisreactivenature,transparencycanhelptoseeexactlywhatpointeachpartyisat.WhenYouMoveofferstheestateagentsandbrokerscompletetransparencyoutliningstatus onkeymilestonesandtasksthroughthewholeprocess.Thedashboardalsohighlightscompletiondatesandmoreimportantlywhentheycanexpecttheirprocuration/referralfee.

Quality customer serviceByusingtechnology,customerservicecanbeimprovedbyconstantlyknowingwhatishappening.Ourreal-timedashboardkeepsyouconnectedwithyourconveyancer24/7.Estateagentsandbrokerscanlivechatwithyourdedicatedconveyancing accountmanager.

Real estate for the digital generationEstateagentsneedtobeworkingwithconveyancerswhohavestateofthearttechnologybehindthem.Theyneedtounderstandthenextgenerationofhomebuyerswhoprefertodothingsonline.Morethan50%ofmillennialssearchforhomesontheirphonesand,amongthose,26%endupbuyingthiswaytoo,accordingtodatafromtheNationalAssociationofRealtors.10 WhenYouMove’sCRMconvenientlypullsthroughkeyinformationonasinglecaseintoahandyappwhichyourcustomerscanaccess24/7togetupdatesandnotificationsonwheretheyareintheprocessinreal-time.

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10http://money.usnews.com

ACT NOW

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Thetimeisnowtoaddresstheseissuesandchangethewaythemarketworks.Bysettinghigherstandardswithintheindustry,relationshipsbetweenestateagentsandconveyancerscouldbecementedandpartnershipsforgedtoworktowardsamoreefficienthousebuyingprocessforconsumersandmeettheirhighexpectations.

Introducingtechnologytoanantiquatedindustrywouldhelpimproveefficiencybyspeedingupprocesses,providetransparencysothattimescalescouldbeadjustedrealisticallyandintroduceahigherlevelofcustomerservice.

Byprovidingahigherstandardofefficiency,transparencyandcustomerservicetotheindustry,WhenYouMovehopestoenablelonger-termcommitmentsbetweenintroducersandconveyancers,creatinglastingpartnershipsandraisingindustrystandards.

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By setting higher standards within the industry, relationships between estate agents and conveyancers could be cemented.

About When You Move

WhenYouMoveistheonlytrulytechnology-firstconveyancingbusiness,combiningyearsoflegalexpertisewithindustry-leadingtechnologytoplacecustomerserviceandefficiencyattheheartofeverythingwedo.

Ourinnovativedashboardandmobileappensurethatconveyancingiscompletedefficiently,withproactivestatusupdates–foryouandyourcustomer–everystepoftheway.You’llneverbeinthedarkaboutstatusorprojectedcompletiontimesagain.

Whetheryou’reanestateagent,mortgagebrokerorfinancialservice-provider,yourbusinesswillbesetupwithourstateofthearttechnology,whichcanbeeasilyintegratedintoyourexistingsystems.

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