Estate agents: Top 10 things to watch during the rest of 2023

We’re well into the third quarter of 2023, but there are still plenty of twists and turns in the UK buying and selling market. Viewber has collated the top 10 watch points for estate agents as we see out the latter part of the year.

1. The big pause: estate agents will be acutely aware that any hint of uncertainty in the market results in home movers pausing their plans. This could become an issue between now and the traditional lull before Christmas. Many buyers will consider waiting for mortgage rates to trend downwards before they make their move, while others will anticipate further house price falls and will hold out for better affordability. With Government data already showing the number of provisional seasonally-adjusted UKresidential transactions in June 2023 were 15% lower than June 2022, the remainder of 2023 will need some creative and compelling prospecting.

2. Family homes becoming harder to sell: even with successful prospecting, estate agents may find some properties on their books harder to sell than others, as the race for space is well and truly over. Zoopla’s analysis of July activity reveals that larger homes are receiving fewer offers when compared to previous years. Three- and four-bedroom homes had fallen out of favour with purchasers, with higher mortgage rates and a cost-of-living challenge leading to more modest buying budgets and a renewed interest in flats. Estate agents will need to work harder to find buyers for family homes, with a focus on attractive pricing.

3. Pricing right the first time: attractive pricing in 2023 means realistic pricing. Estate agents will have to manage the expectations of vendors who have witnessed buyers pay over and above the asking price in previous years. Realistic pricing really is in a seller’s best interest, especially as Rightmove’s July House Price Index found that properties that needed a reduction in asking price were 10% less likely to find a buyer than those that were priced right at the outset.

4. Operating to avoid complaints: The Property Ombudsman has fired a warning to estate agents over conduct as market conditions change. Speaking to Estateagenttoday.co.uk, Rebecca Marsh said agents needed to be careful when it comes to instructions, terms of business, fees, charges and termination; marketing and advertising; and communication between offer acceptance and exchange. These were the most common complaints in 2022, with a prediction that seller concerns around valuations and market appraisals will increase this year.

5. Conducting more scrupulous checks: many of the complaints that The Property Ombudsman receives pertain to incorrect details, disclosure and misrepresentation. This can lead to buyers and sellers questioning whether there has been compliance with Consumer Protection from Unfair Trading Regulations(CPR) and a claim potentially being made. Paul Offley, compliance officer at The Guild of Property Professionals, recommends agents check property information questionnaires and EPCs for omissions and errors just as stringently as they check ID during AML checks.

6. Introducing buyers to all mortgage options: all the time the Bank of England continues to increase the base rate, ripples of concern are felt by property purchasers. Estate agents have a greater role to play in giving buyers confidence that there are a range of mortgage options available to them, including temporary measures such as 35-year repayment terms, part interest only loans and remortgaging from a tracker or standard variable rate to a more attractive deal.

7. Extra prudence to prevent fall throughs: there’s never a good time for a house sale to fall through but with every successful sale crucial in the remainder of 2023, agents will want to minimise deals that don’t cross the line. Pre-qualification will play a bigger role in late 2023 – especially when it comes to mortgage affordability. Of note should be Property Industry Eye’s June UK Property Market Stats, which revealed the sales fall-through rate had started to creep up, resting at 27.66%at the year’s half way point.

8. Reassessing for improved EPCs: The latest Rated People Home Improvement Trends Report found 1 in 4 homeowners made an eco-improvement to their property in 2022, while 45% of homeowners are looking at making their home more environmentally friendly this year. With statistics like this, many people will have bettered their home’s energy rating recently and deserve a reassessment to see if they can achieve a better Energy Performance Certificate (EPC) when they come to sell. Viewber now offers fixed-cost, affordable EPCs, with a bank of qualified energy assessors available at short notice – bookable by estate agents using our digital dashboard.

9. Making contact with landlords: almost two-thirds of surveyors questioned by The Royal Institute of Chartered Surveyors said they had seen a rising number of buy-to-let landlords looking to sell their properties, while a survey by Finbri in the spring found 45% of landlords say they would sell up if interest rates rose above 4.5% next month. With the rate now at 5.25%, it could be time to have conversations with jittery landlords in hope of boosting sales stock.

10. Keeping tabs on kerb appeal: in a market where both asking prices and final sales prices are gently tracking downwards, the focus will be on getting the best price for sellers. Offering advice will become more important as we head through 2023 and sellers should know what may be devaluing their property. When it surveyed more than 1,000 UK homebuyers who had purchased a property during the last year, eXp UK found buyers would offer almost £60,000 below the asking price if the property’s exterior made a bad impression. The study also found 78% wouldn’t return for a second viewing if they didn’t like what they saw on arrival.

If you would like to discuss the current property market and discover how Viewber can help your agency in 2023 and beyond, please contact the team. We have a growing range of property visit services that encompass EPCs, viewings, open houses, inspections, key handling, photography, floorplans, 360 degree tours and ‘sit and wait’ appointments.