News
In the loop - November
Our Developers Continue To Shine As The Market Dulls
15 November 2007
There seems to be a general consensus throughout the property world that it is getting harder and harder to gain instructions and sell property. This is exacerbated by the steady rise in oil and food prices and the subsequent rise in inflation, which leads to a fall in disposable income and therefore less to spend on property.
Tough market conditions are forecast for the near future. Although the Northern Rock crisis has subsided, reverberations of the credit crunch in the US are still being felt.
In a recent interview for the BBC, Bank of England Governor Mervyn King said; “It’s likely to be several months before banks return to normal after the Northern Rock crisis - it will take that long for banks to disclose all the losses from financial instruments linked to US sub-prime mortgages”
However, more optimistically, movewithus director Robin King says; “We believe that it is always possible to perform well despite tougher market conditions. Some of you may remember the recession of the late 80s and how severely it hit the property industry. The companies that survived the crisis were those who were willing to adapt to new market conditions by evolving their business practices”
We have been working hard to continue to sell for our developer clients. Our strategy is simple – training, initiatives and incentives for our staff and member agents.
We have invested in extensive staff training to ensure that all departments are up to date with the most efficient processes to perform in difficult market conditions. We have launched a ‘Christmas Champagne initiative’ with our member agents, encouraging them to look for new and innovative ways to sell corporate property, the most effective of which are being implemented. We have been visiting stock part-exchange properties and estate agents and making recommendations to ensure corporate properties are being proactively marketed.
In a tough market, one of the most important parts of the selling process is accurate initial valuations. They ensure that a developer’s part-exchange property is marketed at a realistic price that is likely to sell quickly.
movewithus director Russell Cade added; “movewithus’ success is built on honesty and transparency. We’re making sure that agents value properties quickly and fairly. Our valuations are calculated using a number of independent assessments, ensuring complete fairness. Developers who have accepted our recommendations have continued to sell their second hand stock despite tougher market conditions. Everyone needs to be aware that if properties are overpriced in a tough market, they simply will not sell, meaning that on assisted sale, a customer could lose their dream home”
movewithus recently held ‘valuation workshops’ for member agents. Lorraine Cooper, part-exchange manager for Taylor Wimpey, was brought in as a guest speaker to explain the importance of accurate valuations from a developer perspective. In addition, Ben Greco, Secure Home Purchase director, gave a talk on how to avoid abortive work by working smarter, not harder. Service level agreements were agreed with member agents, clearly stating the standards and deliveries expected.
The workshops were phenomenally successful and a prime example of movewithus’ philosophy of the sharing of information to ensure best practice methods are being implemented that benefit all parties.
Our efforts are paying off for our developer clients. We are processing record numbers of valuations, up 15% from last month – that means 15% more developer property on the market at accurate prices ready to sell. By working hard and evolving our business strategy to cope with new market conditions, we have seen our part-exchange sales rise by a staggering 59% this month.
The overall purpose of these initiatives is simple – to continue to sell developer part-exchange stock in tough market conditions. This means giving customers all the assistance they need to get their existing property sold by making sure that it is valued at a realistic price and proactively marketed using accredited agents.
In a tough market, movewithus will provide service unlike any other - a proactive sales approach that continually evolves to meet the demands of a changing market.
Adapted from http://news.bbc.co.uk/1/hi/business/7079520.stm
