16 Apr What is Sales Progression?
Sales progression is the term used to describe the management of the process from the point an offer is accepted on a property to when the keys are handed over to the buyer. It’s a multi-step process involving various parties and requires detailed oversight to prevent common pitfalls that could derail the transaction and lead to lengthy transaction times or fall throughs.
Key Stages Between Offer Accepted and Completion:
Instructing Solicitors: Once a sale has been agreed, both parties must instruct their solicitors or conveyancers to handle the legal aspects.
Memorandum of Sale: This document confirms the sale’s terms and details both parties’ solicitor information.
Searches: These include local authority, environmental, and water and drainage searches to ensure there are no underlying issues.
AML Checks: The Anti-Money Laundering (AML) checks establish whether an individual is involved in money laundering activities and is a legal requirement.
Material Information:
Property Information Forms: Sellers complete these forms, providing detailed information about the property, including fixtures and any relevant leasehold details.
Valuations and Inspections: Buyers may undertake various valuations and inspections to satisfy lender requirements and assess the property’s condition.
Drafting and Reviewing Contracts: Solicitors prepare and review contracts to outline the terms of the sale.
Raising Enquiries: Solicitors handle enquiries about the property, as a result of the earlier searches and other material information. Answers may require input from the seller.
Exchange of Contracts: This legally binding step requires both parties to commit to the sale, with the buyer typically paying a deposit.
Completion: The final stage where funds are transferred, the property changes hands, and ownership is registered with the Land Registry.
Why is Sales Progression important?
Effective sales progression is critical as it significantly impacts the speed of a property transaction and likelihood of fall through. A proactive sales progression process can mitigate this risk by:
- Ensuring all parties are aware of their responsibilities and the transaction’s progress.
- Collating upfront information as quickly as possible
- Identifying potential issues and addressing them swiftly.
- Ensuring communication between solicitors, agents, buyers and sellers is clear and continuous.
- Maintaining momentum between all different parties
Understanding and managing this process effectively is crucial for agents who want to minimise fall-throughs and ensure smooth transactions for their clients. In addition, when your sales pipeline is progressing efficiently so transactions are completed as quickly, you will improve your cashflow.
How can agents improve their sales progression?
The best way for agents looking to streamline their property transactions and reduce the risk of fall-throughs, is to invest in a dedicated sales progression resource, whether that is a staff member in-house, or through an outsourced sales progression company like ourselves. Professional sales progressors are skilled at navigating the complexities of property sales, ensuring that each stage of the process is handled with expertise and precision.
If you are interested in utilising an outsourced service for your sales progression you can quickly find out how much more we could make you each year by entering your average transaction time, the number of properties you currently have under offer and your average fee into our Revenue Calculator tool .
Or if you want to improve your in-house efficiency, check out our Sales Progression Checklist