Memorandum by Maria Coleman FNAEA CertREA,
M.Coleman Estate Agents (DHB 02)
I write as an independent estate agent in Bristol
with two offices, one in Kingswood-urban city housing and this
office has a staff of four full-timers and two part-timers. The
other office in Downend, Bristol, with a staff of four full-timers
and one part-timer. This second office is the more prestigious
type of housing.
I would welcome the opportunity of giving a
presentation to the Select Committee as I believe my first hand
experience over a seven-year period would be invaluable to provide
evidence of how "Home Information Packs" actually work
in the real world. My company has done over 700 of these packs
and I can provide innumerable case histories whereby sales have
been saved by having the preparation of information carried out
in advance. I would like to explain how much heartache this saves.
I started doing "Sellers Packs" in
1996 from my Kingswood office, low cost housing and at that time
the average three Bed Victorian Terrace with ground floor bathroom
was in the region of £38,500. Lovely ordinary hard working
people with very little spare cash, they took pride in their homes,
but in the main whilst the cosmetics of the properties looked
fine, the major problems beneath the surface caused problems at
time of sale eg timber and damp, electrics, roofs, subsidence
etc. All solvable, if one knows about these things in advance.
I can provide proof!!
We have learnt by our mistakes over the years
and believe we have now perfected the solutions to the benefit
of the consumer and thus this has also improved my business results.
My sellers have a choice, the traditional route
or the sellers pack route. 98% of my private vendors with homes
older than ten-years old, choose the sellers' pack route. The
Consumers love it!!
My fall through rate was 26%—it is now
4.6% and those fall throughs are usually on the properties without
a HIP. An amazing change for my business, but an incredible benefit
to the customer. My withdrawal rate was 28% it is now 3%. We charge
them no up front fee in advance, we carry out a diagnostic survey
with all the necessary reports commissioned, the buyer is able
to read the survey free of charge and we give everyone a secure
pin number to read their on line sales tracking 24 hours a day.
How good is that—of course the consumer loves it, they get
complete transparency and certainty that the deal will go through
first time around. There can be no doubt this is a much better
way of doing business, more work for the property professional
in the first instance—but that is why they get paid a fee.
However, time saved later on in the transaction by not having
to be reactive about failed sales more than compensates for the
extra work at the beginning.
I would urgently ask for an interview, we have
insurance products, eg withdrawal insurance to protect the consumer
and insurance of last resort to indemnify the pack.
I would also be willing to ask some of my consumers,
both sellers and buyers to comment, if you so wish.
Maria Coleman FNAEA CertREA
M.Coleman Estate Agents
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