There has been much debate in the trade press of late about how IFA's can increase their income streams.
Those advisers who currently offer mortgage advice to their clients could achieve this by offering associated referrals. And one area where the intermediary can make a welcome impact is in the conveyance process.
Most people currently employ a solicitor or a licensed conveyancer to take care of the paperwork and legalities. This results in a long wait for the client as the process usually takes around eight weeks, often more. And it can be expensive – anything from around £400 plus VAT up to over £4000 for very expensive properties.
Think how much better it would be for the client if you gatecrash this cosy partnership between estate agent and solicitor and slash this waiting time. That’s where the new generation of online conveyancers come in.
As an adviser introducing such a system to the client, you get the praise for speeding up the process. And in a win-win situation, you also make commission on the deal. The intermediary can earn several hundred pounds of pure profit a month with no additional outlay.
Additionally, because of the speed of the process, there is less chance of an abortive application and the intermediary’s income is therefore more secure than with other conveyance services.
The home buying process can be speeded up by over a month, which will ensure that the only feedback that most intermediaries receive will be positive. Even if the purchase falls through then the purchaser pays nothing. The buyer is also protected against the vendor accepting a higher offer.
But be sure to select a quality conveyance partner. The key is to make the entire file electronic, so the client is able to access it on the internet. This means the client has their own inbox and can view correspondence going on between solicitors, lenders, local authorities and searches on secure web pages. They can also reply to correspondence electronically.
A true online system can deliver the purchase of a property by a fully qualified solicitor on average 41% quicker than a traditional conveyancer - it takes only 34 days to exchange and only 43 days to completion. And the big advantage is that not only is the client more informed and therefore feel more in control and empowered, but it also speeds things up.
Having said that, there are many providers out there promising an online service, but very few that actually provide the whole service electronically.
Using technology to speed up the process is vital as we edge toward the arrival of Home Information Packs next month. This will have a big effect on the conveyance process and any intermediaries who are contemplating offering their own HIP should also offer an online conveyance service.
They should consider moving toward a one stop shop for the whole home buying process which will improve customer service and increase their earning potential for little extra effort.
Duncan Samuel is managing director of Convex Conveyancing.
The views expressed are those of the author and not those of the company he represents.IFAonline
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