Design a better house buying/selling system.

Running_Horse

The only thing people here seem to agree on is that the current system is not ideal, so here are a few ideas written on the back of a fag packet:

1. Scotland seems to be offers over, with England offers under. So first I would bring in fixed prices (take it or leave it), and if a property was overpriced the market would force the price down.

2. Next, too many sales seem to fall through due to change of mind, or using survey as an excuse to withdraw or drop price. So bids would be binding with independent surveys available in advance, like HIPs but perhaps to be paid for after the sale goes through.

3. The other moan on here is legal delays. So if lawyers/buyers/vendors did not act in a reasonable timescale, there would be financial penalties.

If any of these are unworkable, what would you do to make the system better?

Debt_Free_Chick

Whilst our system is not perfect, personally, I wouldn't change it. What needs to change is the expectations of buyers & sellers so that everyone is more reasonable about what can be achieved within certain timescales.

All too often someone will get het up about an issue with a buyer/seller in another part of the chain - but they, themselves, would probably behave in the same way if they were in that position.

The process for business deals is no different - there is a period of due diligence/negotiation and the deal is only done when all the wrinkles have been ironed out.

The difficulty with house sales is that there is far too much emotion involved. If we could adopt a more business-like attitude, I'm sure we'd find the process a whole lot less stressful.

Just my two-penneth

Romani_Ite_Domum

1. Remove EAs from the process.
2. Introduce a workable HIP system so that there are no surprises.
3. Soicitors & LAs to join the modern world and do a lot more electronically.
4. Deposits held by solicitors on agrremnet of price, to stop people messing around.

pickles110564

Romani_Ite_Domum wrote: »

1. Remove EAs from the process.
Agreed they never earn the money they charge
2. Introduce a workable HIP system so that there are no surprises.
Make sure that it is comprehensive enough to cut out buyers doing own survey
3. Soicitors & LAs to join the modern world and do a lot more electronically.
with easy access to buyers/sellers/LL's and tenant's
4. Deposits held by solicitors on agrremnet of price, to stop people messing around.
And they pay out interest on your money without any quibbling

Point 4 should also stop gazumping etc

Debt_Free_Chick

My observations, just to add to the debate

Romani_Ite_Domum wrote: »

1. Remove EAs from the process.

How would potential buyers find properties for sale?

2. Introduce a workable HIP system so that there are no surprises.

Needs to be defined e.g. how old can a survey be? Who would be responsible for any defects occurring after the date of the survey?

3. Soicitors & LAs to join the modern world and do a lot more electronically.

With an alternative system for those who do not use email etc. If there are to be electronic signatures, how will security be enforced, to ensure the signatures are genuine?

(Incidentally, in my experience of three sales/purchase in five years, everything has been done electronically. I simply had to print off the contract, sign it and then post it).

4. Deposits held by solicitors on agrremnet of price, to stop people messing around.

Not sure what you mean by this - isn't this the present system, whereby deposits are paid in time for exchange of contract, by which time the price is agreed?

pickles110564

Debt_Free_Chick wrote: »

Not sure what you mean by this - isn't this the present system, whereby deposits are paid in time for exchange of contract, by which time the price is agreed?

I would hope as soon as chain is confirmed Deposits are handed over straight away

olly300

Romani_Ite_Domum wrote: »

2. Introduce a workable HIP system so that there are no surprises.
.

I remember watching Working Lunch last year and they mentioned an equivalent HIP system in Denmark. They actually have "property reports" http://www.workindenmark.dk/Property_report which are not compulsory. If a house doesn't have a property report but is sold with defects then buyer can hold the seller responsible for 20 years! So buying a property report is a cheaper option for a seller as any defects that come up after purchase the seller is not responsible for.

Debt_Free_Chick

pickles110564 wrote: »

I would hope as soon as chain is confirmed Deposits are handed over straight away

I can't disagree with that But I guess the only potential problem is if the chain breaks down at some point. One or more parties will probably want their deposit returned and all the others will have their deposits retained for longer, whilst the chain is rebuilt.

Personally, I can't get too het up about a deposit being with my solicitor for any length of time. Yes, I am potentially losing interest on it, but for me it's worth it for "peace of mind" and to avoid any last minute hiccoughs!!

pickles110564

I think you would have very few cases of broken chains after people had handed over their hard earned cash on a non returnable deposit

olly300

Running_Horse wrote: »

2. Next, too many sales seem to fall through due to change of mind, or using survey as an excuse to withdraw or drop price. So bids would be binding with independent surveys available in advance, like HIPs but perhaps to be paid for after the sale goes through.

Some of the excuses I've heard for why a sale has fallen through for people are amazing, and this is why lots of chains are held up as people have to find new buyers.

I know in Scotland once an offer is accepted it is legally binding. Therefore if deposits where not handed over but the offer was made a legally binding contract as per the Scottish system then this would have the same affect. After all who would want to lose their savings for pulling out because of reasons like the flat upstairs is now for sale and I think I prefer that.

Debt_Free_Chick

pickles110564 wrote: »

I think you would have very few cases of broken chains after people had handed over their hard earned cash on a non returnable deposit

Ah - I understand now

Was being a bit thick :wall: