The latest research by the new-build sales optimisation platform, Unlatch, has revealed how the nation’s housebuilders are utilising technology to dramatically reduce the time it takes to exchange on a new-build transaction – cutting the process down to an average of 25 days per sale from 45-50.
Previous research by Unlatch shows that home buyer demand for new homes has continued to climb in 2022. However, finding a buyer is the easy part, it’s the process of moving from agreeing a sale to exchange that can prove challenging.
Notoriously archaic and protracted, the legal process of purchasing a new-build has traditionally been the reason that transaction timelines can drag on for a substantial length of time.
As a result, it’s estimated that the average time between a sale being agreed and exchanging on a new home can be as long as 45-50 days.
Lee Martin, Head of UK for Unlatch says: “Advancements in technology have led to a huge level of digital disruption within the property industry. However, it’s fair to say that the legal process associated with buying a property hasn’t evolved to the same extent.
“This is largely down to the old mantra of ‘if it’s not broke, don’t fix it’, preventing the implementation of any meaningful change. The entire transaction relies on the proper execution of these legalities and so it’s understandable that those responsible for facilitating this process are hesitant to shake things up.
“Of course, as digital natives rise through the ranks across all areas of the property industry, the propensity to embrace and adapt to technological change is becoming more prominent which can only be a positive thing for the future of the new-build home buying and selling process.”
“In today’s market, homebuyers already expect more, and the integration of modern-day technology is helping to substantially shorten the time it takes to get the sale of a new-build property over the line.
“Over 400 developers and brokers across six countries are already benefiting by utilising this technology via the Unlatch platform, reducing the time it takes to reach exchange to an average of just 25 days.
“One of the biggest changes has been to the way legal documents are handled. Electronic signatures now enable reservation, reservation fee (Stripe) and anti-money laundering documents to be signed and countersigned in as little as two minutes. This removes the painstaking admin of handwriting, scanning, emailing and printing that can consume a vast amount of time and resources.
“The generation and auto-population of reservation forms, CMLs, sales memos and legal packs is also helping to considerably reduce the paperwork pile and by coding these legal packs, they are ready to distribute within seconds of the reservation being signed.
“However, the biggest step forward has been the ability to seamlessly integrate these advancements within a centralised, purpose built new homes platform, avoiding the inevitable teething problems that arise when trying to amalgamate a range of products from a plethora of suppliers.”
Leave a Comment