Most homebuyers think they know how much they can afford when it comes to buying a property, but the reality is that many don’t, according to research among agents by Rightmove.
The study has found that many buyers simply do not know what they can borrow before they request viewings, and that can be a significant source of wasted time and delays for source of wasted time and delays for both buyers and agents.
The property portal says it wants to find a solution to this issue, and improve the transaction process, by helping potential buyers to understand their financial position much earlier in their home-moving journey.
Rightmove aims to help agents through buyers being better financially prepared, meaning that time and wasted effort can be saved. It also means there is the potential for better quality referrals to agents’ own mortgage brokers or advisers.
The first stage of his new strategy will see Rightmove launch a major education programme on its platform in 2022, explaining to buyers the importance of being financially prepared much earlier in the process.
The messages will explain why having a mortgage agreement in principle earlier in the process will put buyers in a much more powerful position when they find the property they love, and will show to an agent and their seller that they are a serious and proceedable buyer.
Rightmove will continue to explain to buyers who also have a property to sell why being a power buyer is key in today’s fast-moving market, and that by getting their own property on the market first before looking for somewhere to buy puts them in the best possible position.
Prospective buyers have been able to access an Affordability Calculator, Rate Tables and Decision in Principle journeys via Rightmove for over two years, and during 2022 Rightmove will be experimenting with more integration of these tools on its platform, so that prospective buyers can be better prepared and therefore better qualified for agents.
Rightmove says that it will be working with agents at each stage of the plan to ensure that it helps them and the wider industry to improve the home-moving process.
Rightmove director, Dave Cray, said:“We know that many buyers currently consider their financial position quite late in their home move, and as a result a lot of time and energy can be wasted by both the buyer and the agent. We want to help all involved in the home-moving process by encouraging more buyers to consider their finances sooner, and as a result to gain more confidence about what they can really afford.
“We will inform, educate, and support buyers with relevant and valuable information that we hope will encourage early mortgage consideration, and ultimately lead to more mortgage agreements in principle earlier in the journey.
“As part of this initiative we’ll also be really emphasising to buyers who also have a property to sell the benefits of getting their property on the market early, to try and help alleviate the shortage of properties we’re currently seeing.”
Full Story: https://propertyindustryeye.com/rightmove-to-help-buyers-establish-how-much-they-can-really-afford/