New product aims to help homebuyers prove their commi…
Proptech firm Gazeal is working on buyer-focused product that can be used to show a seller they are serious about a purchase.
The product, called Preferred Buyer and built following requests from partner agents, would provide a guarantee from a potential buyer that they would pay for one of Gazeal’s reservation agreements should their offer be accepted.
The buyer will be able to upload and complete anti-money laundering requests and other personal details, provide their decision in principle from their mortgage lender, any proof of funds needed and anything else that is required to strengthen their position.
Bryan Mansell, chief executive of Gazeal, told Estate Agent Today: “A potential buyer can then offer a guarantee that they would pay a reservation fee to secure the purchase.
“It means the buyer can be identified as committed from day one.
“The seller at the moment is largely making decisions based on the highest price which increases the risk of downvaluation, sales collapsing or buyer remorse.
“We want to give a seller the chance to decide on the best buyer, not just how much money they are offering.”
Gazeal’s reservation agreements let both parties commit to paying a fee for pulling out once an offer is agreed.
Both parties are committed to paying a minimum of £2,000 if either breaks the contract.
This is pursued by Gazeal and paid to the other side if a transaction collapses.
It comes after Mansell recently called for more buyer transparency amid new upfront information requirements for the agency sector.
Agency sales listings will be required to show tenure and council tax information from the end of this month and there are plans to eventually make it compulsory to show other important documents such as restrictive covenants.
Mansell suggests that buyers should also be compelled to provide similar levels of upfront information to sellers.
He said: “We’ve seen a lot of focus on sellers providing info, and understandably so, because this is vitally important.
“But we also feel that buyers should be obliged to do the same so it really is a two-way street.
“When it comes to upfront information, the more the better, and it needs to be from both sides to ensure the full picture is there for everyone involved before a transaction progresses any further.”