Below we take a look at why and how often property sales fall through. Helping you to avoid it happening to you!
If you have ever had a property sale fall through – you know how disappointing it can be. Especially if you are using that as a means to move to your next home. The number of house sales that fall through has risen. In 2019 alone, more than a quarter of all house sales collapsed before completion.
The Current Housing Market
The housing market within the UK has long been in a period of uncertainty due to events like Brexit, the changes to landlord taxation, and the current political climate.
Moving into 2020 the issue still remains the same, and it’s most likely going to last for the foreseeable future. In terms of house sales falling through, this period of uncertainty definitely does not improve this issue. With likely buyers and sellers getting cold feet.
Mortgage Problems Can Make A Property Sale Fall Through
Time appears to be a major contributor to sales falling through. 25% of buyers reported having a gap of two to three month between offers. Whether it’s being accepted and completed on the purchase.
The process of being approved for a mortgage has never been straightforward, with this year being no exception. Mortgages fall through all the time for various reasons, but one of the most common reasons are down valuations.
Down Valuations can occur. This is when the mortgage lender values a property at a lower price than what a buyer has agreed to pay. This then creates a shortfall in price. Buyers are then expected to make up this shortfall from somewhere else.
However, there are ways to avoid a down valuation. Make sure you do your market research. See what prices other homes have sold for in the local area. Make sure your offer is based on just that. Sometimes emotions get the better of people and they tend to offer more just to secure a home.
A Break in The Housing Chain
A property chain can potentially be one of the most frustrating situations to find yourself in. More so due to the lack of control you have. A house chain is when a string of transactions are linked together. If one sale collapses it will cause issues for everyone. Chain breaks can occur for a variety of reasons, and usually the same reasons as mentioned in this article.
Estate agents and conveyancers have a job to keep the chain moving. However, chasing them can be key to make sure they are doing their part. Unfortunately, you can only control your part of the chain, so focus on keeping your end moving.
Issues With a Home Survey can Make The Property Sale Fall Through
A home survey, the part every homeowner dreads. A home survey will look into the overall home and can uncover issues from cosmetic to major structural issues. If major issues are found, this may leave the seller open to accepting a lower offer to complete the sale. Or worst-case, the sale falls through.
Sellers can avoid any surprises by making sure that they have a survey completed before putting their home on the market. This will give them an idea of any work that potentially will need to be completed. If any actions are necessary, they can be highlighted at this stage. Buyers can equally take precautions and have an extensive survey completed on their prospective new home. There are many different types of surveys that can be conducted.
Over offers, or Gazumping as it is also known, is where a seller accepts an over above what you have offered from another interested buyer, even after they have agreed to sell to you. This is most common in highly competitive areas where there is a large demand for property.
Unfortunately, unlike most of the issues in this article, you cannot prepare or put preventative measures in place. You may want to approach the seller and offer some more money if your budget allows. However, trying to meet an over offer can put you in financial difficulty in the long run, so only do this if your situation allows.
Conveyancing issues can cause delays when buyers purchase homes and this can sometimes prompt them to look elsewhere. A time delay in this process can sometimes be the difference between a successful sale, or a buyer pulling out. Unfortunately having this completed is part of the legal element to buying a home, and cannot be avoided.
Conveyancers do sometimes get a lot of criticism from sellers and buyers, however, sometimes the process does take longer than expected. In preparation for this, it is ideal to instruct a conveyancer earlier in the buying process in preparation, be that if you are a buyer of a seller.
To Conclude – How Often Property Sales Fall Through:
How often do property sales fall through? Well, as you can see there are many contributing factors to why house, property or land sales can fall through. Preparation is key to making sure you can avoid them.
Equally, there are some factors you cannot prepare for, so it is good to have provisions in place for the worst-case scenario. With more than a quarter of all property sales falling through in 2019, it is also very important you have your legal aspects in line as these tend to take the most time.
If your house sale has fallen through and you need a quick sale, then contact Norwich Home Buyers today to see how we can help.