Research by home buying company Quick Move Now has found that almost half of all house sales fell through in the last quarter of 2018.
A total of 49.8 percent of sales didn’t complete, with the overall annual rate standing at 30.6 percent.
Most common reasons for a sale falling through
Buyer changed their mind
This was by far the highest cause of a sale falling through in 2018, probably exacerbated by continuing political and financial uncertainty.
Financing
After having their offer accepted, a buyer may struggle to arrange a mortgage for the amount they were hoping to borrow.
Survey results
Where a survey reveals problems with the property that need expensive remedies, it may deter the buyer from continuing. Alternatively, they may ask for a reduction in price that the seller is not willing to concede.
Gazumping and gazundering
Gazumping is when the seller receives a better offer for the property prior to exchange of contracts and decides to go with the new buyer. Less common, but still a problem is gazundering, when the buyer lowers their offer at the last minute, hoping to force the seller into accepting a lesser amount.
Chain collapse
If someone in the chain loses their buyer or seller or otherwise can’t proceed, for example if they are unable to arrange a mortgage, the whole chain is likely to collapse, unless all parties are prepared to wait.
The sale is going too slowly
It can be frustrating when a sale or purchase proceeds very slowly, with seemingly little progress from week to week. When the buyer feels that nothing is happening, they may start to look around at other properties, and if they find sellers that are able to proceed more quickly, they may switch to that property.
How to minimise the risk of sale collapsing
It is important that your buyers feel that you are communicating with them and that their questions are answered quickly and fully. Make sure that your solicitor has all the information they need and that they respond promptly to all contact from the other side.
Choose an independent lawyer, rather than one recommended by the estate agent, whose first loyalty may be to the agent from whom they receive work, rather than to you, the client.
You may need to negotiate, for example if the buyers’ survey has revealed that work is needed to the property. Be pragmatic and try and reach a fair solution. If the sale falls through, the chances are that the next buyers you find will also have the same survey results.
If you would like to speak to one of our expert property lawyers, ring us on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
