A survey of homebuyers has revealed that nearly a third saw their purchase collapse after their offer was accepted. When Which? surveyed 2,000 recent homebuyers in 2016, 28% said they’d had an offer accepted on a property only for the purchase to fall through.
In this blog we discuss what can you do to avoid a sale collapse.
In 27% of cases, this was down to the seller having a change of heart about selling their home.
The research also found property chains to be a problem, with one in five failed deals (21%) being caused by buyers unable to complete sales on their own homes.
Other reasons included buyers finding somewhere else to buy (21%) and people being ‘gazumped’ – losing the property due to the vendor accepting a higher offer from another buyer (21%).
Look for a seller who isn’t in a chain
If you’re buying and can afford to be picky, look for properties where the upward chain is short or, even better, non-existent – for example, if the previous owner has died and the property is empty, or the vendors owned it as a second home and don’t need to find somewhere else to live.
Choose a buyer who isn’t in a chain themselves
If you’re selling and have multiple offers on the table, choose a buyer who isn’t in a chain themselves, such as a first-time buyer.
Consider temporary rental accommodation
It’s worth considering selling your property and moving into short-term rented accommodation or with family or friends. You’ll then be chain-free, which you can use to your advantage when making an offer as you’ll be much more appealing to the vendor. Bear in mind though that it is a risky strategy as there’s no way of knowing how quickly you’ll find somewhere to buy.
Looking for rental accommodation at the moment? Have a look through our rental portfolio.
New-build homes can be quicker to buy
New-build homes have no upward chains for obvious reasons – and if you’ve got a property to sell, the developer may offer part-exchange, meaning they’ll buy your old property to help speed things up. However, you may not always get the best price for your own property this way and naturally, a new-build will likely come at a premium over a pre-owned property.
Agree deadlines with vendors
If you’re in a hurry, try and get the vendor of the property you’re buying to agree to a date by which they are prepared to move out, whether they’ve bought somewhere themselves or not. Vendors will sometimes agree to move into rented accommodation to avoid risking the deal falling through.
As a result of the hard work, training and experience of our Love Your Postcode staff, we believe we significantly enhance our clients’ success rates.
We have a dedicated team for sales progression, whose role it is to reduce the time a sale takes to progress from ‘under offer’, to a successful exchange of contracts, and keep both the seller and buyer up to date through the whole process.