Why do most home-selling transactions fall through?
- Buyers changing their mind
- Higher offers before the exchange of contracts
- Buyers unable to secure a mortgage
- Slow conveyancing
- Survey revealing issues
- Estate Agent issues
- A break in the chain.
A record 30% of home deals fall through before closing, making this perhaps one of the most nerve-wracking aspects of selling or buying a home. Medway House Buyers are looking into the main reasons why home transactions fail and how to effectively prevent these problems.
Know more about Medway House Buyers and get an instant cash offer for your home!
What are the main reasons why sales don’t go through?
A home sale may fail for a number of reasons, but the most frequent ones are as follows:
- a buyer switching their mind and walking away from the deal
- a seller taking a higher offer after a verbal agreement to sell has been made but before formal contracts have been exchanged.
- A buyer unsuccessful in obtaining a mortgage for the property
- Potential purchasers are turned off by slow conveyancing if they don’t want to wait.
- surveys find unanticipated problems that require a lot of labor to fix
- Issues with real estate agents can include not following up on paperwork or doing poor negotiations, which can cause sales to fall through.
- a break in the chain since they are unable to sell the house they are relying on to buy another.
How can I prevent my sale from failing?
There are things you can take to help protect your agreement and lessen the danger, even if there is nothing you can do to ensure your sale won’t fall through.
1. Surveys
It is a prudent step for almost all buyers to request a survey of your home before they make an offer. Surveys might reveal problems that aren’t readily apparent during routine inspections of a property which can be disastrous for a homeowner. By having your home assessed beforehand, you can avoid being taken off guard during the sale and learn if there are any potential issues to be aware of. You should be honest with your buyer and adjust the price if you are aware that there is subsidence. Being truthful about any problems and, if feasible, resolving them before the sale, will significantly improve your sale.
2. Quick and easy
You can’t modify the length of the home buying and selling process overnight, but there are steps you can do to keep things moving forward and avoid delays. Using a trustworthy estate agent and a lawyer will assist avoid any paperwork snags or negotiation issues, lowering the possibility of your buyer backing out. Being proactive can help keep your sale on track and prevent the delays that frequently turn purchasers away from a house. This includes being in touch with your estate agent and solicitor and actively encouraging updates and time frames.
3. Chain breaks
There’s nothing you can do to instantly fix a chain, and most of the time it isn’t just you that is affected by this chain break. However, if you’re willing to be flexible with the time you could still save the break. If your buyer has dropped out because they have lost their buyer, you can agree with them on a certain time scale for them to find a replacement before you start advertising your house again for sale. If your seller has lost their buyer, you can do the same; but you do run the risk of waiting for nothing.
Medway House buyers can help you sell your house fast – Learn how!
The fact that there are currently no laws in England and Wales prohibiting backing out of an agreed sale before the contracts have been exchanged—which can take anywhere from one to three months after the sale has been agreed—should also be noted. This is a frustrating and expensive situation to deal with. The government is making an effort to stop gazumpers or purchasers who make an offer that is marginally greater than the amount you have agreed to in order to steal the sale.
The possibility of the sale falling through is also a part of the home-selling process. Fortunately, Medway House Buyers can help you with a free offer on your property and see how we can help you secure your next house through the sale of this one if you’re seeking a rapid sale that doesn’t involve this danger.
