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★Common Reasons a House Sale can Fall Through in 2021
Posted on: 16th June 2021 | Filled under: How to Sell a House
Written by: Mark King
When a house sale falls through, it can be soul-destroying for all parties involved. Sadly, statistics show that for one reason or another, one out of three house sales does not reach completion, leaving many disappointed and out of pocket.
As this is so incredibly common, we thought it would be helpful to write a guide informing you of the common reasons that house sales tend to fall through, so you know what to look out for, but also to assess if putting your property on the “open market” is the best option available.
As a professional property cash buyer of over 20 years, I have seen this happen far too often, which is why I like to offer a service that will not only give you comfort and certainty but will allow you to sell your house quickly, with no risk of the deal collapsing and for a fair price.
Before I explain what a business like mine can offer to you, let’s explore the most common reasons that a house sale can fall through!
When the Vendor goes for the Highest Offer, but not with the most “Proceedable” Buyer
When it comes to choosing a buyer for your property, it is very important that you or your Estate Agent gather all of the essential & relevant information, so you can consider each offer as thoroughly as possible. We suggest finding out all the information detailed below, as it will ensure that you are equipped with the details you need to make the best decision.
Are They First Time Buyers?
This may not seem important but, it is because it will mean they are not in a chain, this is a huge advantage. After all, it means you are not relying on things that are beyond their control, like their property not selling or their buyer pulling out of the sale. It also means that they are likely to be able to proceed as quickly as possible as they have nothing going on behind the scenes to wait for, like needing the equity from their home to pay the deposit for the mortgage on the next property.
When Are They Able to Complete?
Again this lets you know how likely it is for something to go wrong; remember, more time waiting means more time and opportunity for issues to crop up.
Are They A Cash Buyer?
Selling to a professional Property Cash Buyer like myself is always the quickest and least painful option because there is much more flexibility and certainty.
Mortgage Applications Being Declined
Many people have found that their financial circumstances can change, making mortgages so much harder to secure.
This can be due to a decrease in hours, having to go on furlough, or they may no longer have the income needed to secure the loan or deposit.
Buyers and sellers need to be aware that having a “Mortgage or Agreement in Principle” does not always result in the applicant being granted the mortgage; it is just a provisional acceptance to say that they are willing to consider you based on limited information the applicant has provided.
Once an offer on a property has been accepted, the buyer puts in a “Full Application” which involves a full credit check, employment & benefit checks, and full income and expenditure assessment. The whole process can take months, with no guarantee of acceptance.
Buyers Remorse
This is something that we see a lot of in the property field, it is when a buyer gets “Cold Feet” perhaps they got a little carried away with the competitive element and made an offer that was unrealistic or beyond their affordability. Perhaps they have gone away and considered things more carefully and have come to the conclusion that they may be making a huge financial mistake or that the property or area is just not right for them.
There are all sorts of reasons a buyer may experience regret but mainly it tends to be financial, I don’t know about you but I sometimes wince at the cost of things these days and property purchasing is a whole different animal, you are legally bound to the agreement until the house is paid off, failing to meet the mortgage payments will result in the property being repossessed which will have devastating effects on your ability to get credit or a mortgage in the future.
It can have lasting implications on employment opportunities too, as a lot of companies now perform credit checks that an applicant must pass to secure the job! Any buyer should pull out if they think they have made an error in judgment but as a result, it is a common reason that a lot of house sales fall through.
Poor Communication
In any situation, poor communication is never a good sign, and when it comes to a house sale, it is one of the most common reasons.
All parties involved in the transaction must be communicating as clearly, and as frequently as possible.
It is also important that Brokers, Vendors, Buyers, Estate Agents, Mortgage Providers and Solicitors communicate with each other and work together to make sure they are all on the same page.
As so many parties are involved, it can be difficult to know what everyone’s position is on the time scale or ensure they are all aware of the progress of the sale.
Making sure everyone’s communication is active will result in them working effectively and efficiently to meet completion. Unfortunately, this is rarely the case, and often a lapse in communication leads to many a house sale falling through.
Survey & Valuation Issues
This is one of the most frustrating reasons of all because it is beyond anyone’s control.
In many cases, we see a buyer make an offer, but then something comes up in the survey or valuation, meaning that the property has been “down valued”. This is where the surveyor and mortgage lender do not agree, based on their findings, that they can lend the amount needed or in some cases even at all for the purchase of the said property.
This is why selling to a cash buyer is such an advantage, there is no risk of another link in the chain breaking or a lender not being able to lend against the property.
Want To Skip The Stress?
It’s clear that there are so many factors that can result in a house sale falling through, if you want to skip the hassle I can make fair, guaranteed cash offers, regardless of the property’s condition, history, or any difficult circumstances involved.
In most cases, I can complete within 7 working days of my offer being accepted, and provide the option of “Early Cash Release” allowing you to access part of the funds before the sale completes.
You will incur no fees or legal costs when selling to me, and you will always get 100% of the agreed amount.
Over the years, I have built up a fantastic archive of independent reviews and testimonials, I would like to invite you to check them out and see what we can do for you.
I pride myself on a personal, sensitive, and fair approach, which is why I am ranked No.1 Property Cash Buyer in South Wales.
We have compiled a video on this topic which can be viewed on my YouTube Channel, do have a watch and subscribe to see more videos like this!
