Why do properties fall through? And what does that even mean? ❌
Buying or selling a home is a lengthy process with a number of different people and professionals involved. This means there are lots of things that can go wrong and cause a sale to fall through 🏡
When a property "falls through," it means that the sale or purchase of a property fails to complete after an offer has been accepted. This can happen at any stage before the transaction is legally finalised. It's common in property chains, where multiple transactions depend on each other.
But why do house sales fall through exactly? Here are the most common reasons 👇🏼
Here are the main reasons:
💰 Buyer’s Financing Issues
👉🏼The buyer can't secure a mortgage, or their mortgage offer is withdrawn.
👉🏼Unexpected financial problems, like a drop in income, arise.
📝 Survey or Valuation Problems
👉🏼 The property survey reveals serious issues (e.g., structural damage).
👉🏼 The lender values the property lower than the agreed price, making financing difficult.
⛓ Chain Breakdown
👉🏼 If someone else in the chain (buyer or seller) pulls out, it can disrupt the whole process.
⚖️ Gazumping or Gazundering
👉🏼 Gazumping: Another buyer offers more, and the seller accepts it.
👉🏼 Gazundering: A buyer lowers their offer at the last minute, and the seller refuses.
👩🏼💻 Legal or Title Issues
👉🏼 Problems with the property's legal title, such as disputes or unclear ownership.
👉🏼 Delays with conveyancing paperwork.
Change of Heart
👉🏼 Either the buyer or seller changes their mind for personal reasons.
👉🏼 Fear of the deal not being favourable after further consideration.
Delays in the Process
👉🏼 Prolonged timelines can lead to frustration, causing parties to back out.
📉 Market Fluctuations
👉🏼 If property prices suddenly fall, buyers might rethink their offer.
The reasons are often influenced by the conditions of the housing market and wider economy at the time. A survey of fall through rates by Quick Move Now has found 50% of failed sales in 2022 were due to the buyer changing their mind or after an unfavourable survey. While another 30% of failed sales was due to difficulty getting a mortgage. With the current cost of living crisis alongside record high house prices, you can see why in buyers might reflect and reconsider part way through the process.
How do we stop this from happening?
Now sometimes this just can't be stopped as some of the above aren't avoidable!
But some are, here are some things you can do...
👉🏼 Ensure financial arrangements are solid before making an offer.
👉🏼 Choose a reputable solicitor or conveyancer.
👉🏼 Get a thorough survey done early.
👉🏼 Communicate clearly and regularly with all parties.
👉🏼 Be flexible and proactive in addressing issues that arise.
👉🏼 Understanding why transactions fall through helps manage expectations and make the process smoother!
👉🏼 Buying a house SHOULD take about three to four months, but you could find several months pass between an offer being accepted and keys changing hands. The longer it takes to exchange contracts, the more opportunity there is for things to go wrong. People can change their mind or find a better offer.
If you want anymore advise on why houses fall through and tips to try avoid it, drop us a message on WhatsApp 📲
