The trend over the last couple of years, particularly in the latter half of 2012 and the start of 2013, was for people to take more caution, agreeing mortgages in principle before making offers, and that is the main reason why we saw a reduction in the fall through rate.
The mood in the property market has been buoyant lately and this is reflected in the sharp rise in fall throughs throughs we have seen since March 2013".
Richard Hill, Founder of Dream House Buyer, is not surprised at this news:
"There are many reasons why a property sale might fall through, but these tend to become more numerous in a rising market.
Reasons include:
- Solicitiors not communicating effectively.
- Problems with missing paperwork or important documents.
- Problems with instructing a valuation.
- Problem property or defects discovered which might make the property unmortgageable.
- The property is down-valued.
- The mortgage surveyor could request a retention if works to the property are required.
- The vendor or buyer get cold feet or are not pro-active in supplying documents or responding at important milestones in the sales progression process.
- The buyer's mortgage offer falls through.
- The property sale is part of a long chain that becomes stuck.
- The buyer's circumstances change, such as pregnancy or redundancy, and the buyer changes their mind.
Until "exchange of contracts" a property sale completion is not guaranteed and often hangs in the balance right up to this point".
In a rising market, people tend to make offers that they cannot honour. It may be that their own property is not sold, or they do not have finance in place and then later find that they cannot get mortgage finance.
When a sale falls through, this can leave the vendor who has taken their property off the market, high and dry with the task of starting from scratch all over again to market the property and get viewings.
One way to avoid this hassle and stress is to consider selling your property to a cash buyer.
Dream House Buyer is a family owned property company that considers all types of property, and we buy property with sitting tenants too. We will make an instant cash offer for any property in the UK, regardless of the size, location, condition or value.
