Nothing compares to the excitement of finally finding your dream home. When your offer is accepted and the buying process begins, it feels like nothing can stand in your way.
However, the possibility of a house sale falling through is a harsh reality for thousands of prospective homebuyers. Property chains can break at any time during the process, with over 300,000 purchases falling through across the UK in 2020.
The impact can be heart-breaking, but there are measures you can take to protect yourself in this situation.
Why do house sales fall through?
There are plenty of reasons that can cause house sales to fall through. Some of them you may never expect to come across, but they are increasingly common. These include but are not limited to:
- Gazumping: This is where a seller accepts a higher offer from another buyer, despite already agreeing with another. It is a difficult situation to be in, as the original buyer may try to counter-offer the seller, but the decision ultimately lies with them.
- Property surveys: Surveys are designed to flag any problems or potential issues with a property before the buyer completes their purchase. The results of the survey can dissuade the prospective buyer, causing the sale to fall through.
- Finances: While many buyers obtain a mortgage agreement in principle, it does not always mean the loan will come to fruition. A mortgage lender can withdraw their offer for several reasons, including a mistake in the application or a change in the buyer’s circumstances.
What can you do to protect yourself?
Although the above may sound intimidating, there are steps you can take to improve your position.
These measures can help keep your purchase on track, ultimately by doing your parts quickly and choosing the right representation.
Be proactive instead of reactive, by selecting your conveyancer and obtaining your mortgage in principle (sometimes known as a Decision in Principle) early.
Setting off on the right foot is key to get your purchase on the right track. Building a positive relationship with your seller can also provide a bit of protection.
Being on good terms will help them be more accepting of setbacks, providing they are kept in the loop.
Finally, insurance such as Home Buyer’s Protection Insurance may not appeal as it is an additional expense. However, it protects your expenses if the seller causes the sale to fall through.
Are you concerned about what happens if a sale falls through?
If you are looking to embark on your next property venture, it is perfectly understandable to have concerns.
The housing market is unpredictable, and setbacks often crop up. However, giving yourself a solid foundation and having good communication within your chain can give you confidence in your position.
Having relevant insurance in place can also give you peace of mind.
How can Home Legal Direct help?
Home Legal Direct is an online conveyancing and property portal. Our system connects you to an expert conveyancing firm quickly and efficiently, to start your sale or purchase get off to the best start.
If you are looking to start your journey, begin by getting your free online conveyancing quote in seconds. Simply click here to go to our online estimator tool and find out how much your next property venture will cost you!
Peter Joseph is CEO of Home Legal Direct
