Negotiations on the property market are heating up as more properties for sale become available, the latest data from home buyer Quick Move Now show.
With buyers as well as sellers having more options, home sale deals that are not progressing quickly enough could fall through.
Danny Luke, business manager at Quick Move Now, comments
“Buyers are less likely to move forward with a purchase if the survey brings up surprises, and sellers are less willing to drop the price in a renegotiation, confident that they’ll be able to find another buyer fairly easily.
“We carry out a substantial amount of research into the reasoning behind the fall through rate. Across the last six months, 22% of home sales that fell through did so as a result of the buyer changing their mind, 16% fell through as a result of the buyer being refused lending, 13% fell through due to slow sale progress and a further 13 % fell through due to a higher offer coming in. 8.7% of the house sales that failed to reach completion did so after the buyer attempted to renegotiate, 6 % fell foul to issues that were highlighted during a survey, 5.8% failed to successfully complete due to a change in the buyer’s circumstances, and a further 5.8% fell through due to a chain breakdown. 4% failed to complete because the buyer decided to buy a different property, 3% broke down due to lease issues and the remaining 3% failed to complete as a result of legal complications.”
Quick Move Now’s research found that more than one in three house sales in the second quarter of 2015 failed to reach completion.
The data indicates a house sale fall through rate of 36.34 per cent for second quarter of 2015,compared to 22.76 per cent in the first three months of the year.
