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29% of UK House Sales Fall Through – How to Minimise the Risk

29% of UK House Sales Fall Through – How to Minimise the Risk

7th January 2016

According to industry website PropertyReporter.co.uk, 29% of UK house sales fell through in 2015. This may sound high to some but this actually been a fairly consistent figure through recent years.

Business Manager at Quick Move Now, Danny Luke, explained: “2015 was an interesting year for the UK property market with tougher lending criteria introduced – 9% of sales that fell through did so as a result of not being able to secure a mortgage or not being able to borrow as much as anticipated but the overall fall through rate did not increase.”

In fact, the three most common reasons for house sales falling through were completely unrelated to borrowing, they were as follows:

1. Buyer changed their mind (27.2%)
2. Unforeseen problems identified at survey stage / failed renegotiation following a survey (27.2%)
3. Chain collapse (22.7%)

On the positive side, a shortage of properties coming onto the market has encouraged prospective buyers to move more quickly and to offer closer to, or even above, the asking price in order to secure the property they want. The property market, in particular in the South East, is fast moving and sellers are keen to purchase in main towns such as Maidstone as well as commuter areas such as Sevenoaks where prices have risen but demand is still high.

Sarah Raggett, Partner of Sibley Pares, states that “we are aware that this can be the case, although Sibley Pares Residential has had a successful 2015 with a 100% success in conversion to sales. We believe that with expertise in valuation and marketing and careful progression management, many of these issues can be avoided. It pays to remember when choosing an agent, it’s not how many properties they have on the market as an indicator of their success or desirability as an agent but how many have they successfully sold and on first attempt."

Diane Broomham, our Residential Manager offers this advice for minimising the risk of your sale falling through: “while there is no way to guarantee that your sale doesn’t fall through, these pointers should maximise the chances of your sale completing first time.”

1. Use a reputable agent with excellent knowledge of the area and a good database of potential buyers

2. Be realistic about the price you want to achieve and how quickly you need to sell as well as whether you would be prepared to accept an offer from someone involved in a long chain

3. Be honest with your agent and your buyer about any issues that would otherwise be identified at survey so the agreed sale price doesn’t need to be renegotiated at a later stage

4. At Sibley Pares, we would always ask to see a mortgage in principle before accepting an offer and removing your property from the market – this ensures your buyer is likely to be able to secure the necessary funds for purchase

5. Choose a recommended solicitor who can ensure your sale is completed as efficiently as possible

If you have a property you are thinking of selling, contact the Sibley Pares team for a free market appraisal. We can give you a realistic idea of what your property is worth along with valuable advice on how to present your home to the market for the best price. Call 01622 692206 or email enquiries@sibleypares.co.uk for more information.