For anyone, moving house is a daunting yet exciting experience. However, one thing everyone dreads is the potential of their house sale falling through. Not only is it an inconvenience, but the emotional and financial consequences can be devastating. The failure of a transaction can be detrimental to the circumstances of all parties, as it can leave them uncertain of their future steps. Here at We Buy Any House, we have provided answers to your top questions as to why house sales fall through, how to recover from them, and future steps to take to ensure that you can try your best to avoid a reoccurrence.
Why Do House Sales Fall Through?
Unfortunately, there are plenty of reasons as to why a house sale might fall through. These common factors include:
Mortgage Valuation Issues:
If your mortgage application is being assessed, then the company will conduct an independent valuation of the property that is up for sale. If it is determined that the house is not worth the same amount as the agreed selling price, then the mortgage company will only lend based on the property’s valuation.
Mortgage Offer Expiring:
A mortgage is essentially a signal to the seller, as it indicates that they are ready to place finances upon a specific property. However, this only lasts six months. Although a mortgage offer can be extended if there are unforeseen complications that have caused a delay, the mortgage company will only make an offer once the property has been assessed and all checks have been cleared. For those looking to buy a property, a mortgage should only be secured when you’re seriously considering buying a property. Once you have decided that you are ready to buy, then it’s important that you don’t make any financial changes, such as starting a new job- this will help keep the buying process as smooth as possible.
Problems Identified in a Survey:
When you’re looking to buy a property, surveys are a routine part. Although there are various types of surveys, most surveys mainly focus on identifying structural problems alongside any issues that could be impactful once the property has been purchased. It’s important that both parties take the time to get feedback from the surveys, as it’s not only a good selling point, but is also a direct effect of whether your house will sell.
Gazumping is essentially when a seller agrees to an offer on their house, but at the last minute accepts a higher offer given by another buyer. Understandably, this is extremely frustrating and annoying, however, there isn’t much that can be done to prevent this.
Buyers and Sellers Pulling Out of the House Sale:
If the seller of the property decides to pull out before contracts have been exchanged, then there are a couple of things you can do to try and pull back the sale. Firstly, contacting the seller is worthwhile finding out why they have pulled out- they may be able to offer you an alternative. Secondly, speak to your estate agent. With the help of a solicitor and an estate agent, they will be able to give you advice as to what the next best step to take is.
If you are selling your property and the buyer has pulled out, then you should follow a similar protocol. You can either find out why the buyer has pulled out and try to rectify this, or alternatively, find a new buyer.
How to Prevent a Sale Falling Through:
Communication is Key:
Throughout all aspects of life, communication is key- but especially when it comes to buying and selling a property. Most fall through can be prevented through talking about issues and concerns.
Choosing a Reputable Estate Agent:
It’s important that you choose an estate agent that has a reputation for being dedicated to knowledgeable solicitors. This way, any unforeseen circumstances can be dealt with professionally beforehand.
This article was written by a quick house sale company We Buy Any House. If you’re wondering “how can I sell my house fast?”, head to the We Buy Any House reviews page for more information relating to all property related enquiries.