What to do if your sale falls through?
An abortive sale can be one of the most demoralising and frustrating events during any move. Find out here what your best options might be?
Any delay during your move can cause high levels of stress from complications with chains to delays with searches or mortgage complications, there are so many pieces within the moving puzzle that need to be aligned for your sale to complete. Many Estate Agents consider their job finished at the point of finding a suitable buyer and agreeing a sale. However, it is important for sales progress to be carefully monitored and if issues are likely to arise they can be identified and rectified prior to becoming a problem.
In some cases these issues cannot be resolved, but were you aware that somewhere in the region of 1 in 3 transactions in the UK fall through! When faced with this situation it is critical that you remain calm and make informed decisions.
Most common issues for an abortive sale:
Financial issues and down valuations: When an applicants submit an offer for your home, they should be financially qualified by your agent. If a buyer is proceeding with cash funds which are available they will be able to provide evidence of the funds (this could be in the form of a bank statement or evidence of easily accessible investments).
If an applicant is proceeding with cash funds and equity from an existing dwelling it is essential that their sale price is in excess of the purchase price and that they have funds available to cover the agreed purchase price. Their chain will also have to be verified to ensure that the applicant is proceedable.
Should your buyer require a mortgage before committing to purchase they should be able to provide a mortgage agreement or decision in principal along with proof of deposit. On occasion homes can be down valued by surveyors leading to a shortfall in purchase funds.
Chains breaking: Often depending on the status of your buyer their funds or deposit may be coming from equity in their existing home issues arising with a chain relating to their/your sale can mean that that they are no longer able to proceed with purchase.
Legal issues and complications: During the moving process you will appoint a legal representative to act on your behalf. They will assess the property title and registration. Searches will be undertaken and any relevant enquiries/questions will be raised and answered. On occasion issues crop up that do cause problems which result in sales falling through.
Want to understand the legal side of the moving process a little better? CLICK HERE
So What are my options?
The best advice as to how to move forward will vary depending on the specific situation. Factors which will impact on your decision could include, other properties involved in the chain and their saleability, whether your own buyer is still committed to purchase or sometimes most importantly whether you are still able to secure the home you want to buy.
In some cases as a gesture of commitment and good will sellers and buyers agree to leave their homes off the market for the chain to be re-established or a new buyer to be found. This can often hinge on all parties within an established chain to follow the same action as no one ever wants to lose out on a property they have set their heart on and have invested in. Quite often a "grace period" is granted and is offered with the understanding that a sale at the bottom of the incomplete chain needs to be achieved within a specific time frame.
At times sellers decide to immediately re-market their homes this can depend on the current levels of demand and a level of confidence that a new purchaser will be found in a short space of time.
We understand that for some homeowners the pressure comes on very quickly after an abortive sale and if you are looking to boost the exposure of your property by instructing an additional proactive Estate Agent then Church & Hawes would be delighted to assist.
If you would like us to provide you with an abortive sale assessment CONTACT US now for advice.
CLICK HERE to find out how we could enhance your chances of finding a buyer.