It’s one of the most stressful things we will ever do but it’s got to be done – and that’s buying or selling a property.
A house sale can fall through for any number of reasons, with five pitfalls in particular cropping up time and time again.
Such negotiations are often a complicated business, relying on a number of puzzle pieces all falling into place.
But if the agreement hits one or more unexpected snags along the way, it can cause a complete collapse of the deal and bring you back to square one.
While statistics for house sales falling through vary from area to area, some estimates claim as many as one in three transactions crashed and burned in the UK in 2021.
This can cause major headaches for other links in the chain, and can be stressful for home-movers who are dependent on a smooth sale.
Terry Fisher, a property expert at home-buying service We Buy Any Home , said: “Some of the most common reasons why a house purchase or sale falls through are entirely avoidable so it’s good to be prepared for the unexpected".
Terry says these can include the survey unearthing an issue you didn’t know was there, problems with the mortgage paperwork or another buyer coming in and gazumping your purchase.
He added: “It’s important to have the right processes and help in place to protect yourself from unexpected snags and maximise your chances of a smooth transaction.”
Top five reasons why house sales fall through - and how to avoid them
Buyer/seller changes their mind
Sometimes you can do everything you’re supposed to do, you can have everything in place that you need to have and yet it isn’t enough.
Agreeing a sale does not yet mean the deal is complete and the buyer or seller can still change their mind until contracts are exchanged.
This can happen for a range of reasons, such as a change in circumstances or perhaps a link in their own chain has collapsed and they no longer wish to move home.
While there is not a lot you can do to avoid this, you can at least minimise the chances by maintaining an open and honest dialogue so that the other party doesn’t receive an unwanted surprise that prompts them to withdraw.
It can also help to make sure everything is in place for the quickest possible transaction so the other party has less time to dwell on things.
Valuation issues
It’s often said your home is only worth what someone else is prepared to pay, and that official valuations act more as a guide than a concrete guarantee.
A house sale can run into problems if the property valuer doesn’t quite agree with the price that the buyer or seller has in mind.
While there is no harm in trying to get the best possible deal for yourself, being unrealistic on the price can come back to haunt you.
To avoid valuation issues causing your deal to collapse, be realistic.
If you’re a seller, check out what other similar properties in your area are going for, while buyers should do their own research on the area to make sure they aren’t being squeezed.
Mortgage offer isn’t granted
One of the most common snags that can pop up in a property deal is when the bank declines to provide the buyer with the appropriate mortgage.
Sometimes people make offers without having any assurances that they will be able to come up with the funds, while others will only have a mortgage in principle behind them.
Then when it comes to the crunch, the bank can decide not to lend the money for a variety of reasons, such as a bad credit rating or insufficient earning power.
To avoid such an issue, make sure you are confident of passing the bank’s affordability checks, be fully aware of any problems with the property and ensure your credit rating is up to scratch.
Problems with the survey
Few properties are completely perfect, so it’s common for a house survey to throw up some unexpected issues, whether big or small.
These can include roof damage, internal doors jamming, blocked or broken gutters or damp.
Bigger problems can include damage to structural timber, subsidence and even asbestos, which can become major hurdles to clear during the process.
It’s important to be ready for anything the survey can bring, and understand that this can make a buyer feel like they need to renegotiate the deal or expect the seller to pay for the repairs.
Last minute gazumping
Perhaps the most infuriating of all potential problems with a property deal is when the buyer is gazumped at the last minute by another buyer who has submitted a higher offer.
Ultimately, the seller is often looking to receive as much money as possible for their property so the highest bidder is usually the winner.
While there is little you can do if someone else wants to blow you out of the water with a higher offer, it can help to make sure the seller sees you as an attractive and reliable option.
This can include being prepared to pay in cash, having all of the necessary paperwork in order for a quick transaction and ensuring the seller knows you won’t let them down further along the line.
Want to get the latest health news direct to your inbox? Sign up for the Mirror Health newsletter HERE
