Nothing compares to the excitement of finally finding your dream home. When your offer is accepted and the buying process begins, it feels like nothing can stand in your way. However, the possibility of a house sale falling through is a harsh reality for thousands of prospective homebuyers. Property chains can break at any time during the process, with over 300,000 purchases falling through across the UK in 2020. The impact can be heart-breaking, but there are measures you can take to protect yourself in this situation. This article discusses tips for how to protect yourself if a sale falls through, to give you the strongest possible position.
Why do house sales fall through?
There are plenty of reasons that can cause house sales to
fall through. Some of them you may never expect to come across, but they are
increasingly common. These include but are not limited to:
- Gazumping: This is where a seller accepts
a higher offer from another buyer, despite already agreeing with another. It is
a difficult situation to be in, as the original buyer may try to counter-offer
the seller, but the decision ultimately lies with them.
- Property surveys: Surveys are designed to
flag any problems or potential issues with a property before the buyer
completes their purchase. The results of the survey can dissuade the
prospective buyer, causing the sale to fall through.
- Finances: While many buyers obtain a
mortgage agreement in principle, it does not always mean the loan will come to
fruition. A mortgage lender can withdraw their offer for several reasons,
including a mistake in the application or a change in the buyer’s circumstances.
Advice for how to protect yourself if a sale falls through
Although the above may sound intimidating, there are steps
you can take to improve your position. These measures can help keep your
purchase on track, ultimately by doing your parts quickly and choosing the
right representation. Be proactive instead of reactive, by selecting your
conveyancer and obtaining your mortgage in principle early. Setting off on the
right foot is key to get your purchase on the right track. Building a positive
relationship with your seller can also provide a bit of protection. Being on
good terms will help them be more accepting of setbacks, providing they are
kept in the loop. Finally, insurance such as Home Buyer’s Protection Insurance
may not appeal as it is an additional expense. However, it protects your
expenses if the seller causes the sale to fall through.
Are you concerned about what happens if a sale falls
If you are looking to embark on your next property venture,
it is perfectly understandable to have concerns. The housing market is
unpredictable, and setbacks often crop up. However, giving yourself a solid
foundation and having good communication within your chain can give you
confidence in your position. Having relevant insurance in place can also give
you peace of mind.
How can Home Legal Direct help?
Home Legal Direct is an online conveyancing and property
portal. Our system connects you to an expert conveyancing firm quickly and efficiently,
to start your sale or purchase get off to the best start. If you are looking to
start your journey, begin by getting your free online conveyancing quote in
seconds. Simply click here to
go to our online estimator tool and find out how much your next property venture
will cost you!