In the world of real estate markets, many of us have heard the term “property chain” in the past. What does this phrase mean, why is it an undesirable situation and what steps can you take to avoid such a scenario? These are all very important questions to answer. Let’s take a closer look.
Property Chains Defined
As the name may already hint, a property chain is simply a group of buyers and sellers that are linked together due to their mutual real estate transactions. Most reputable sources note that this chain begins with an entity who only seeks to buy and it will end with a vendor whose primary concern is selling. The issue tends to be that there are other stakeholders within this “chain”. We can think of this rather convoluted relationship much in the same way as a physical chain; one “break” in any link can cause the entire transaction process to grind to a halt.
The Issue with a Property Chain
So, we already have scratched the surface in terms of the main drawback of a property chain. It is still important to note how the breaks in such a chain can occur. As it is often a fact that 12 people or more can ultimately be involved in the buying and selling process, it becomes clear that one kink in this chain can massively delay an anticipated movement. Some of the causes can include:
- Failure to sign a certain document
- Poor cognisance in regard to returning messages or keeping appointment dates
- A lack of due property diligence
- Litigation issues with one party involved
- Failure to obtain a mortgage
Not only can this be extremely frustrating for both the buyer and the seller, but anyone who needs to sell a London property quickly could suddenly find themselves in a real bind. How can these situations be avoided?
How to Break the Cycle
It is first important to know when to leave such a chain. Should any of these situations above occur, it is best to walk away as opposed to keeping the faith that issues will suddenly get resolved. Still, the only winning move is really not to play. Assuming that you are planning on selling a property, there are a few critical steps to keep in mind.
First, only choose buyers who can prove that they themselves are not currently involved within a chain. As they may not be aware of their own situation, perform research if necessary. Should you have the ability to sell a London house fast, you will have avoided the chain altogether and you can then find yourself in the enviable position of having become a cash buyer. If you are hoping to purchase a property, a great way to avoid any such chains is to search for an empty lot or a home owned by a vendor but that is currently unoccupied (such as a vacation house up for sale).
However, selling a house quickly and avoiding chains can still be tricky. Molae Properties can help you to break this literal “chain” while providing you with the liquidity that may otherwise be lacking.