When it comes to selling property, property chains are one of the biggest headaches you can face. According to research, up to one in three intended property purchases falls through, leaving buyers and sellers with no choice but to start the process again.
There are numerous reasons why property chains can break – they’re especially susceptible where chains are long and complicated with many links on the way – and it’s hard to deal with the fact that someone you don’t even know dropping out of their sale or purchase could result in you losing money, time and effort with your property plans. We’ve put together the lowdown on some of the common reasons for property chains to collapse, plus some ideas on how to avoid the dreaded property chains in the first place.
Buyer finance issues
One of the most common reasons for property chains to fail is due to the age old issue of finance. If an intended, or hoped for, mortgage doesn’t materialise, or buyers discover they can’t raise all the capital they need, then they have to pull out of the agreement.
Property survey results
It’s always good to have a survey carried out before entering into a property purchase, but the results aren’t always what you expect. If a survey suddenly highlights lots of issues with the property that are going to be expensive to sort out, and no deal can be reached between parties, then the chain could end up breaking.
Gazumping and gazundering
You may have heard the terms gazumping and gazundering and both of these can be involved in the collapse of property changes.
If a seller suddenly finds a new buyer willing to pay more, then a property chain can break as a result of gazumping.
Or if a buyer changes their mind and suddenly reduces their price offer at the last minute, the chain can break due to gazundering.
Change of circumstances
Life doesn’t always go as planned. If a buyer or seller faces a sudden change of circumstances, such as losing their job, splitting up with a partner, being made redundant or facing serious illness, they may need to re-think their position and withdraw from the sale.
Change of mind
As annoying as it can be when you’re so close to achieving a property sale, sometimes the break of a chain can be simply due to someone, somewhere along the chain, changing their mind. It might be a case of suddenly deciding they don’t want to sell their home after all, that they don’t want to move, or a buyer who decides they don’t want that particular property any longer.
Whatever the reason for the property chain breaking, it can leave you feeling very frustrated, not least if you’re set to lose money in the process. But is there any way you can avoid the perils of the property chain?
How to avoid getting stuck in property chains
With the standard property buying and selling process, it’s hard to avoid property chains completely. But if you’re keen to avoid the woes of getting stuck in an uncertain and potentially risky property chain completely, there are some alternative options.
Rather than trying to sell your home and look for something else to buy at the same time, you can free yourself up by selling your property first. Of course, you’ll need to consider where you’ll live in between, and any rental costs this might involve, but it can save time and hassle to have sold your property first.
To avoid the issue of getting into a forward property chain when you’re buying another property, consider looking for a new home, buying off-plan, buying a repossessed or auction property. Already having sold your property will put you in a good position, with funds ready to go and no delays with a chain on your side.
If you’re in a position where you need to sell your London home fast for cash, then give Molae Properties a call on 0800 634 5892 and we’ll do our best to help. Why not also read our guide to selling your house quickly?