New data released this week, has revealed that one in four house sales fell through in 2015.
The reasons for this are varied, but many of them highlight the advantages of selling to a cash buyer.
The four biggest reasons for house sales falling through in 2015 were:
1. House buyer changing their mind.
2. Problem discovered about the property at the survey.
3. Buyer unable to secure mortgage finance.
4. Chains breaking down.
Looking at these issues individually, we can see that they would not occur if you were selling your property to a cash buying property service like ourselves.
1. House Buyer changing their mind
In the U.K., a property sale is not guaranteed until contracts are exchanged. For people buying a property to call "home", there is huge emotion attached and they can get cold feet right up to the point of exchange, and just simply withdraw from the sale. They may have found another property they like better, or they may just simply have baulked at the commitment of buying a house.
Wherever emotion is involved in a house sale, it is far less likely to complete.
Additionally, the typical property sale in the UK takes around 3 months to complete. A buyer's personal circumstances may change during that time, such as being made redundant, which would mean they may back out of the purchase.
Cash house buyers like ourselves buy and sell property as a business, and therefore, there is no emotion involved as we are treating it as a commercial transaction. We can also complete in very short time frames, giving the seller additionally peace of mind.
Once you accept our offer, you are guaranteed that the sale will complete, and that you will have the cash in your bank account on a nominated date.
2. Problem discovered about the property at survey
Many homebuyers will get cold feet if there is a problem with the property at survey. They may not have the funds to rectify the problem, or their mortgage lender may refuse to lend on a property with such an impediment.
There are some issues with properties that actually make them un-mortgageable, meaning that selling them to a cash buyer is the only option. These include properties with short or defective leases, sitting tenants, structural problems, or those properties of a non-standard construction.
Here at Open Property Group, "problem properties" are never a problem to us! We will consider any property with any problem, and even buy derelict properties.
3. Buyer unable to secure mortgage finance
In order to cool the housing market, the Government has been introducing new measures to tighten lending criteria.
These include the Mortgage Market Review and also giving the Bank of England greater powers to control lenders.
This means that many people are struggling to secure a mortgage, or they find that they can no longer borrow as much as they thought.
Here are Open Property Group, we have a substantial property buying fund in our bank account, and therefore do not need to get involved with lenders.
If you have owned the property you are selling for less than six months, you may also find that buyers struggle to secure finance as lenders like to see "seasoning of the title". In these cases, a cash sale is often the only way to go.
4. Chains breaking down
Being involved in a chain is a nightmare for property sellers, as you are reliant on other transactions completing in the chain, in order for your sale to go through.
Many property transactions fall over because the chain breaks. The more links the chain, the greater the chance of a sale falling through.
There can be numerous reasons why chains break because so many people are involved - buyers, sellers, mortgage lenders, estate agents and solicitors. The chain is only as good as the weakest link and will only move as fast as the slowest transaction.
See our blog - Help! My chain has broken down!
Jason Harris Cohen of OPG said "Chains cause buyers and sellers added hassle, stress and worry to the property transaction process. A chain can add months of additional uncertainty, and essentially increases the risk of a property sale falling through.
At Open Property Group we offer a solution to selling your house fast and without hassle. Our house purchases are quick, hassle free and you can plan ahead with certainty".
Whatever may be the reason that you wish to sell a property, we offer the perfect service to guarantee a painless sale.
We make instant offers and with no obligation. When selling your house to us, we charge no fees whatsoever and cover your legal expenses on completion too. No hidden charges, just peace of mind and a quick sale with flexible moving dates to suit our customers.
Please get in touch for your free, no obligation offer to sell your property painlessly for cash!
Open Property Group have a mission to raise standards and improve customer experience.
Give us a call on 0800 990 3939 to receive a no-nonsense cash offer for your property or send us an email at email@example.com
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