It is undoubtedly the nightmare scenario everybody dreads when buying a home. Typically at the worst possible time, the sale falls through and there is little you can do about it.
Unfortunately, it is a reality faced by a surprising proportion of prospective homebuyers. Research suggests that more than 300,000 purchases fell through last year alone, creating heartbreak and uncertainty for those involved.
Why Do House Sales Fall Through?
Home sales fall through for a variety of reasons, but the most common of all are as follows:
- Gazumping: A term that applies when the seller accepts a higher bid from a prospective buyer, even though they have already agreed to sell the property to someone else.
- Property surveys: Issues identified during property surveys can put the sale of the home in jeopardy, if they are considered problematic or unacceptable by the buyer.
- Finances: Contrary to popular belief, a mortgage in principle by no means guarantees eligibility for a home loan. If a mortgage lender withdraws their offer for any reason, the buyer may not have the finances to go through with the purchase and may need to consider another product such as bridging finance.
Unfortunately, there is nothing anyone who faces any of the above realities can do to turn things around. When the sale of a property falls through, it is almost always the case of having to start again from scratch.
How Can You Protect Yourself?
The best approach is therefore to protect yourself as robustly as possible from the above scenarios.
For example, prospective homebuyers are advised to obtain a mortgage in principle (aka decision in principle) and a select and reliable conveyancer at the earliest possible stage. Adopting a proactive approach (as opposed to reactive) can reduce the risk of a sale falling through.
It is also important to build the best possible relationship with the seller, again from the earliest possible stage. If you are on positive and amicable terms with the party selling the property, there is a lower likelihood of them withdrawing their offer and selling to someone else at a higher price.
Home Buyer’s Protection Insurance can also be useful, though often overlooked as an additional and avoidable expense. In the event that you face any costs due to the purchase of a property falling through, they will be covered by your insurance policy.
Independent Broker Support
You can also provide yourself with an additional layer of protection by enlisting independent broker support. Along with helping you find the best possible mortgage to suit your requirements and budgets, your broker can advise on the steps that can be taken to reduce the risk of an unsuccessful home purchase such as alternative funding with bridging loans.
The housing market is inherently unpredictable and it is impossible to rule all negative eventualities out of the equation. But with the best possible support and representation along the way, you will at least be in a much better position to cope if things take a turn for the worse.
For more information on the above or to discuss any of the services we provide in more detail, contact UK Property Finance for an obligation-free consultation.
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