Top tips: How to spot the signs a house sale could fall through and what to do to prevent it

The consequences can be far reaching.  As many of 1 in 3 house sellers across Yorkshire will see their sale collapse, according to one property buying expert, and it isn’t just upsetting; it can also cost you a lot of time and money.

So, what are the signs, and what can you do to stop it happening?  We spoke to Chris Hodgkinson, property buying expert and Managing Director of House Buyer Bureau.

Chris says, “Since 2010 we’ve bought and sold over 3,500 properties so we’ve seen our fair share of property chains collapse.  Sometimes there is nothing you can do when a buyer gives you no warning and pulls out, but there are plenty of things you can do to minimise the risk.”

Minimise the risk

First up you should always make sure your buyer is in a ‘proceedable position’.  A good estate agent will always do detailed checks on any offer they get for your property.  That should include details about the buyer’s personal circumstances, their reasons for moving, when they want to complete, are they in a chain themselves, and how they’re going to fund the purchase.  This will help you decide how motivated and credible they are.

Have they already got an ‘agreement in principle’ from a mortgage lender - and if so, how long is left on the offer as they only last 6 months and many house sales take months to complete.

Or are they a cash buyer?  In which case, can they provide proof of funds?  If not, then this should be a red flag and you must think twice before accepting an offer.

Secondly make sure you’re working with a proactive estate agent with a good track record of completing sales, not just finding buyers!  If your agent goes quiet on you, it is a red flag that things might not be progressing well.  Don’t be shy about contacting your agent for regular updates.  The same goes for your solicitor.  Selling a house is a complex, legal process and you want to be working with a solicitor with a good reputation for moving things at pace.

It might sound odd, but if you want to stop a buyer getting cold feet then make them feel like they’re getting a bargain. It is a sure-fire way to keep them motivated and focused on your property.  Sales often fall through because buyers try and renegotiate at the last minute – gazundering – but if your house is already well-priced this is far less likely to happen.

Another reason sales fall through is due to issues found during the survey.  If you know there are issues that could jeopardize the sale, then either deal with them before you put the house on the market, or market your property as “in need of repair” and price it so it is cheaper than anything locally.  It will avoid getting stuck long re-negotiations later.

Breaking the chain

Chris continues, “House sales often fall through due to a ‘property chain collapse’.  This is where we the purchase of one property is dependent on the sale of another.  And the longer the chain, the more chance of a collapse.” 

One way to minimise the risk of collapse is to become a chain-free buyer. If you’re stuck in a chain, you could choose to sell your property and move into rented accommodation for a short time or move in with family.  This would make you a cash buyer for your next property.  Cash buyers are very desirable because they make the sale much simpler and can usually complete in shorter timescales.  This often means you can negotiate a discount off your next house as well!

Sell to a property company

If you are stuck in a chain, have lost your buyer, or simply want to become a chain-free buyer, the other option is to sell your property to a professional property buying company like House Buyer Bureau.  Cash buying firms will offer you less money for your property, but they are a guaranteed way of getting a quick, simple, cash sale in a timescale that suits you.

Read more about selling your house fast, on the House Buyer Bureau website here.