*This is a collaborative post.
New figures suggest that around one-in-three property sales fall through after a sale has been agreed.
The data shows that 32% of buyers and sellers experienced the disappointment of a failed sale between January and March of this year. That equates to more than 30,000 home movers each month.
If you’re keen to avoid the upset of a failed sale and maximise your chances of success, these top tips could help.
1. Get your finances in order so there are no surprises
The figures show that 25% of failed sales were as a result of the buyer being unable to secure a mortgage. With the rising cost of living and climbing interest rates, mortgage lenders are becoming increasingly cautious about how much they are prepared to lend, so it’s important that you speak to a mortgage advisor before you start viewing any properties. An Agreement in Principle will give you a good idea of your borrowing capability and therefore determine the budget for your property search. It’s also worth noting that lenders are more cautious about any unusual properties, so if you want to maximise your chances of success it’s important to choose a property that is unlikely to throw up any ‘unknowns’ or areas of concern for the lender.
2. Know what you’re looking for
There is stiff competition for properties at the moment, so knowing what it is you’re looking for will avoid wasting time and enable you to act quickly when you do find the right property. It will also mean you’re less likely to get cold feet during the purchasing process.
It’s also important to note the impact that a personal touch can make in a highly competitive property market. If the seller is trying to choose between you and other buyers in similar circumstances, being able to communicate your certainty that this is “the one” for you, and reiterating your commitment to making the sale succeed, can help you beat the competition. Sellers don’t want a failed property sale any more than buyers, so if they know you’ve been looking for a property exactly like theirs and are going to be committed to the sale, your offer is more likely to be successful. If there are any other circumstances that contribute to your certainty about the property, for example wanting your child to attend a school nearby, or moving for work or to be near family, communicating them to the seller may also help your plight.
3. Make yourself an attractive buyer
When you’re competing against other buyers, it’s important to make yourself an attractive prospect. That means getting all your finances in order and having any mortgage finance lined up in advance. It also means making your situation as simple and straight forward as possible. The most attractive buyer will always be a chain-free one, who is flexible about the date they can move. If you’re not able to make yourself chain-free, it’s important to choose your own buyer carefully. Property chains are one of the biggest causes of failed and delayed sales, so keeping the chain small will increase your chances of a successful sale and purchase.
Danny Luke from Quick Move Now says: “Rising inflation means many would-be buyers are feeling the pinch, and that is reflected in how much mortgage providers are willing to lend. This is beginning to have a real impact on buyer’s ability to commit to a property purchase and see it through to completion.
“If you’re hoping to move in the next few months, it’s important to review your situation and ensure you do everything you can to maximise your chances of a successful property purchase. This means making yourself chain-free, if possible, and getting your finances in order.
“Unfortunately, there will always be circumstances beyond your control, especially if you’re part of a property chain, but ensuring your personal situation is as proceedable as possible will help to improve your chances of success.”
