Selling a property isn’t easy, even when you have the best help on your side. It can be a lengthy, stressful process that can test the nerves of even the calmest of people. The ultimate stress, however, is when a sale falls through before completion -- something that impacted almost a third (32%) of property sales during the first quarter of this year, according to data from Quick Move Now.
That means starting the whole, lengthy process of finding and securing a buyer again. It's a consequence to be avoided at all costs, so when you are selling how can you help to prevent your sale falling through?
1 Ask buyers if they have an agreement in principle
One of the most prevalent reasons for sales collapsing during the first quarter was buyers facing challenges in securing a mortgage, blamed for 35% of failed sales. Serious buyers will have secured a mortgage in principle early in the process, providing proof that they have the finances in place to buy.
2 Be honest about what needs doing
Another common reason for a sales collapse is when potential buyers find out the scale of work that needs to be done. This caused the collapse of 26% of the fall-throughs in the first quarter. Buyers may have overlooked the work required at the start of the process but have since costed up the necessary changes and realised it’s too much. Alternatively, issues surfaced in the survey report may have impacted their decision to pull out.
Unless potential buyers fail to commission a survey then any issues with your property will always be discovered before purchase and will lead to buyers either attempting to renegotiate the price to take account of the additional work that needs doing or pulling out of the deal entirely. Being open and honest about any issues with your property will not only help prevent this but is also important for compliance.
3 Be realistic about pricing
Another common issue is buyers failing to renegotiate the purchase price, causing 17% of the failed sales. Being realistic about your asking price will help attract buyers in the first place but having a little wiggle room for negotiation could also help keep your sale on track.
It’s also important to consider why a buyer is attempting to negotiate on the price. If it’s because of the need for additional work, then the negotiation is most likely justified so a blank refusal will risk your sale. Consider too the circumstances of your buyer – accepting a lower price could be the most cost-effective choice if they can move quickly and it prevents the sale falling through completely.
4 Make your property the most desirable
Of course, a buyer may just change their mind. There’s not much you can do here but ensuring that your property delivers everything they want will help to avoid them hunting for something better even after they’ve offered on yours. You should have clearly identified your target market at the start of the selling process and staged your property accordingly. Providing additional helpful information they might need which shows it's the perfect property for them could help keep them as a buyer.
5 Move quickly
Another common cause for buyers abandoning purchase plans can be the time it takes to conclude a deal. The latest figures from TwentyEA show that property transactions are now taking an average of 205 days to complete in the UK. In contrast, in Norway the process takes around a month. It’s no surprise that buyers can get frustrated.
The government is trying to accelerate the process through digitalisation, but this will take time. To help speed up the process ensure that you have all the information a buyer might need even before you list your property for sale. Respond quickly to enquiries and choose recommended and proactive experts, such as your agent and solicitor, to act on your behalf to keep the process moving.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.