Posted on August 15, 2017 at 11:02 am
New data released this week, has revealed that one in four selling a property fell through in 2015.
The reasons for this are varied, but many of them highlight the advantages of selling a property to a cash buyer.
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 a property to a cash buying property service
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 balked 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 buy and sell a property as a business, and therefore, there is no emotion involved as it is treated it as a commercial transaction. It can also complete in very short time frames, giving the seller additionally peace of mind.
Once you accept an offer, you are guaranteed that the sale will complete and that you will have the cash in your bank account on a nominated date.
Many homebuyers will get cold feet if there is a problem with the property at a 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.
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.
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.
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 of 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.
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 selling a property falling through.
Whatever may be the reason that you wish to sell a property, St James Investments 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.