When I started in Estate Agency (way back in 1991), the industry rate for house sales falling through was 33% – Jump forward to 2018 and its 36% ! Quite clearly there isn’t an “App for that” !If your selling your home and it happens to you, you’re devastated – if your buying and it happens, you too are crushed and if you’re in a chain, then there are a whole host of people who’s faith in humanity just disappears right out of the window.
Here are the six Nominations for the category “You Have Just Ruined My Life”
The Vendor will normally withdraw from a sale due to mainly personal reasons – not being able to find a new home – uncertainty within the market place or just simply get cold feet. The term for this is GAZANGING.
Sometimes the purchaser will get either a feeling that perhaps this isn’t the one – a genuine fear of commitment towards buying any home – a worry about financially overstretching themselves or worst of all they made several offers and have decided to go with another property
The purchaser, so excited by the prospect of buying a home has forgotten to agree their mortgage in principal with a lender – once this process starts they may find that the monthly payments are too much, they can’t raise the required mortgage needed or find something negative in their credit history which stops the application in its tracks.
4. Gazundering and Gazumping:
Two such wonderful words, both with sinister meanings – Gazundering is when the property is just about to exchange contracts and the purchaser reduces their offer. Gazumping is when a vendor excepts a purchasers offer and during the paperwork process with the solicitors, the vendor withdraws to sell to a higher offer that seems to have appeared from nowhere.
There are great solicitors who will use email, get on the phone to sort out issues, chase clients and other solicitors for information and try to speed up this outdated process as much as they can and then there are those whose feet dragging is legendary, will only write letters for the post, avoid phone calls and treat their client as just a number. The longer the process goes on (12 weeks is currently average)the more agitated people become and the closer you edge towards the ‘fall through’ cliff.
The survey is done on behalf of the mortgage lender and if they find that there is an issue with the home they may reduce the amount they are willing to lend on it. A purchaser maybe put off by the amount of work needed or simply there is no agreement reached on a renegotiation of the price. Most of the issues are only discovered at the point of survey and if you pull out as the vendor and resell the property … guess what … those problems will still be there on the next survey!
Whether a Vendor or a Purchaser there are three groups of people that you should be able to depend on – Solicitors – Financial Advisors and Estate Agents. Whilst some situation are unavoidable (Illness, Redundancy and Tragedy etc..), with the right trio behind you, not only will you exchange contracts in a shorter space of time ( 7-10 weeks), it will be a less stressful experience and reduce the fall through rate (in my case down to 16.9%)