Even though the pandemic hasn’t led to a massive increase in the number of sales falling through, despite a massive rise in activity and transactions, HBB Solutions says that even a small percentage of homes falling through is still a costly issue that more agents can avoid with the right fall-backs in place.
Fall-through prevention methods for agents
According to property platform WiggyWam, in the UK residential property market, there are an average of 225,000 fall-throughs each year. This is the equivalent of 1-in-4 fall-throughs that cost an average of £2,700.
Chris Hodgkinson, managing director of HBB Solutions, says: “Any collapse of a house sale is a tragedy for the buyer and seller – and affects others too, including agents, conveyancers, etc. Transactions that fall through typically leave buyers and sellers discouraged and out of pocket by thousands of pounds.”
“Agents must be open to different methods that decrease the likelihood of fall throughs. Simply assuming another buyer will just come along creates too much risk. By repairing chains and part exchanging, agents can not only protect themselves, but they can protect their clients too.”
Agents can repair chains
Various pieces of research throughout the years have suggested that around one in three chains break down. Property chains are created when there are multiple buyers and sellers lined up, increasing the chance of the property purchase falling through if someone who forms part of the chain breaks it.
Changes in personal or financial circumstances, sudden changes of hearts, worrying survey reports, gazumping, or gazundering could all result in a chain-breaking.
Hodgkinson explains how buyers and sellers can avoid this issue: “In as little as 7 days of being informed of the issue occurring, the property in question is purchased with a discount by HBB Solutions, or a fee starting as low as 8% is charged. Then we can proceed to get it back on the right track.”
“Alternatively, part-exchanging is a hassle-free solution that will not buy your time and will increase consumer satisfaction with the moving process.”
Avoid fall through by part-exchanging
By working together with developers of retirement living, a homeowner can part-exchange their home and buy a new-build property.
Hodgkinson explains: “To begin the part-exchange process, homeowners just need to complete an offer request form. Then an estate agent will conduct a property valuation and within 24 hours the buyer will receive an offer.”
“The quickness of the part exchanging process is often the most favourable part of the whole process. This is because fall throughs are often caused by the process taking too long, leading to the buyer finding a house elsewhere or losing interest altogether.”
“Part exchanging is always a rapid process as developers aim to sell homes fast, meaning sellers won’t get trapped in a chain.”
“The UK market has shown resilience throughout the Covid-19 pandemic and schemes including the 95% mortgage scheme continue to make housing more affordable, allowing the market to remain a busy one. The busier a market is, the more the possibility of the transaction falling through increases.”
He concludes: “The more agents make use of part exchanging and chain repair services, the more the property industry can make fall throughs a problem of the past.”
