Losing out on your dream home can be heartbreaking. Under the English conveyancing system, the seller or purchaser is free to pull out of the purchase process, without penalty, until contracts are exchanged. However there are steps buyers can take to maximise their chances of concluding their purchase successfully.
National Association of Estate Agents (NAEA) latest national research reveals that nationally there are eight buyers for every property that comes to market. With this level of competition, buyers are increasingly disappointed, even if their offer has been accepted.
To minimise your chances of disappointment, it is sensible to find out as much as possible about the seller’s situation. For example, ask if they have already found a property to buy, and if so, whether or not the upward chain is complete. All of these factors could impact your purchase. Estate agents are legally obliged to inform sellers of any offers that are made. Unfortunately this can sometimes result in gazumping. Rapid price increases in some areas have led to some sellers leaving their property on the market a little longer and hold out for a higher price than the original valuation. It is important to work closely with the agent to understand the seller’s situation and prepare your approach accordingly. Here are the NAEA’s top tips for those who have just had a house purchase fall through. Find out what happened – A purchase could fall through for a number of reasons. If, for example, the seller was in a chain that broke down, the property could come back to the market, or the chain could re-form with a different property being chosen by someone in the chain. Prioritise – Sit down and list exactly what features you liked and disliked in the property that you missed out on. This can help focus your search if you do decide to re-enter the market and may even help to find a more appropriate property. Communication is key – Keep in touch with the agent as they will understand your situation and may be able to give you early warning of similar suitable properties in your search area. Remember that you are an attractive buyer for anyone looking to make a quick sale, as you will probably already have your mortgage finance set up and the ability to move fast. It is reasonable to ask for a property to be taken off the market once your offer has been accepted and your mortgage finance and survey are confirmed. This can minimise the chances of additional offers coming in over and above yours. Don’t put all your eggs into one basket – If you are in rented accommodation, once an offer to buy is accepted, there can be temptation to give notice straight away on your current home. Remind yourself that nothing is set in stone until you have exchanged contracts. Factor this into your decision to inform your landlord. Get the best possible advice – Much of an agents’ involvement in a property transaction is behind the scenes, and a good estate agent can help a sale progress much more easily and smoothly. To ensure you are getting the best possible advice, always talk to an NAEA member agent.
