"No one wants to see their dream property slip through their fingers...."
The survey of 2,000 homebuyers - who bought their home in the previous two years - found that it takes over 4.5 months on average, from starting a property search to having an offer accepted. However, 28% of purchases fell through after that point.
According to the research, the main reasons for a property purchase falling through were:
- The seller decided not to sell their home after all (27%)
- The buyer pulled out, as their own property sale had fallen through (21%)
- The buyer found somewhere else to buy (21%)
- The buyer was 'gazumped' (21%)
Of those who had lost money and knew how much they were out of pocket, the average loss was £2,899. This included conveyancing, survey, mortgage valuation or brokerage fees paid and not recovered.
Many homebuyers experience failed transactions due to problems in the 'property chain' - the line of buyers and sellers linked together because each is selling and buying a property from another.
Which? Mortgage Advisers gives the following top tips for buyers to help avoid long or complicated chains and increase the chance of a successful transaction:
1. It's worth considering selling your property and moving into short-term rented accommodation or with family or friends. You'll then be a chain-free cash buyer, which you can use to your advantage when making an offer as you'll be much more appealing to the vendor.
2. If you're buying and can afford to be picky, look for properties where the upward chain is short or, even better, non-existent - for example if the vendor owns it as a second home and doesn't need to find somewhere else to live.
3. New-build homes have no upward chains for obvious reasons – and if you've got a property to sell, the developer may offer part-exchange, meaning they'll buy your old property to help speed things up.
4. If you're in a hurry, try and get the vendor of the property you're buying to agree to a date by which they are prepared to move out, whether they've bought somewhere themselves or not. Vendors will sometimes agree to move into rented accommodation to avoid risking the deal falling through.
David Blake at Which? Mortgage Advisers, said: “No one wants to see their dream property slip through their fingers, particularly if it leaves you out of pocket, but there are steps you can take to ensure you are in the best possible position.
The best way to protect yourself from your purchase falling through is to avoid a lengthy chain. With the right preparation and research, including getting your finances in order prior to making an offer, you can avoid complicated chains and improve your chances of success.”
