In the first quarter of 2022, 32% of property sales fell through of which 25% were impacted by buyers unable to secure a mortgage after rising costs impacted their repayment figure by the time completion approached.
With further interest rate rises announced and inflation reaching a 40-year high of 9.1%, this is expected to further impact completion levels, as chains continue to collapse due to many prospective purchasers finding themselves in a completely different financial position then when they first made an offer.
The recent double interest rate increase in quick succession has resulted in some buyers seeing their mortgage repayment calculations increase significantly before they’ve made it to completion, adding hundreds of pounds to the monthly total and taking many above their borrowing capabilities. This is then causing them to return to the sellers to try and negotiate a lower price or rescind their offer entirely.
Another factor impacting completions is a lack of stock that is seeing those that accept an offer on their own home struggling to find a suitable property of their own, which is then forcing them to pull out ahead of exchange.
This is creating a perfect storm that is causing sleepless nights for buyers, sellers and estate agents, with just one chink in the chain causing numerous deals to fall through in the blink of an eye.
It is at this stage where an estate agent overseeing the sale of the home that broke the chain could turn to their black book and speak to buying agents to try and secure a new buyer.
Buying agents, such as, Astute Property Search will help much more than just finding a property, they also tend to have a healthy list of active buyers that could potentially be interested in a home that has recently fallen through and step in to relink the chain. A good buying agent would also support vendors that have accepted an offer but need help sourcing a new home in quick time. This could prove especially vital if the vendor is looking in an area outside of where they’re selling, and their estate agent is unlikely to have the necessary contacts to find them something suitable before the chain collapses.
One of the crucial elements of using a buying agent, is that they can help to save time, both at the planning stage and the house searching stage. Their unapparelled knowledge of the property market means that they can help buyers keep up to date and informed about new properties, pending local developments and neighbouring new builds.
Their knowledge also means that they can advise on local schools, transport links and local facilities, meaning the prospective buyers will have saved weeks of scoping the property out and put them in a position to make an offer almost immediately. In the meantime, the acting estate agent could keep the rest of the chain informed, whilst they work to get a new offer over the line.
