Why are so many sales falling through?

staffsuk

I just wondered what peoples opinions were as to why so many sales are falling through? I've been closely watching the properties for sale in my immediate area and I'm quite stunned at just how many come back onto the market having gone SSTC

I've just seen another two today come back after being SSTC several weeks ago.

Is it that the survey valuations are coming in too low - or possibly when it comes to exchange the lenders don't stump up the funds?

besonders1

Maybe some buyers are living in a dream world, offering on homes these just can't afford. As you say banks are now setting the "new valuations" which does not match sellers expectations.

poppysarah

I've seen a couple return to available this week.

I've seen one optimistic bunny increase his price though.

Sammy85_2

I would guess that the valuations are coming back way lower than anticipated, the seller wont reduce and the buyer cant find the extra cash to proceed!

Luckily for us, our seller saw reason and reduced.

pizzagirl

staffsuk wrote: »

I just wondered what peoples opinions were as to why so many sales are falling through? I've been closely watching the properties for sale in my immediate area and I'm quite stunned at just how many come back onto the market having gone SSTC

Finance. The buyer and vendor agree a price but the valuation by the bank comes way under that price. So ultimately people are still overvaluing their properties.

alexlyne

Is this a good way to try to negotiate then? Offer close to asking price to get seller to bite, then the valuation comes back low, so renegotiate or pullout?
Or is it risky?

Sammy85_2

Depends on how much money you want to risk?? By the time the valuation comes back you'll already have racked up costs of the valuation/survey and your legal/search fees probably.

If the seller wont budge and you have to back out, then you've just wasted a whole lot of money.

bob79

I haven't heard that lenders back out once the mortgage offer is made (though they usually state in their conditions that they are allowed to). It would really surprise me if they do.

I guess it is valuations coming back low or buyers getting cold feet because of all the doom and gloom in the news (and perhaps for them personally in reality).

Debt_Free_Chick

It could be that the lenders are valuing the properties lower than the sellers.

Or it could be that the buyers don't have the finance lined up when they make an offer and later find they can not borrow as much as they thought.

Who knows?

loki13

A house we had an offer accepted on went SSTC on rightmove, sold board went up, and then we received the searches, showing a public sewer under the house, no build over permission for the extension, and then the home buyers survey pointed out a number of problems, so we withdrew the offer. If a house has gone SSTC to available a few times, I'd be wary

poppysarah

I've noticed as well that some are coming available at a lower price...
I assume that means they've had it valued for a lot less....