Why are so many sales falling through?

chickmug

In estate agency there are always a % of sale that fall through. All for justifiable (??????????) reasons by the party that caused them to fall through. Sometimes the seller, or the buyer, or usually one of the chain dropping out.

In good times the best I have known is only to lose 10% after offers were accepted but in bad times it could rise to 33% but at times felt like every other one was collapsing.

A case then of the seller and the agent picking themselves up, dusting themselves off, having a day to get over it and then back to the grindstone.

Bl**dy stressfull a round eh??:eek:

staffsuk

Hmmm - I guessed it may be that the valuations are coming back that much lower making it difficult for the buyer to proceed. Has anyone actually had that happen to them on here?

Surely then the vendor must realise the same situation will arise again once it gets to the survey / lender valuation stage? In fact if it's some months later and prices keep falling it could in fact be lower

If it were me (and it was last year) I would accept that fact and just accept the valuation in a falling market...

besonders1

Not exactly exciting for sellers I know, but that could be true about valuations but also it could be wannabe buyers that don't have the deposit. I have noticed many homes go SSTC on rightmove for months on end, yet no-one has actually moved into the house. Only a few houses have came back on the market in my area but judging by the response on here it looks like the "dead cat bounce" could be a false sign of "green shoots"

charliee_3

we pulled out of 1 house after the survey as the surveyor said that even once all the (considerable amount of) work had been completed it would, in his opinion only be worth 140k (we had offered 145k on a house that was up for 159k)
we then went for another house and offered 146k including the shed, the survey told us it was only worth 138k so we renegotiated with the vendor and agreed to meet them half way.. its still going through so far!!! this was the surveyor we chose oursleves.. interestingly the mortagage valuer agreed the £146k, but they were apparently only in there10 mins and we have a big deposit so i guess they dont have that much to lose....

probably is the banks, they have been stung and now they are being super careful to protect their money...

linda4767

charliee wrote: »

we pulled out of 1 house after the survey as the surveyor said that even once all the (considerable amount of) work had been completed it would, in his opinion only be worth 140k (we had offered 145k on a house that was up for 159k)
we then went for another house and offered 146k including the shed, the survey told us it was only worth 138k so we renegotiated with the vendor and agreed to meet them half way.. its still going through so far!!! this was the surveyor we chose oursleves.. interestingly the mortagage valuer agreed the £146k, but they were apparently only in there10 mins and we have a big deposit so i guess they dont have that much to lose....

probably is the banks, they have been stung and now they are being super careful to protect their money...

Sounds like you have been lucky, the property i have been trying to buy has been down valued by 30k and the sellers are refusing to budge on their price. They will never sell it

david29dpo

Judging what the banks have done to the country, can we trust them the value anything?

Sammy85_2

In our case, the valuation came in at £190k, our offer had been £205k, on a house that was marketed at a sensible price. We needed 15% deposit to continue with our offset so had no more money to spare. Our seller reduced as far as they could and we had to meet them a little above the valuation for the sale to continue.

The seller of their new house refused to budge on her price, as she had been told by her estate agent that the price she had accepted was more than reasonable (£15k under asking price) and that the surveyor was on another planet (the valuation was a further £15k off the offered amount).

She was in no rush to sell as she doesnt have a mortgage on the house and has already moved to her new house. She was more than happy to put it back out for sale until the right money came along and she was considering renting it out.

Left us and our seller in a difficult spot for a while.

kunekune

Around here, most sales seem to proceed at the moment. The week we had our offer accepted, three similar sized and priced houses all had offers. We had viewed all, let's call them A B and C. We had been trying to purchase A for a reasonable price for nearly a year and made our last offer on the Friday. Supposedly the vendor had another one the night before, of asking price, and we lost out. We recovered fast, worked out that B was a better property and had that one accepted. Anyhow, our mortgage was organised fast and so was the one for property C: contracts were exchanged at around the same time (the delay in completion is at our request). Property A, on the other hand, is still SSTC, nearly three months after the offer was accepted. The vendor was always very unmotivated, and had not started to look for a property herself, so it might be her rather than the buyer who is stalling. But it is kind of ironic if it ends up falling through when she could have taken us instead!

Georgie4

Sammy85 wrote: »

In our case, the valuation came in at £190k, our offer had been £205k, on a house that was marketed at a sensible price. We needed 15% deposit to continue with our offset so had no more money to spare. Our seller reduced as far as they could and we had to meet them a little above the valuation for the sale to continue.

The seller of their new house refused to budge on her price, as she had been told by her estate agent that the price she had accepted was more than reasonable (£15k under asking price) and that the surveyor was on another planet (the valuation was a further £15k off the offered amount).

She was in no rush to sell as she doesnt have a mortgage on the house and has already moved to her new house. She was more than happy to put it back out for sale until the right money came along and she was considering renting it out.

Left us and our seller in a difficult spot for a while.

This is the point that a lot of people seem to be missing with threads of how low an offer can I make etc - NOT everyone is desperate to sell and NOT everyone needs to sell at any cost. I think half the problem is buyers making offers on houses when they haven't sorted out their own finances and then when they apply for a mortgage they either can't get one or can't get one for as much as they have offered:eek:

charliee_3

linda4767 wrote: »

Sounds like you have been lucky, the property i have been trying to buy has been down valued by 30k and the sellers are refusing to budge on their price. They will never sell it

we were lucky, the vendors are desperate to sell and had found a house they loved so didnt want to lose the sale when they had already paid out for surveys etc..
we offered 146k in good faith that it was a fair/good offer and reflected the value as we are not experts...(it was actually up for 145-155k)
as it was when the valuation came back we went straight in with 142k meeting them halfway and said we didnt want to haggle over it.. they ummed and aah for about 5 seconds and accepted it.. i think they knew the house wasnt worth as much as they had it up for (we had offered lower intitally but they had turned it down) so alls well that ends well... so far... and no hard feelings... phew..