House Sales Falling Through???

deegsy

Has anyone ever experienced a house sale falling through? it must be an awful experience! I was just wondering what are the different reasons that this occurs? I was just reading that apparently 36% of all sales in 2015 fell through this seems rather high???

iantojones40

I've never personally experienced it but certainly the 36% seems right (if maybe not even a little low) considering the numbers of houses I see go sstc only to come back on to the market a few weeks later.
I can't help wondering how many failed sales are due to unrealistic asking prices where mortgage valuations fail to match the vendors lofty expectations.

AdrianC

My mother's in the middle of hopefully-third-time-lucky buying, after third-time-lucky selling.

First sale - buyer put offer in (summer 2014), never heard from again. Think their own chain collapsed.
Second sale - buyer pulled out on eve of exchange (Dec 2014), money not available.
Third sale - completed (Feb 2016).

First buy - pulled out when first sale fell through, re-offered when second sale on table, pulled out when that fell through.
Second buy - https://forums.moneysavingexpert.com/discussion/5412781
Third buy - Offer accepted this week...

So, at the moment, she's making 36% look low. She's in short-term rental at our neighbour's holiday cottage at the moment, and has to be out by the last weekend in May. The vendor of her current purchase attempt has a family wedding in mid-May and won't move before that.

What could possibly go wrong?

Davesnave

It's usually around 1/3 of 'sales' that fail to complete, but of course this covers a multitude of circumstances, from second thoughts to gazundering on the day of exchange.

Many of us have pulled-out after doing a little research; it's no big deal in the first week or so. Most houses come with some sort of down-side, and looking into the potential negatives can often sway the balance away from a particular property.

I once made an offer on a house which had a notified colony of bats in the loft. That didn't seem too bad, until I did some reading. Together with a couple of other issues, like being in an area where development was more resticted, I was eventually forced to reconsider my view of the property's potential.

kinger101

The only sale I've pulled out of is because the vendors still hadn't found somewhere to move to after three months. I can't be the only one, as there is the occasional post on here from potential buyers who've been spun the old "we'll move into rental...." line.

deegsy

O dear AdrianC i hope its third time lucky for your mother, i suppose its like a row of dominoes once one sale falls through the knock on effect goes all the way up the chain through no fault of the people further down.

eddddy

deegsy wrote: »

I was just reading that apparently 36% of all sales in 2015 fell through...

Was this the report you were reading about: http://www.propertywire.com/news/europe/uk-home-sales-failures-2015071010736.html

It was compiled by a quick house sale company - who advertise 'Quick Move in 7 Days - We'll Buy Any House Fast‎'.

I can't find any description anywhere of the sample of people they asked. If it was just their own customer base, that would be a very untypical group.

And a cynic might suggest that it's in their interests to overstate the problems associated with selling a house through a conventional EA.

csgohan4

Pulled out of sale because vendor couldn't be contacted and EA didn't have keys to the house

agrinnall

50% of my house purchases fell through last year, the first one I pulled out because the vendor refused to negotiate after specialist surveys were done, the second one completed as planned.

Mr_Potato

Our purchase fell through last year as the seller was taken seriously ill and withdrew days before exchange. Cost us about £2400 in survey, solicitor fees, mortgage application and broker fee. None of which can be recouped.
No associated sale as FTB. Hoping second time lucky.

DKLS

A seller changed their mind, after the estate agent let slip to the seller that we intended to flatten [STRIKE]their lovely 'architect designed" bungalow[/STRIKE] midden and build a new house on the plot.

Great plot hideous house.