Pulling out if chain too big

F37A

lookstraightahead said:

I suppose you need to just look at risk factors. As everyone says, there is no guarantee. A long chain will of course pose a bigger risk, but there are other key elements, like inflexible vendors / buyers, ' under' valuations, people just getting cold feet, slow solicitors.

But, of course a longer chain pushes the risk up. It's one element that you can decide on almost immediately. I think it's much riskier as it involves people and emotions. Two things you cannot control.

On the valuations point I'm wary of lenders down valuing the property and there being a good difference to sale price agreed. Although sale price can be justified on basis of supply / demand if substantially higher than valuation. 

lookstraightahead

F37A said:

lookstraightahead said:

I suppose you need to just look at risk factors. As everyone says, there is no guarantee. A long chain will of course pose a bigger risk, but there are other key elements, like inflexible vendors / buyers, ' under' valuations, people just getting cold feet, slow solicitors.

But, of course a longer chain pushes the risk up. It's one element that you can decide on almost immediately. I think it's much riskier as it involves people and emotions. Two things you cannot control.

On the valuations point I'm wary of lenders down valuing the property and there being a good difference to sale price agreed. Although sale price can be justified on basis of supply / demand if substantially higher than valuation. 

Yes it depends who is forking out (needed to check that twice 🤣). 

Lumiona

Our 3 property chain is currently at 5 months with no clear reason why it has been so slow, just everyone bobbing along in their own sweet time without a care in the world whilst we've been pulling our hair out trying to understand what the problem is??

Soot2006

I was really anxious in a chain of 5 as everything seemed to take forever and ever in the early weeks, and then suddenly it was gogogo and in the end the whole process took 3.5 months from offer to completion.  In fact, it would have been quicker except that our buyer used a cheap conveyancing firm. Everyone else in the chain had local solicitors who were totally on the ball and none of the properties threw up unexpected queries. It went from "we're for XYZ" and the sense that several more months would be needed to "also, do you want to exchange and complete next week" ... other than the removals stress the last two weeks just snapped by in a flash. Chain isn't the problem. People are the problem. Properties with queries, etc ...

badger09

End of August 2020, we became 3rd from top in a 6 party chain , where our vendors had promised to move in with family if their (currently tenanted) purchase caused any delay. We had also agreed to move into rented if necessary as we were 100% committed to selling.

By mid November, we became top of 4 party chain when our vendors lost their purchase as tenants were not moving. Our offer on another property was accepted within a week. Vendor had lost previous buyer on the day they were due to exchange. 

Exchanged on our sale 18 December and completed 8 January. Moved into temporary accommodation while being constantly chased to speed up. We were ready to exchange mid January but new vendors' vendor delayed due to mortgage issue.

Exchanged 1 February and completed 4th. So just over 5 months in total (4 months for our sale, 10 weeks! for our purchase). Not bad, considering broken chain, COVID, Stamp Duty holiday, lockdowns, Xmas & New Year etc.

In no hurry to repeat the ordeal though.