According to data provided by House Buyer Bureau, the average expense associated with a property fall-through during the first quarter of 2023 is reported to be £3,370 per transaction. This figure reflects a 2.1% rise when compared to the final quarter of 2022.
In terms of fall-throughs, approximate statistics indicate that there were 63,970 instances during the opening quarter of this year. This represents a decrease of 16% compared to the previous quarter of 2022, and an 11% decline in the year-on-year comparison.
In the dynamic property market, fall-throughs are a common occurrence referring to the unfortunate situation where a property sale, previously agreed upon between a buyer and seller, fails to reach completion. Fall-throughs can happen at different stages of the transaction process, ranging from after an offer has been accepted to even after contracts have been exchanged.
Financing Challenges: One frequent cause of fall-throughs arises when a buyer is unable to secure the necessary financing or mortgage approval within the agreed-upon timeline. This may be due to changes in the buyer's financial circumstances, failure to meet lending criteria, or an unexpected decline in property valuation.
Chain Complications: Fall-throughs can occur when a property sale is part of a chain, where multiple buyers and sellers are involved in interconnected transactions. If any link in the chain encounters an issue, such as a buyer or seller withdrawing, it can lead to a collapse of the entire chain and subsequent fall-throughs.
Survey or Valuation Issues: During the sale process, a surveyor may identify significant defects or problems with the property, or the lender's valuation may come in lower than anticipated. These discrepancies can result in renegotiations, delays, or even the buyer withdrawing from the purchase altogether.
Legal Complexities: Fall-throughs can be triggered by legal complications, such as unresolved title issues, planning permission problems, or disputes over boundaries. These matters may arise during conveyancing, causing delays or prompting buyers to withdraw from the purchase.
Change in Personal Circumstances: Unforeseen changes in personal circumstances, like job loss, illness, divorce, or financial challenges, can lead to fall-throughs. Such circumstances may render individuals unable to proceed with the property transaction.
Buyer's Remorse: Occasionally, buyers may have second thoughts or a change of heart about the property they intended to purchase. They may discover a more suitable property, lose interest, or simply decide not to proceed due to personal reasons, resulting in a fall-through.
Remember, while fall-throughs can be frustrating, they are not uncommon in the property market. Employing effective communication, conducting thorough due diligence, and working with experienced professionals can help reduce fall-throughs and navigate challenges that may arise during the buying and selling process.
At Coakley & Theaker, we aim to help you make an informed decision with whatever you want to do in the housing market. We know upgrades and improvements are vital for homeowners, but equally, not every method is ideal for every home or household. If you would like to discuss your options and see how you should plan your next house sale, we are always more than happy to assist you.
At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.