Buying or selling a property is one of those life milestones that can bring out the highs and lows in equal measure. While many people assume that once an offer’s been accepted the sale is as good as done, the truth is that property sales can fall through at almost any stage before the contract is finally signed.
When a sale falls through, it’s not just frustrating – it can also mean lost time, wasted cash, and having to start all over again from scratch. So what are the most common reasons that sales go wrong? And more importantly, what can you do to avoid them?
In this guide, we’re going to take a look at the 15 most common reasons property sales fall through and give you some practical advice on how to stay on the right track.
1. The Buyer Can’t Get a Mortgage
Mortgage rejection is one of the most common reasons a property sale will fall through.
It might start with the buyer getting a Mortgage in Principle (MIP) agreement, but then hitting a brick wall when they don’t get a formal mortgage offer. This can happen if:
- They’ve got a dodgy credit history
- Their income or employment situation has changed
- They’ve got too many other debts
- The lender thinks they can’t afford it
- The valuation comes back and highlights some bigger issues
How to Avoid It
Buyers should definitely get that MIP in place before they start making offers. And in the meantime, let’s all avoid taking on any more credit commitments – that never ends well.
Sellers can also ask their estate agents to check that any would-be buyers are good to go financially.
2. The Property Survey Reveals Some Big Problems
Chances are you’ve been there – you think you know the property inside out, but then the survey comes back and you’re surprised by something major.
The usual suspects include subsidence, structural movement, damp and roof problems, to name a few. And if the fix is going to cost a pretty penny, it’s not hard to see why the buyer might decide to pull out.
How to Avoid It
Sellers should definitely get any known issues sorted out before they put the property on the market. Honesty really is the best policy here – being upfront about any problems can save a lot of hassle in the long run.
And buyers – get that survey done ASAP!
3. Problems Come Up in the Conveyancing Searches
Local authority, environmental, drainage and a load of other property searches can throw up all sorts of issues that might make a buyer think twice about a property.
Think – planned road schemes, flood risks, contaminated land and all that jazz.
How to Avoid It
Get yourself a good conveyancing solicitor who knows what they’re doing and can spot any problems before they become real deal-breakers.
4. Gazumping – When Sellers Accept a Rival Offer
Gazumping is when a seller accepts a higher offer from another buyer after they’ve already agreed to sell to someone else. Now, we know it’s not the seller’s fault – it’s the law in England and Wales that they can do this until the contract’s been exchanged. But for buyers, it can be really frustrating.
How to Avoid It
Buyers – get your solicitors on it quickly, arrange that survey pronto, and let’s all just get the whole thing done and dusted as quickly as possible.
5. Gazundering – When Buyers Try to Negotiate a Better Deal
Gazundering is basically the opposite of gazumping – when a buyer tries to renegotiate a lower price just before the contract’s due to be exchanged.
Now, it’s tempting to try to get a better deal, but for sellers, it can be really stressful.
How to Avoid It
Let’s all just stay in communication and try to make progress at a reasonable pace, eh?
6. Issues in the Property Chain
When there’s a chain of buyers and sellers, it’s always a bit of a risk that if one part of the chain falls over, they all might too.
Common problems include delays elsewhere, mortgage refusals, survey issues and changes of circumstances.
How to Avoid It
If you can, buying and selling a property without any other buyers or sellers in the chain can make things a lot simpler.
If you do have a chain, let’s all just keep in touch with each other and not get too stressed if things don’t happen exactly to plan.
7. Changes in Employment or Finances
Life can be unpredictable, and sometimes your finances might change in a way that affects your mortgage application or affordability.
How to Avoid It
If possible, try to avoid making any major changes to your finances until after you’ve completed the sale.
8. Property Valuation Issues
Mortgage lenders need to value the property before they’ll give you a mortgage. If they think it’s worth less than the agreed purchase price, you might find yourself with a bit of a shortfall.
How to Avoid It
Research local property values properly before you make an offer. And sellers – make sure you’re pricing the property realistically.
9. Conveyancing Delays
Conveyancing can be a slow and painful process, especially if you’re dealing with delay after delay.
Missing documents, slow responses, incomplete paperwork and delays getting information can all cause problems.
How to Avoid It
Pick yourself a good solicitor who’s on the ball, communicates regularly and responds quickly to any questions you may have.
10. Leasehold Complications
If you’re buying a leasehold property, it can be a bit more complicated.
Think – short leases, high service charges, ground rent issues and management company disputes.
How to Avoid It
Get someone who knows what they’re doing to guide you through the process – and be prepared for a few extra hoops to jump through!When Buying a New Home You Need to be Careful of Lease Terms – Get Specialist Advice if Necessary.
11. When Legal Issues Crop Up
Sometimes unexpected problems pop up during the conveyancing process.
Examples include:
- Disputes over where the boundary actually is
- Problems with rights of way that you’re not aware of
- Restrictive covenants that you didn’t know about
- Confusion over who actually owns the place
How to Keep it From Happening to You
Getting on top of potential issues early and making sure everyone knows about them before it’s too late can save a world of trouble.
12. Buyer or Seller Changes Their Mind
Not every failed transaction is because of something serious like a legal or financial problem.
Sometimes the buyer finds a different house that they like better – or the seller decides not to move after all.
How to Make it Less Likely
While you can’t eliminate it entirely, making sure everyone is 100% on board before you start can certainly help reduce the risk.
13. Communication Breakdowns
When things don’t get communicated properly, it can create a lot of uncertainty and frustration.
When buyers and sellers are kept in the dark, they may start to lose faith in the whole thing.
How to Keep it from Happening
Try to work with people who are good at keeping you up to date and who are easy to get hold of – even when things get a bit tricky.
14. Life Throws a Curveball
You can’t always predict when life is going to throw up a curveball.
Examples include:
- Sickness
- Divorce
- Death of a loved one
- Relationship breakdowns
- Family emergencies
How to Reduce the Impact
While some things are just out of your control, working efficiently can help you avoid getting caught out when unexpected things happen.
15. Trouble with Buying New Build Properties
Buying a new build can sometimes be a bit of a minefield – especially if things don’t get built on schedule.
These can include:
- Delays in the construction process
- Problems with the hand-over quality
- Changes to the completion date
- The mortgage offer runs out
How to Make it Easier
Just make sure your mortgage is sorted, and work with solicitors who are experts in new build conveyancing.
What’s the Real Story Behind Property Sales Falling Through?
It’s pretty common for property sales to fall through – and it’s not because of anything you did wrong.
Industry experts say that a pretty big chunk of agreed sales never actually get to completion. Which is why choosing the right people and keeping things moving is key.
The bit between the offer acceptance and exchange of contracts is usually where things go most wrong.
What to Do to Reduce the Risk of a Sale Falling Through
If you’re buying or selling a property – here are some tips to help you avoid disaster:
Sort out your mortgage approval early
Get a good conveyancing solicitor on board straight away
Reply quickly to requests for information
Be upfront about any issues with the property
Get a survey done promptly
Keep in regular touch with all parties involved
Avoid any unnecessary delays
Keep your finances stable until completion
Work with experts who know what they are doing
A Few Final Thoughts
Buying or selling a property is a big deal – it involves lots of different people, loads of paperwork, checking the finances, and meeting deadlines. While you can’t control everything, a lot of what can go wrong can actually be prevented if you’re prepared and work with the right people.
If you spot potential issues early on, you can start taking steps to keep things on track and avoid any costly setbacks.
Need Help With Your Property Move
At My Conveyancing Specialist, we know just how frustrating it is when property sales go wrong or get delayed.
Our experienced conveyancing solicitors will keep a close eye out for any potential issues, keep you informed every step of the way, and help you get through the process as smoothly as possible.
Whether you’re a first-time buyer, moving home, or a property investor, our team is here to support you every step of the way.
Get in touch for a no-obligation quote and let us help you make your move as stress-free as possible.