According to research, a quarter of house sales fell through in 2019, showing just how common this problem is for sellers. The top reason that sales fell through was due to the buyer changing their mind, which can be down to a number of factors such as their own house sale falling through. Other reasons could be related to information that came up on the survey, failure to get their mortgage agreed, changes in personal circumstances or another property coming onto the market that suits them better.
If you have appointed an estate agent, they should be able to tell you why the buyer has decided to pull out of the purchase. It may be that there is a simple solution that can be negotiated, for example, if required repairs were outlined in the survey, an agreement could be to reduce the asking price to cover the cost of the repairs. You will have to consider whether you are prepared to drop the asking price to ensure that the deal goes through or put the house back up for sale.
If you find yourself in the position where the sale of your property has fallen through, it can be very disappointing, especially if you have found the home you want to buy and are reliant on the sale going through to progress with the buy. It is important to understand that the purchase of a property is not legally binding until the exchange of contracts. Therefore, before this stage, you should try to be prepared for the possibility of a buyer pulling out. If a buyer pulls out after the exchange of contracts, then you can sue them for your financial losses.
Can I still buy my new property?
There are still a few options available if your house sale falls through and you have your heart set on a property that you don’t want to miss out on. Firstly, you can put the house straight back on the market and anyone that had been interested in your property before you accepted the offer could come back with an offer. You will have to negotiate with the seller to see whether they are prepared to give you some more time to sell the property.
Another option is to take out a bridging loan which would enable you to buy your new property whilst you sell your own property but this can be a complicated process, so you should seek the advice of a professional to make sure you only take this option if it is not too risky. The risk is that you could end up paying a lot of interest whilst your property is still on the market for a long period.
House sales falling through can cause you huge problems but if you work with an expert conveyancing solicitor such as Hill and Company, you may be able to prevent the sale from falling through, or quickly find a solution. Book an appointment with our conveyancing team today to see how we can help you.