Nothing's more disappointing than thinking your home sale is all going through well, only to have it crumble in the final stages of the process. According to research carried out in 2016 by Which?, almost 30% of home sales in the UK fall through. In real terms, this would mean that of the 1.09 million property transactions that took place between January 2016 and December 2016, over 305,200 of them did not complete.
This is one of the things we’re passionate about improving here at Settled and we’re delighted to say that, with Settled’s approach to buying and selling, 86% of our homes complete without falling through - that's a 30% improvement.
The main reasons home sales fall through are:
This is the single biggest reason why home sales fall through and so here at Settled we're finding ways to reduce the chance of this happening. When buyers are interested in Settled’s homes we don’t just take their name and organise an appointment with the homeowner, we register each person, taking down the crucial information about their situation that allows us to determine they’re a serious potential buyer.
When selling a home through a traditional high street agent, the agent tends to like to manage all the communication between the buyer and seller. This can mean a lot of back and forth between the different sides and can sometimes make it feel like things are taking a lot longer than they should.
In order to improve this, Settled connects buyers and sellers, opening a channel of communication which makes for a more transparent, refreshing way of doing things. Instead of waiting for a middleman, buyers and sellers can have open conversations about the property and their preferences. We see this as the future of buying and selling - and how it should be really. Our dedicated team is always there (in fact we’re available 24 hours a day!) to help with any questions or queries, but with the addition of an open avenue to the buyer, everything goes more smoothly.
Despite a seller accepting a buyer’s offer, nothing is official until both parties sign and exchange contracts, which as we all know can take many weeks of back and forth with solicitors. Luckily with Settled, the fact that buyers and sellers meet and form a relationship means that the likelihood of this happening is extremely low.
Being part of a chain can prolong the transaction - as one homeowner waits on another to find a buyer and so forth. Depending on how quickly the buyer needs to move home they may not be able to wait the months it can sometimes take and occasionally decide to pull out.
Despite the fact that all buyers should be screened before being introduced to the home of interest, ensuring they have the funds needed or a mortgage agreed with a bank in principle, it’s still possible that their financing could fall apart at a later stage. This can be due to a change in their employment or financial circumstances and means that their preapproved finance is later denied.
When you decide to put your home on the market, you want to be confident that you're entrusting it to the right estate agent or property company that cannot only bring you a number of interested buyers and provide professional support throughout the process, but also have measures in place that prevent some of the above factors happening in the first place.
Here at Settled, we believe that the homeowner is the key to a good sale which is why we empower you to make the key decisions about your sale. Once we’ve qualified potential buyers you get to meet them face to face and show them around your home, giving you the opportunity to gauge their interest and also build a relationship with them so that if you do accept their offer, the process is guaranteed to run much more smoothly.
Thanks to this method of connecting buyers and sellers we’ve seen a great impact on our fall through rates and 86% of our home sales go through to completion. If you remember from earlier that the industry average for completion is only 66% - this is a huge improvement and one we’re really proud of. Our customers get to have open, honest conversations which ultimately manifest into mutual trust, making it much more likely that each party will stick to their word once they have agreed on a price. As a result, moving becomes much easier for everyone.
If you have any questions or are looking to sell your home, you can find out more about Settled here. Alternatively, call us on 0203 322 8417 - we'd love to hear from you.