Just one in five house sales fell through in the first quarter of 2016, according to new research.
The findings from the home buying firm show a house sale fall through rate of 20% for Q1 of 2016, down from the 27.94% recorded in the final quarter of 2015.
The fall-through rate for 2015 as a whole remained fairly consistent, at roughly 29%, and that is expected to continue for the coming year as well.
The major reasons why house sales fell through in the first quarter of 2016 were either the seller withdrawing from a sale to achieve a higher offer (25%) or the buyer or seller pulling out because they didn’t believe the sales process was progressing at a fast enough pace (also 25%).
Other reasons for a sale falling through were the buyer having a change of heart (18%), the buyer being denied a mortgage by a mortgage provider (12.5%), a chain collapse (6%), survey issues (6%) and a buyer wanting to renegotiate after the original offer had been accepted (6%).
The drop in the number of sales failing to complete is good news for sellers, of course, with fewer fall-throughs making the chances of your own sale collapsing that much lower. One in five sales falling through before completion is still much too high, but it could be a lot worse.
It’s also a sign that the sellers’ market is performing strongly, with demand continuing to outstrip supply in nearly all areas.
This means that sellers will have a significant pool of potential buyers vying for their property, thus increasing your chances of achieving your asking price or above.
Low supply and high demand also puts sellers in a good position when it comes to negotiating.
Buyers are likely to act more quickly to secure a property, given the competitiveness of the market, which means that delays and dilly-dallying on a decision will be reduced.
The number of buyers getting cold feet might also reduce, knowing that if they don’t act decisively another buyer will step in to take advantage.
As a seller, you need to make sure your property stands out from the competition. A solid marketing strategy and an excellent online presence will help in this regard – the reach of portals such as Rightmove and Zoopla is really quite staggering – as will being prepared for viewing at the drop of the hat.
If you can be flexible and adaptable throughout the sales process, buyers are bound to appreciate this and the chances of a sale falling through become even lower.
After all, a fluid sales process relies on a good relationship and mutual trust between buyer and seller.