by Mark Johnston
House Sale Fall Throughs…..
It appears that one of the most worrying elements of buying and selling a house is the concern that the whole thing might fall through.
A sales fall through can be very frustrating when a seller thinks they are well on the road to moving and then their hopes are dashed. This is particularly annoying when it happens at the last minute!
A house sale fall though can be dependent on the numbers of buyers in a chain. Current statistics show that when there are three buyers in a chain, only 40 per cent of sales reach completion. If there are four buyers, only 14 per cent of sales complete.
Some reports now suggest that the housing market has gotten back on track somewhat and many home owners are now planning to sell property in the hope that they can gain more profit.
However, it is still not exactly a seller’s market yet because there are plenty of factors that can affect a house sale to fall through. From issues with appraisals, to title issues to even buyer’s going back on a sale, a house is not sold until the deeds are exchanged and the buyer gets the keys to the door.
This said for the first time in nearly two years it seems that the percentage of house sales falling through before completion has dropped significantly.
In 2012 just over 23 per cent of house sales fell through in the period between July and September, a drop of more than six per cent over the previous three months.
Data has revealed that house sale fall through rates have been a steadily decreasing since July 2008.
Donna Houguez, market analyst at Quickmovenow.com , said “We are seeing a change in the structure of the buyers attempting to purchase property. No longer are people putting in an offer on a house and crossing their fingers in the hope that a mortgage will be approved. Instead, they are doing their homework beforehand, being more realistic about the amount that banks will lend and securing approvals in concept.”
More recent figures reveal that the average house sale fall through rate for the three month period between April and June this year was around 19.77 per cent, almost exactly 10 per cent lower than in the corresponding quarter in 2012.
Many experts feel that increasing market confidence following tentative signs of an economic recovery, rising transaction levels and prices, and the introduction of the Government and Bank of England backed Funding for Lending and Help to Buy schemes could be expected to further improve the fall through rate
Other industry experts believe that fall through rates have also improved due to an increase in the proportion of cash buyers and offers only being accepted if they are accompanied by mortgage approval in principle.
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