Swarovski - The Magic of Crystal

Property Sales Problems

There are a number of steps to moving house so it's not surprising that property sales problems can arise along the way. Planning, putting the right decisions into action and communicating with your buyer and vendor at every step can help things move along smoothly. Here's an overview of the most common issues that arise and tips on how to deal with them.

No viewings

If you're selling with an agent, ask them why they think you've had no viewings. Find out how many enquiries they've had about your property and how many sets of property details they've sent out. Ask the agent what the market's like - have viewings been slow generally for example? Where has your property been advertised and how often? It might be worth calling the agent and posing as a potential buyer or get a friend to call to see if they mention your property.

No offers

If you've had plenty of viewings and you haven't sold your property within 8 weeks then there's likely to be a problem with your valuation or the presentation of your property. With a few simple changes such as tidying clutter, giving your home a lick of paint and presenting it in the right way, buyers will see your home in its best light. Finally, if you're in a hurry to sell, consider lowering your asking price. Find out what prices are doing in your area and what sort of reduction you'd need to make.

Slow progress

Some buyers put in an offer on a property in a very casual manner rather than making it a serious commitment to buy, so find out up front if they have a mortgage in place. Also ask about their moving status, i.e. they have a property to sell, if their purchase is reliant on a sale, or if their home is under offer. Communication with your agent is also key to keeping track of how the chain is progressing.

Contracts aren't exchanged

If there is a delay in exchanging contracts, ask your conveyance solicitor why? If the buyer is holding things up or is having problems raising the funds, give them a deadline to work to, after which you'll put your property back on the market. You can also ask your solicitor to speed things up by delivering important documents by hand or at least securely by registered post.

You change estate agents

You may find that you're not happy with your agent and you want to try another firm. If you decide to change, you'll need to give the appropriate notice period (as outlined in your contract) and wait until the contracts ended before instructing a new one to avoid paying double commission.
 

Buyer may reduce offer or withdraw from sale

Accepting an offer is just the start. A buyer may choose to reduce his/her offer later down the line or even pull out of a sale for a number of reasons. The main issues are normally:

A poor survey

If the survey highlights problems with your property, the buyer may decide to negotiate the price down to compensate for any costs associated with work he/she will need to do. Get hold of a copy of the relevant issues that have been flagged up and consider getting the work done yourself (you may be able to do this more cost effectively). You can avoid any potential problems by tackling any major repairs that are likely to be picked up before you put your home on the market.

Undervaluation

There may be a difference in the amount offered on the property versus what the mortgage lender survey thinks it is worth. This can affect the mortgage offer, or make buyers think they're paying over the odds for your home. The valuation will come down to the surveyor himself and can vary from one individual to another so it could just be bad luck. If you are confident your property is worth more than the surveyor's valuation, having done comprehensive research yourself, challenge them.

Caught in a chain

A chain is made up of a series of buyers and sellers who are all reliant on each other's sales. Property chains can be enough to put buyers off for fear of experiencing delays and stress. The length of the chain has a big impact, so the shorter it is, the better. With a typical 7 buyers/sellers involved, plus all the associated professionals working on their behalf such as agents and solicitors, it only takes one person's oversight, such as a lost document, and the whole chain can be delayed.

Property chains can be a real headache so if you can avoid them, do so! Here are some tips:

  • Think about buying off plan from a developer and offering your home as part exchange
  • Sell your property first and organise temporary accommodation until you find your next home
  • Be choosy about your buyers – cash buyers or buyers who are in rented accommodation and are ready to move for example will be much more straightforward to deal with
  • Opt yourself for a property that's vacant or that you know has a short chain above
  • Agree a move-in date early on with your vendor and buyer so everyone knows what they're working to

The buyer is unable to fund the purchase

This is quite a common problem, but avoidable. Before you accept the buyer's offer and take your property off the market, get the agent to ask whether they have a Mortgage Agreement in Principle in place. If it's too late and you're in this position already, you'd be quite justified to withdraw from the sale and put your house back on the market.

Property prices start falling

If your buyer catches wind of property prices falling, they may get nervous and think that they're paying too much, especially if there's a long period between the offer and exchanging contracts. Now Home Information Packs (HIPS) have been made compulsory, this should speed up the whole moving process, as much of the conveyancing work will already be complete.

Stamp Duty and Land Tax

Some property buyers aren't aware of how much Stamp Duty they will have to pay when they purchase a property. The tax is structured in bands according to the property price (if you're buying a property in an area designated by the government as 'disadvantaged', you don't pay any Stamp Duty land tax if the purchase price is £150,000 or less):

  • Less than £125,000 = 0%
  • £125,001-£250,000 = 1%
  • £250,001-£500,000 = 3%
  • Over £500,001 = 4%

If the price agreed on your property just falls into the next band up, consider lowering the price and therefore the tax to avoid the purchase falling through.

Fixtures and Fittings

Bearing in mind that the value of fixtures and fittings is a drop in the ocean compared to the hundreds of thousands of pounds that your buyer is paying for your property, it's hard to believe that arguments over fixtures and fittings can result in a property sale falling through.

If you are particularly attached to certain 'fixed' items such as those designer light switches you fitted, which buyers would rightly expect to be left behind, let them know beforehand that you plan to take them and that you will replace them. Don't always assume that you can take items which aren't fixed either. Check what you can take and agree with the buyer if there are particular items you want to remove. Kitchen appliances are often an integral part of a fitted kitchen and buyers expect these to be left behind as part of the purchase. However, it's more acceptable to negotiate over freestanding items such as American fridges.