What To Do When A House Chain Collapses
Estimated reading time 6 minutes
Just when you think the sale of your home will finally go through, the property chain breaks. This is a common problem that hits about one-third of all home sales. If you find yourself in this situation, don’t despair.
We’ve created this guide to show you what to do when the property chain collapses. It’s still possible to sell your house fast.
Property Chain Problems are Common
When you’re part of a long chain of buyers and sellers, there’s a very good chance something will cause the chain to break. When that happens, you’ll have to start all over again. Remember, the longer the chain, the higher the risk.
Why Do Chains Break?
There are many reasons a property chain breaks, including:
- Someone in the chain may reconsider making a move, deciding they’re better in their current property.
- A home buyer may find problems arranging financing.
- The selling may decide to sell to a buyer willing to pay a higher price. Or a buyer in the chain may decide to reduce their offer at the last minute.
- A failed survey can mean the chain breaks; when this happens, the problems must be fixed before the property can be sold. The buyer may decide to look elsewhere as a result.
- Life events can happen at any time; these may include divorce, death, and more.
Sometimes there’s no help for it—a property chain will break, making the sale fall through. It’s a part of the real estate buying & selling process. And remember, the longer the chain, the more stressed it can become. This can lead to a break.
To manage your part of the chain, always be honest with your lender. In fact, having a mortgage in principle before you start the search for property is recommended. This way, you know for certain the mortgage offer can be counted on. This means it won’t hold up the chain.
And knowing the amount you can afford to spend also can lower the risk the property chain will break.
A Broken House Chain is Frustrating & More
When a house chain breaks, it may not be your fault. After spending months on getting everything in order, the chain breaks through no fault of your own. Because you weren’t the reason for the break, the frustration and stress levels you feel may be considerable.
Another problem you may have to deal with is financial issues caused by the property chain break. These can include fees paid out, which are non-refundable (including the mortgage arrangement & booking fees). You may have also covered the cost of a solicitor conducting a survey, which also requires fees.
The entire process can be frustrating. Even so, don’t give up.
Prepare for a Break in the Property Chain
There are a few things you can do to help the chain, but remember, you may not be able to keep the chain from breaking. The following tips can help prepare you in case of a break in the property chain.
Check-in regularly with estate agents: this way, you may learn about a problem or that there’s something you need to take care of. Not all estate agents will let you know right away when there’s a problem.
Stay organised & informed: stay in compliance with the process. This means staying organised, taking care of issues as soon as they arise, and staying in touch with estate agents. This is what you can do to help manage the chain and save time.
Communication: it all comes down to excellent communication. Staying in communication with the agency managing the sale is crucial. Otherwise, you may not learn about problems that could cause the property chain to break. Be honest and clear about your property’s condition and issues that may come up during the survey.
Keep accurate records: this is another way to stay organised and keep the chain moving (not always, but it can help). Keep dated records of what happens. This may mean keeping notes on phone conversations. In addition, stay up to date with all paperwork. Sign and return all papers as soon as possible. Putting this off could cause a delay or even a break in the chain. And make sure the documents are returned on time. Don’t cause delays. Also, keep a list of estate agents and others working with you, along with their contact information. And keep all correspondence, even emails. You can save these digitally or in a storage box. Choose a method that works for you, and then stick with it.
Remember, you can’t manage other parts of the property chain. It’s possible one of these parts could lead to a breakdown in the chain. However, doing what you can to manage your portion of the chain may be what keeps the entire thing from breaking in the first place. So, be responsible, and take care of issues quickly if they arise.
What if the House Sale Falls Through?
This is the last thing you want to happen, but it can happen. So, it’s best to be prepared. First, you need to not panic. You still have some options to consider, even if the property chain breaks.
Instead of panicking or becoming upset, do these things:
- Contact the estate agents
- Let everyone know what’s happened—these would be other people in the chain and those handling the sale.
- If there’s a problem with the asking price, consider reaching out to the buyer who has dropped out. You may be able to reach a compromise that will keep the chain moving forward.
Summing It Up
In the end, there’s only so much you can do. Staying organised, in communication, and doing your part can keep your part of the chain strong. However, it can happen that the property chain breaks.
If this happens, and you need to sell your home quickly, then be sure to contact a quick sale/cash buyer estate agent like us!
By choosing our services, you won’t have to worry about hidden or upfront fees or commission. We’ll even pay your legal fees. We offer a hassle-free service and a 24-hour listing. Before you know it, your home will be sold, and you’ll have cash in the bank! We can sell your home in under 30 days!
Contact us today for more information on how we can help sell your home for cash fast. We’re looking forward to working with you!