The impact of the COVID-19 pandemic on the housing market has been significant. When the sector went into lockdown in March, it is believed around 370,000 property deals were placed on hold.
When the industry re-opened in May, there was considerable activity and a lot of the deals which were paused were concluded. Of course, many deals would have collapsed or not resurrected.
The costs of a collapsed property deal have been cited as £2,700 for every vendor. As an estimated 225,000 property deals collapse annually, this is a cost of £607.5m each year.
The study was undertaken by BreezeMove, and it highlighted some of the most common reasons for property deals collapsing, which include:
- The buyer changing their mind, cited by 34% of respondents
- The vendor pulling out of the deal because of the speed of the process, which was said by 15% of respondents
- Gazumping, which was said by 10% of respondents
At Stones Residential, we think one of the most effective ways to minimise the risk of a collapsed property deal is to call on the services of skilled and experienced professionals. We are pleased to say we have helped many local vendors and buyers in Stanmore, and we look forward to assisting you.
The founder of BreezeMove, Phil Melia, said; “As a nation, we’re obsessed with property and so the fact we still rely on such an archaic, protracted property selling process is a little mind-boggling really. There are currently a whole host of reasons that a property sale can fall through and while the long-term goal is to provide greater security for those transacting so that this can’t happen, reducing the number of current fall throughs in the short-term can help save home sellers a substantial amount of money.”
Phil continued by saying; “We believe a realistic and achievable goal is to reduce this annual rate of fall throughs by 10% by next year and if we can achieve even this small victory for UK home sellers, we could see a considerable saving.”
Be proactive and minimise the risk of property deals collapsing
Stones Residential believes there are steps you can take to minimise risk when involved with a property deal. Please consider the following tips:
- Work closely with your estate agent as you progress
- Review all offers you receive and consider the conditions around the offer, and that the highest offer may not be the best offer
- Make sure you stay in touch with your solicitor
- If you have any questions, please ask
- Ensure your home is decluttered and presented in the best possible manner
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.
