Unless there is a late change to the stamp duty holiday process, many homebuyers run the risk of missing out on a significant saving when buying property.
For some buyers, this will see them decide against buying a property. This means many property deals could be at risk, devastating vendors. Also, when you consider the impact of the property chain, many deals could be affected, even if the buyer and vendor aren’t directly affected.
As of February 2021, Rightmove says the following about house prices in the London borough of Harrow:
“Properties in Harrow had an overall average price of £541,035 over the last year.
The majority of sales in Harrow during the last year were semi-detached properties, selling for an average price of £582,241. Flats sold for an average of £341,937, with terraced properties fetching £511,094.
Overall, sold prices in Harrow over the last year were 9% up on the previous year and 2% up on the 2017 peak of £528,202.”
With the average price of property in Harrow standing above the threshold for the stamp duty holiday, buyers have been saving £15,000 when buying a home in the local area.
If you are a buyer who has budgeted for this saving, missing out on it might have a significant impact on your property plans.
There are many reasons why a property deal might collapse, including:
Gazumping leads to a deal collapsing
Gazumping is an issue, and if the vendor accepts a higher offer from another buyer, even after they have accepted an offer from the first buyer, that deal collapses, and the first buyer will likely feel aggrieved.
An issue with the mortgage
If a mortgage offer expires before the buyer is able to conclude the deal or the mortgage offer is altered because of a change in buyer circumstances, it is not uncommon for a deal to collapse. It might also be that the mortgage lender values the property at a level lower than the buyer has agreed to pay for the property, and this can also lead to the sale collapsing.
Issues found in the survey
One of the reasons buyers arrange a property survey when purchasing a home is to make sure the property is in good condition. If a survey reveals a problem, the buyer has to think about whether they should conclude the deal. In some cases, the buyer will proceed, and they might look to arrange a discount.
However, there will be times when the buyer decides to walk away from the property deal.
Conveyancing delays are an issue
Buying a home is a legal matter, and there is a lot of work involved in ensuring the deal can conclude. If a delay occurs, some buyers lose patience or decide that they don’t want the deal to continue. Therefore, conveyancing delays are often a key factor in deals collapsing.
Broken chains cause delays to break down
If you know anything about the property market, you know the risks associated with property deals. In many cases, there is no issue with the buyer or seller directly, but because another deal that is connected to theirs collapses, the deal falls through.
Silas J. Lees MRICS, WiggyWam CEO, says: “Agents don’t get paid until a sale completes, so these fall-through statistics hide within them a vast unseen cost for agents. Aborted sales can be disastrous to the agent pipeline and in meeting monthly overheads. For buyers and sellers, the risk of a transaction falling through, together with the associated abortive costs, is a major obstacle which stops many from moving in the first place. For agents, it is probably their biggest frustration, especially when the deal is so close to exchanging contracts.”
Silas continued by saying; “There needs to be a push in the market; a move towards more transparent and efficient processes. It’s the only way for fall-through rates to significantly drop.”
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.