Buying and selling homes is one of the most stressful milestones for any family. Whether you’re upgrading to a house with more bedrooms or downsizing to simplify life or ease your financial situation, the process is not without its frustrations and uncertainties.
One of the biggest hurdles you may face is dealing with a broken property chain. This occurs when your sale or purchase is delayed or falls through because someone else in the chain pulls out.
If you fear that you could be in this situation sometime soon, don’t panic! There are ways to keep the transaction moving. Below, we’ll fill you in on how to approach this clearly and why cash buyers could be the superheroes your family have been waiting for.
What is a property chain?
If the completion of your sale or purchase is reliant on other homeowners completing their sales or purchases, this is a property chain. For instance, you could be waiting for your buyer to sell their home first. Alternatively, your seller could also be waiting to complete the purchase of their next property.\
Dealing with property chains is a delicate balance. Everyone knows that one tiny hiccup, such as a buyer getting cold feet or a mortgage being refused, can cause an entire chain to collapse. It’s a potential problem that can turn your entire world upside down, especially when you’re ready to move on to that next exciting chapter.
If the worst happens, take a step back first
If you find out from your estate agent that your chain has collapsed, your natural reaction will be to panic and start worrying. That’s okay! But you need to bounce back quickly and think with a clear head about your situation.
Relax, grab a drink, and find out what caused the issue. Can it be remedied? If your buyer was refused a mortgage, could they pursue an application with another lender? If a survey uncovers essential repairs to your buyer’s property, are they prepared to address them? Communication is key – try to be as flexible as possible.
Consider cash buyers instead
If the worst happens and your potential buyer falls through, instead of re-listing, it may be quicker to consider cash buyer services. These “sell my house” platforms can be a godsend for families in sticky situations with their chains. There’s no mortgage process involved, since they’ve got the funds to buy your property outright. Cash buyers are always chain-free, too, so there’s no threat of them backing out over financing issues or complications surrounding surveys. Best of all, they’ll usually buy properties of any condition or age to help keep you moving.
How to guard against future chain fiascos
If you’re not yet in a position to move home, but want to avoid any potential property chain pitfalls, we’ve got a few tips to help you avoid falling foul of such scenarios. Prioritise selling to buyers who are pre-approved for their mortgages. This means they’ll have already obtained an “agreement in principle” with their chosen lender.
Make sure you get your own ducks in a row first. Prepare all of your necessary paperwork so that you can respond quickly to requests from estate agents or solicitors. When you’re purchasing a property, consider buying a chain-free home to minimise the potential risk.
Broken property chains aren’t always the disasters they’re made out to be. With a clear head and some smart choices, you can get your move back on track and inch closer to your family’s next wonderful chapter.