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Quick Move Blog

Wednesday, 7 January 2009

Quick Move Now and Chain Breaks

Broken Chains

What is a sale chain?
• Most house sales will involve a sales chain
• This is because most people have to sell their home in order to buy another house
• This creates a chain of related sales/purchases
• First time buyers normally form the base of a chain
• Sale chains can involve 3 to 10+ transactions

How does a chain break?
If any link fails the whole chain collapses.
So a problem with just one sale could jeopardise 10+ other transactions

Why do sales abort?
A sale can fall through for a variety of reasons:
• Unable to secure mortgage/finance
• Adverse survey
• Change of circumstances e.g. redundancy
• Find another property
• Change their mind about buying

How common are chain break situations?
Unfortunately chain breaks are very common.

Although exact figures are difficult to estimate Quick Move Now produces a monthly fall through index or FTI based on its property sales.

This index shows that at least 40% of sales abort before completion.

Many more chains don’t even get off the ground so the true rate of chain breaks is likely to be much higher in the general market.

It is likely that most home sellers currently face a 50:50 chance of their sale going through to completion.

How to fix a broken chain
To repair a chain the property that has lost buyer needs to be resold.

In current market conditions it is very difficult to resurrect a broken sale chain as buyers are so few and far between. Generally everyone will lose out and will have to start marketing from scratch.

There is however another option as Quick Move Now offers a chain break solution that can step in and buy the broken link and so resurrect the whole chain.

More information about how to sell your house quickly can be found by visiting www.quickmovenow.com.