More than one in three house sales fell through between April and June
More than one in three house sales in the second quarter failed to reach completion, according to data released today by leading home buyer Quick Move Now.
Figures indicate a house sale fall through rate of 36.34% for Q2 of 2015, a rise of over 13.5% from the reported 22.76% in Q1.
Quick Move Now also released figures for the 6 month average fall through, which offers a greater overview of how the property market is performing generally, allowing for seasonal peaks and troughs. At the end of Q1 the 6 month average fall through rate sat at 24.77 per cent, and by the end of Q2 it had risen to 28.44%. Year-on-year figures also show a rise, with an increase of 1.31 per cent between the 6 month average fall through rate at the end of Q2 2014 and the end of Q2 2015. Danny Luke, Managing Director at Quick Move Now, commented:
As the property market becomes more buoyant and an increasing number of properties become available, both sides of a property sale feel they have options if the sale is not progressing as quickly or as well as they had hoped.
Buyers are less likely to move forward with a purchase if the survey brings up surprises, and sellers are less willing to drop the price in a renegotiation, confident that they’ll be able to find another buyer fairly easily.
We carry out a substantial amount of research into the reasoning behind the fall through rate.
Across the last six months, 22% of home sales that fell through did so as a result of the buyer changing their mind, 16% fell through as a result of the buyer being refused lending, 13% fell through due to slow sale progress and a further 13 % fell through due to a higher offer coming in.
8.7% of the house sales that failed to reach completion did so after the buyer attempted to renegotiate, 6 % fell foul to issues that were highlighted during a survey, 5.8% failed to successfully complete due to a change in the buyer’s circumstances, and a further 5.8% fell through due to a chain breakdown. 4% failed to complete because the buyer decided to buy a different property, 3% broke down due to lease issues and the remaining 3% failed to complete as a result of legal complications.
In recent months a lot of customers have come to Quick Move Now because they’ve found their dream property and they fear that waiting to sell their property on the open market will mean they miss out on the property to someone who is in a more proceedable position.
By offering them a quick and guaranteed cash purchase we free them up to move forward with their onward purchase. We are also able to date the purchase to tie in with an onward purchase, so our customers don’t have to worry that dates will not tie up if there’s a hold up on the sellers end.
Data Calculation: Quick Move Now buys and sells hundreds of properties each year and the fall through statistics are calculated month-on-month, quarterly and using a six-month average. In reality, the fall through rate for homeowners would be approximately 10-15% higher as Quick Move Now has a professional resale team proactively managing the completion process.