What are the chances of a house sale falling through?
- Approximately one fifth (19.82%) of house sales fell through in Q4 2012
- Fall through rate fell sharply from 27.21% in Q3
- This is due to buyer and estate agent behaviour
Quick Move Now provides one-of-its-kind data to property analysts to help with assessment of the housing market.
The average house sale fall through rate for Q4 2012 was 19.82%, meaning one in five sales failed to reach completion, a marked improvement on Q3 when one in three sales fell through.
Following on from a very slight downward trend in house sale fall through rates since the start of 2010, quarter four of 2012 showed a dramatic drop of 7.39%, down from 27.21% in Q3, taking the index down to its lowest level since 2007.
Donna Houguez, Market Analyst at Quick Move Now, comments:
Over the past two years, we’ve seen an increase in buyer realism slowly reducing the fall through rate – buyers are less likely now than in the past to submit offers without being reasonably sure that they either have the cash readily available, or have an agreement in principle on a mortgage.
Alongside this, and probably the main factor responsible for the sharp fall in Q4, is the fact that we are now seeing estate agents rigorously evaluating the likelihood of an offer being successful before passing it to the vendor, reducing the risk of sales falling through.
While, with the transaction level still at close to half of that in 2007, this does not herald the end of the housing market slow-down, it is at least some positive news for those trying to sell their house.
Data Calculation: Quick Move Now sells hundreds of properties each year and the fall through statistics are calculated month-on-month 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.
Company Information: Quick Move Now is the UK’s leading home buyer, offering a quick, secure and hassle-free house sale. Our experienced team, efficient processes and substantial cash reserves allow us to make immediate purchases, enabling customers to sell their houses quickly and move on with their lives.