Real Estate

How to Deal with Common Property Chain Problems

How to Deal with Common Property Chain Problems.

Many estate consultants and agents reported how fragile the property chain can be. Every member’s action is capable of imparting the chain positively or negatively. Whether you are a real estate buyer, seller, or among those coordinating the sale, you can find yourself in the Property chain any time. Trust us, it can throw a few challenges your way.

You don’t have to worry. This article explains the property chain that exists in the real estate niche and how to deal with the common problems.

Property Chain Meaning

A property chain is an existing link between buyers and sellers of any property. For example, if you want to buy a home, there’s a pretty good chance the seller wants to buy another property with the sale proceeds. What’s more, you may also be selling your current home to buy a new one. Essentially, this scenario, where the successful sale of a home is dependent on the success of another home sale is what is called a property chain.

Common Problems When the Property Chain is Involved

The problems that come up in a property chain often lead to the collapse or breakdown of the chain. It usually leads to loss of money for the members of the chain, ranging from, solicitor’s fee to survey fee, search fee, mortgage arrangement, booking charge, lender’s valuation fee, and so on. The following are some of the problems that can lead to the collapse of a chain

  • Failed Mortgage Application

This issue has become increasingly rampant after stricter lending criteria came into effect. Once the buyers in a chain cannot gain access to the financial resources needed to complete their purchase, the house sale becomes impossible. The result renders other transactions depending on it impossible as well.

If you are looking to get an urgent short-term loan to fund your next property before you sell your existing property, Finbri might be a good option as they not only offer support but have a competitive rate from 0.44% per month.

  • Survey Report

Not all property buyers employ the services of a home surveyor before buying a house. However, when they do, the result could impair the buyer’s decision, especially when significant problems are revealed in the report about the house.

  • Seller’s/Buyer’s Change of Mind

Some sellers suddenly decide their property is no longer for sale. The same goes for some buyers who probably after an unforeseen, new development decide not to opt for a new home.

How to Deal with the Common Property Chain Problems

  • Don’t enter a chain in the first place: as a seller, you can look for chain-free buyers, e.g., first-time buyers, i.e., buyers that aren’t waiting to sell a property before they can buy yours.
  • Sell and Rent Instead of Looking to Buy Immediately: If you are both a buyer and seller in the chain, i.e., selling your property because you want to buy another immediately, it could get you stuck in the chain waiting for a seller that may be presented with an offer better than yours.
  • However, if you sell and opt for a rented place before looking at a new property, you can make yourself a chain-free, attractive buyer to prospective sellers.
  • Consider New-Build Homes: One of the advantages of this option is that new home developers offer a part-exchange scheme. This is a scenario where the developers purchase your existing home and deduct the value from the price of the new home you are interested in.

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