Buying and selling a property involves a lot of things. This process can be smooth sometimes and tedious the other time. However, one of the biggest challenges is faced when the sales fall through. Sales fall through is a condition where either the buyer or seller withdraws himself from the previously agreed deal and there are no chances of the sale now.
This brings in many problems and questions. Estate agents in Lee below discuss some of the major reasons responsible for a fall through of a property sale. Also, they discuss whether or not you need to pay an estate agent in such a situation.
Mortgage Valuation is not satisfactory.
When a buyer applies for a house loan, the lending company does an independent valuation of the property. If the lending company finds that the actual worth of the property is less than the agreed selling price they can refuse to pay the extra amount. Where this is an opportunity for the buyer to negotiate with the seller, the seller can also call off the deal if they don’t want to settle for low. In this case, the seller can agree to some negotiations or the buyer can apply somewhere else for a loan.
The loan offer is about to end.
Whenever a buyer takes a mortgage loan, the lending firm makes an offer and also has an expiry date for this offer. If the sale is delayed due to any complications there are chances that the loan offer expires. However, the buyer can request and extend the expiry date after clearly stating the complications to the lender. It is advised, that sellers also check the financial background of the buyer before discussing the sale further.
Sales dependent on another sale can be troublesome.
There are high chances that one sale is dependent on the other. This means a seller who is selling his house might be involved in buying another property somewhere else. There is a high probability that the seller is dependent on the amount he will get by selling his property and later on using it to buy another one. This sales chain keeps going and if one deal gets cancelled or delayed, it impacts the other deals as well. This can be troublesome.
The seller withdraws for another offer.
One of the other common reasons for a sales fall through is when a seller accepts an offer from another buyer even after involving himself with one buyer. This condition arises when the seller is getting a higher price for his property than what he is getting from his current deal. Although, there is not much that a buyer can do in this situation but they can request and ask the seller to remove the property from the market so that it is not available for another buyer.
The above discussed were some of the common reasons why sales can fall through. But not what comes next is what happens to the payment of the estate agent in such a condition. Continue reading to find out.
Do you need to pay an estate agent if the sales fall through?
Most of the time the buying and selling of property happen via an estate agent. While the estate agent gets their share of payment once the deal happens the problem arises when the sales fall through.
There can be multiple options and answers to this. But, in most situations, the estate agent can ask for the commission or some of the payment for doing his task.
Another alternative to this can be opting for an estate agent who works on a sale no fees basis. A survey conducted by Movies, says that estate agents can crack only 50% of the property deals. So to save yourself from paying an estate agent if there is no sale you can approach an agent who charges only if the sale happens.
Property deals are a source of income for estate agents. Any reason affecting the sale or a situation where the sales fall through has a direct impact on their income. However, since estate agents ease up the entire process of property deals it is important for both the buying and selling parties to be clear on their decisions before approaching an estate agent so that neither of the three has to suffer in the end.