The housing chain – an overview

Buying a new house should be a pleasurable experience but in truth it can be a very stressful time in your life. Finding a house that you are happy with, which is within your budget and that your whole family is happy with can be a difficult art to master, but quite often the deal for your new home can fall through thanks to a broken property chain.

What is a property chain?

imageThe simplest way to explain the housing chain is as a domino effect. Buyers and sellers are all together in a line and if one domino falls the rest could too. Moving house is hard enough but having the process held up or ended through no fault of your own can make it a much harder experience to endure.

In order to buy a new home you will probably, but not always, need to sell your current home and the person wanting to buy your home may need to sell theirs too. The person wishing to buy their home may need to sell their property first and so on.

The longer the chain becomes the more stressful your moving experience can be.

How does the chain come undone?

A chain can break for a number of reasons, for example:

  • A buyer in your chain struggled to raise the finance they needed to purchase their desired property
  • A buyer gets cold feet and decides they no longer wish to move
  • A seller finds a buyer willing to pay more
  • A buyer reduces their bid and makes a lower offer
  • Disputes over repairs

Is there a way to avoid this happening?

The only way to keep a property chain together is to ensure that all parties are honest with each other and that they are communicating effectively. If you find that your buyer decides to drop out then be sure to keep everyone in the chain including your solicitors involved, as sometimes chains can be mended, for example if a buyer pulls out for financial reasons then a reduced sale price could potentially keep things going. The most important thing is to be patient and to communicate with everyone involved.

Read our helpful article for more information on moving home and how best to deal with the associated stress.

Agree? Disagree? Do let Cooks Solicitors know what you think by commenting below.

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