One of the reasons we went into estate agency is because we love helping people find their dream homes. We love it when everything works, the seller gets the price they were looking for and the buyer gets a new home they’ll really cherish.

But things can go wrong and house sales can fall through. Fortunately, most of the common problems are avoidable. Here are some of the most common problems, and how to avoid them.

1.     Mortgage problems

When you’re preparing to buy a home, it’s always a good idea to get a mortgage in principle. This is when a lender agrees to lend you the money to buy a house, before you put in an offer. This is a good idea because it means that you can put your offer on the table immediately, and inspire confidence in the seller.

However, mortgages in principle can go wrong. For example, a bank might agree to lend £200,000. But if you make an offer for a house that is worth more than £200k + your deposit, the bank might not be willing to lend you the additional funds.  

The mortgage in principle is usually based on your current circumstances – income, savings, whether you already own property and how many people depend on you financially. So if, for example, you change your job in between taking out a MIP and completing the sale, you might invalidate the MIP.  

This agreement is usually valid for six months, so if you don’t find a property to offer for within that time, you won’t be able to make use of the MIP. 

Fortunately, you can avoid these problems. Put off taking out a MIP until you’re ready to go house hunting, then remember the detail and stick to the agreement.

2.     Chains

Chains happen because most people are buyers and sellers at the same time. They want to buy your house, but they need to sell their own to make that possible. This creates chains of buyer/sellers. 

The problem with chains is that if one person pulls out of the chain, the whole thing breaks down. Perhaps one of the links in the chain is having problems with their MIP, described above. Perhaps their circumstances change and they no longer need to move house. Whatever the reason, it’s a nightmare for everyone else in the chain as it means that none of you can buy or sell your houses. 

If this happens to you, there’s not a lot you can do about it, unfortunately. However, you can try and avoid it happening in the first place. Look for properties that are part of a short chain or better still, chain free. 

3.     Surveys

Before you buy a house, the mortgage lender will ask you to have it surveyed. This is to find out if there are any serious problems with the property that make it a bad risk for the bank. 

Sometimes, surveys reveal serious issues like subsidence, or lesser problems, like dangerous wiring, that will cost money to fix. If the problem is serious, or you can’t afford to repair it, you will not be able to buy the house. Even if you think you can live with it, the bank will not lend you the money for a dangerous property. This is because, if you default on the mortgage and the bank repossesses the house, the bank will need to sell it to get the money back. The bank won’t be able to sell it if it’s falling down. 

Responsible sellers will have a survey done before they put their house on the market. This means that the buyer won’t get any nasty surprises, and the seller won’t find themselves committed and having to pull out of the sale. 

Buy and sell property in Guildford

 Buying or selling a house is one of the most important and responsible transactions you will ever make in your life and it’s not always easy. However, if you plan carefully and treat your house buying or selling with the seriousness it deserves, you should be able to avoid these problems and move into your new home a few months after you first offer for it.

If you have any questions about buying or selling Guildford property, Cobbles are here to help. Give us a call on 01483 457 000 and we’ll help if we can!