What to do when you are in a property chain.
Being in a property chain is an unfortunate reality for many people when buying or selling but is it just a question of sitting back and hoping for the best or are their things you can do to help prevent it or move it along.
What is a property chain?
A property chain is a term used to describe a number of property transactions that are linked together and need to conclude at the same time. Apart from the buyers at the bottom of the chain and the sellers at the top of the chain everyone in the chain is both buying and selling.
Chains can be any number of transactions, the more transactions the more likely that it will fail as the chain is only as strong as its weakest link (vendor) and within that chain you have many professionals, solicitors, surveyors, estate agents, mortgage companies etc understanding where any delays or problems are in a chain can be a difficult task.
Can I avoid getting in a property chain?
Yes you can but you will exclude a large part of the market so you should try to avoid or work with it rather than refuse to be in a chain, here are our tips for avoiding or reducing a property chain.
Selling.
- Choose a buyer that is not in a chain, a cash buyer or a first-time buyer.
- If you are buying a new build many builders will offer part-exchange deals, the problem with this is they tend to offer below the market rate.
Buying.
- Sell your property in advance and move into alternative accommodation. This may seem drastic but it will put you in an excellent position when buying.
- Look for properties to buy with no chain, I know most people buy because they fall in love with a house but at least prioritise the properties with no chain.
- When making an offer, try to get the vendor to agree to a completion date, they either must move into a new home or rent one.
Why do property chains snap?
Recent surveys suggest that one in five chains fail for some reason and in a slow market this figure tends to be higher. There are many reasons for a chain to fail such as a change of mind, taking too long, found someplace else or a reason based on the technical side of the transaction, something wrong with the survey, the solicitor has a problem, a financial issue, the problems you have in a chain are the same as you will have without a chain but because you have more in a chain the chances of a problem are multiplied and therefore more likely.
What you can do is make sure it’s not you that are the causes of the problem, if you believe you could create a problem then fix it in advance, arrange your finance, get a damp report, whatever it is be proactive.
What can you do to help when in a property chain?
Making it happen is the job of the property professionals that’s what they are paid for and they have more experience than you, however, they are all human and you get good professionals and not so good ones.
These are a few best practices to help,
- When appointing an estate agent make sure you are happy with the way they move things forward after offer, look at reviews prior to appointing them.
- When appointing your solicitor speak to them make sure it’s easy to communicate with them when you need to.
- Sort out your mortgage as soon as possible.
- Be organised with your paperwork, ask your estate agent in advance what paperwork you may need for a sale.
- Turn round any paperwork as soon as you can and hand deliver where possible.
- Manage expectations, tell the vendors what you expect I will buy your house but I am looking to complete on x date, you can do the same with your buyer.
Sometimes chains are unavoidable but if you are in one don’t be the weakest link!