Selling a property is stressful enough without the added stress and uncertainty of a broken house chain. This is one of the biggest problems that vendors and developers face in the current housing market.
It’s important then to understand what a housing chain is, how to avoid one and how to repair one should you end up in that unfortunate position. This short but detailed guide will get you up to speed and give you the information needed to mend a broken house chain.
What is a House Chain?
A house chain is quite simple. It is a sequence of linked house purchases that all depend on the preceding and succeeding purchase. Around 90% of all homebuyers in the UK end up in a house chain.
A housing chain always starts with a buyer such as a first-time buyer with a mortgage and who is not dependent on the sale of an existing home to buy a new one. The homeowner they buy from needs the money from the sale of their existing property to buy their next home. They will then find a home to buy whose current owners require the money from that sale to buy their new home and so the chain reaction begins.
The housing chain can only end when a cash buyer enters the chain and there is no onward purchase. This could be a person who is simply cash-rich, moving to a rental property or is moving abroad.
What are the Issues with a Broken House Chain?
When a housing chain breaks it causes huge frustration throughout all the parties involved. Housing chains are unpredictable and there is no knowledge of when one might break. In a housing chain, all the sales of properties are linked together and when one goes wrong it affects all the sales. This can prove to be a nightmare for estate agents and developers.
At the point in which you find out the chain has been broken, you may have already paid for the searches, solicitors fees, surveyors and a number of other services. This can leave a big hole in your pocket, forking out money you didn’t expect to spend.
How to Mend a Broken House Chain
If you end up in the unfortunate position of a broken house chain with your customers do not worry, there are some solutions. You could use a professional house buying or part exchange company to buy the house quickly, bypassing the housing market and avoiding the house buying chain altogether.
This can help you maintain the flow of your project development process without being locked into a traditional property chain. This will save you time and money, plus you will be able to provide your customers with a smooth house buying transition.
Chain repair shortens the average property chain length, saving time and removing non-essential third parties from your sale proceedings so that you aren’t left waiting for others to sort out their affairs. This means that the successful sale of your customer’s house will no longer depend on someone else selling theirs.
Anyone with development plans can be protected from delays by any failed sales. This allows you to continue developing with fewer bumps in the road.
I Have a Broken House Chain, What Should I Do?
If you do end up in the unfortunate situation of a broken house chain, it’s best to contact a professional home buying company like HBB Solutions.
Speak with our professional staff, explain your situation to us and we’ll send you an offer Request Form for you to submit all of your customer’s information. We will then send in local estate agents (at no cost to you) to provide us with an independent valuation of the property, which can be located anywhere in England or Wales.
Once the valuation is complete, we will send you an offer for you to share with your customer. If your buyer agrees to our price, we’ll send you an Offer Acceptance Form. Once all parties have agreed on a sale date, your customer can move ahead with their plans for purchasing a new property.
Contact us now on 01509 690 065 or email us at email@example.com.