Over the past year, the housing market had been filled with people with a significant desire to buy a new house, whether to expand, downsize or move away from the commute.
For most people buying a house, the process will be straightforward and they will get the home of their dreams without too many issues.
However, there are some cases where sales are delayed, negotiations stall, and in the worst-case scenario could collapse completely.
Here are some of the worst-case scenarios when buying a home and how to spot the telltale signs that this could happen.
- Your Dream House Has Fundamental Problems
It is vital to check every element of a house you plan to buy for a range of reasons. Whilst the design, locale and first impressions may look so good that you put in an offer, make sure to pay for an inspection to see if all of this beauty is skin deep.
Some problems are fixable, such as older electric systems, dated décor or thermal inefficiency caused by old windows.
Foundation issues, mould, asbestos and other toxic materials being found, on the other hand, can be fixed but at such a considerable expense that can make the initial offer almost laughably high, and could potentially take years to fix
Often this is a requirement of mortgage lenders for basically the same reason why you should always get a thorough inspection of any home you plan to buy; you need to ensure that it retains its value if you choose to sell, and lenders do not want to be stuck with an unsellable house.
- Your Mortgage Offer Falls Through
A lot can happen in six months, but try to avoid any major life changes from the time when you get your mortgage promise to the time when you put your full application in.
An agreement in principle is not a full mortgage offer, and certain smaller details or information that is flagged up during credit checks can affect your eligibility.
Try to stay in the same job, avoid huge purchases or taking out loans, and try to avoid buying large amounts of furniture until the purchase is fully confirmed.
- Part Of The Property Chain Falls Through
Most buyers and sellers make offers dependant on whether another sale or purchase completes, and this can extend into what is known as a property chain.
The more links in the chain, the greater chance that a delay, a problem in the conveyancing process or a cancelled purchase will affect you.
If you are a first-time buyer or your purchase does not depend on you selling your home, that can put you at a tremendous advantage in negotiations as it removes the chain on your end, and it can be worth selling your home and putting items in storage until you buy a new house to remove the chain.