40pc of completions falling through
In recent years, a 30% “fall through” rate has been accepted as the industry norm. However, latest research from The Buying Agents has revealed that this figure has now increased to around 40% in some areas due to lack of sufficient due diligence conducted by inexperienced buyers.
In a number of cases, the property search agent has also found that many sales have fallen through as a result of vital information being withheld by the agent or vendor early on in the process.
Henry Sherwood, managing director of The Buying Agents, said: “Many buyers are unsure what questions they need to be asking agents and are often left without all the facts.
“In theory HIPs were a good solution to this problem as they encouraged vendors and agents to disclose any potential issues early on in the process. However, the cost and administration involved in preparing them meant that their introduction in 2007 was not well received by the majority of agents.
“In certain areas we have seen an increase of around 10% in the number of properties returning to market which indicates there are still problems with this antiquated process.”
Sherwood added that it is in the interests of everyone involved in buying and selling property to work as efficiently as possible and that he firmly believe now is the time to get industry leaders together to find the best possible solution for all parties.
He continued: “Buyers should always have access to detailed information about the property before they consider making an offer.
“Some of the things to be aware of include details of the lease and any relevant restrictions, physical issues such as damp and subsidence as well as whether or not the property has been on the market before and if so why it returned to market.”