The number of sellers pulling out of residential property deals simply because they have changed their minds has risen sharply this year and is the main reason for fall-throughs.
In the third quarter of this year, it accounted for more than three-quarters (78.2%) of transactions cancelled by the seller. This is up 14% since the start of the year. The figure for Q1 was 63.9%.
However, the overall number of fall-throughs has fallen 8% over the year, according to figures from conveyancing firm 1st Property Lawyers.
It said that 23% of all property sales fell through in the third quarter this year, compared with 31% for the same period in 2010.
However, the firm says overall fall-through rates remain 3% higher than two years ago, when they were 20%.
Mark Montgomery, commercial director of 1st Property Lawyers, said: “The continued uncertainty of the housing market means many people remain unsure when it comes to buying or selling property.”
The firm’s research, based on its own conveyancing figures, found that the main reason cited by buyers for their purchase falling through was the vendor pulling out of the transaction, accounting for 25.7% of fall-throughs.
By contrast, 11.9% of fall-throughs cited by buyers were because they could not get a mortgage. The chain collapsing was responsible for 5.5% of fall-throughs experienced by buyers, and being gazumped was cited by 4.4%.
Sellers who cancelled a sale simply because they decided to pull out was far ahead of any other reason for sellers’ not going ahead with a deal. Just 3.2% had to cancel because they were repossessed, and only 2.8% of vendors cited buyers pulling out of the deal. Chains collapsing were cited by just 1.5%.
1st Property Lawyers is a trading name of Premier Property Lawyers, part of myhomemove.
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Comments
Oh I fully agree! Nothing more irritating than a speculative vendor testing their property at a daft price, confusing 'proper' vendors and buyers.
CL - I agree the traditional model works well in a market that has high transactions and therefore quicker turnover. Not so well in the current market and with so many vendors just testing it.
I would say that it ALLOWS Vendors who would do that, rather than encourage them. Some people just want to test the market.
I think that people would actually be less likely to market a property with an Agent if they knew that they would have to pay regardless. It's the same as an upfront fee, wheres the incentive to sell? Dont forget, an Agent gets paid at the end normally on a %. More incentive to sell quickly, at a higher price.
So do agents agree that there is good evidence that a no sale no fee, encourages this behaviour from Vendors. The only other fee that you hear about is a monthly listing fee, which vendors say only encourages the agent not to sell the property. Is anyone out there more creative.??
Paul - Angry Bird is absolutely right. I don't know of any buyers or sellers who would like to deal with an agent, or anyone for that matter, of your arrogant and childish tone.
Her experience has been a bad one, yet your 'comments' have worsened her opinion of EAs.
There is an underlying problem with too many agents not doing their job properly - you appear to be contributing towards that category.
That is a good point AB.
Assuming that you've paid nothing in fees (?) then the EA would be the dimwit as they have incurred costs but generated no revenue. Dim indeed.
Paul that is exactly why we have pulled our house. You make my point for me. Thank you. Who would want to give any money to your lot.
Hmm is it us who are dimwits or the EA whos advise we followed?
As an estate agent hoping to avoid the zoo does anyone know where I can buy a decent secondhand fruit barrow as I px'd my old one to pay my NAEA licensing fee?
You realy do think what you think don't you?
Roflmfao!
Dear AB so what did the agent say you would actually SELL for?
Probably the figures that were being offered as all the punters seem to do today is research before calling. If it looks about right on the price you get a viewer. Offers then come in below as they all think prices are still falling.
What sort of offer would you put in? Probably a stupid low one.
I suggest that you can shove it off this site as we dont need dimwits like you anyway. This ia an Estate Agents Forum and not for the likes of riff raff like you.
Errr says: “What kind of idiot would post that bollocks? Post the industrial revolution the whole point of trains, cars, bicycles, aeroplanes etc was to travel more than 20 miles from our birthplace and on a regular basis too.”
What kind of idiot indeed!
1) The agricultural revolution occurred sometime between 7,000-10,000 BC. The Industrial revolution occurred about 300 years ago. Now to complete your education
2) The definition of most:
“most adj. Superlative of many, much.
a. Greatest in number: won the most votes.
b. Greatest in amount, extent, or degree: the most amount of time”
3) Now re-read my post ..."Throughout most of human history post the agricultural revolution people never travel more than 20 miles from where they were born and died there. "..and whose the idiot now, mottafcka!!
4) Errr looks like the tool he is.
James Bedford - If you want advice on your car, you go to your local garage. If you need advice on your health, you go to your doctor.
For those who are looking to market their property, they should be able to go to their local estate agent(s) and receive an honest appraisal/valuation.
Besides, EAs are the experts, right?
Even if Angry Bird did see the £ signs and went with the highest val, because the agent said "they could achieve that price", then how is she to blame?
For all you know, she (like many of the public) may not be too informed of the property market and therefore relies on the agent's advice...and trusts it.
The problem does not lay with vendors who are opting to go with higher valuation - it's the fact that certain branches/companies are crooked and deliberately providing false information to tie in 'their' vendors.
A vendor opting for the highest valuation is completely different to a vendor demanding their house be put on the market for £X.
I absolutely love the post from Historian - I assume it was supposed to be a bitingly sarcastic critique on modern society?
Mind you the last paragraph rang true...
That said, I have posted several times about up front and fixed fees.
I think that Rightmove (good name for it too) will eventually launch a "direct to the public" service.
The maths behind it is compelling - why limit yourself to £500 per month per agency, when you could earn £300 up front and a completion payment at the end.
They are one of the UK's most trusted brands too...
More shite! most realise that apart from a few high up front fee mortgage deals a typical variable rate mortgage deal is 3 or 4 % above base rate. When interest rate go up 3 or 4 percentage points these vendors have realised that they can not afford to pay an over extended mortgage at anything like the LTV they are currently enjoying.
A sensible agent ought to be interviewing any perspective vendor before even bothering to dirty their shoes on the cheap static ridden carpets.
"Throughout most of human history post the agricultural revolution people never travel more than 20 miles from where they were born and died there"
What kind of idiot would post that bollocks? Post the industrial revolution the whole point of trains, cars, bicycles, aeroplanes etc was to travel more than 20 miles from our birthplace and on a regular basis too.
good to hear it most go for the top price and wonder why most agents overvalue not all agents are aloike bit you must copmpare like for like.. you are obviously a very angry bird and i suspect with good reason but but we are not all the same ...lets face it not all birds are angry !!
James
Greed? You're having a laugh. I got 3 so called "professionals" to give there opinion and went for the middle one.
So, Post HIPS, Vendors are pulling out of sales having put their house on the market as a whim. Hmm strange!!! Didn't see that one coming Duh!!!
perhaps angry bird shouldnt have succumed to greed and gone with the highest valuation
The big problem with upfront fees is that most EAs are not very professional, they are either incompetent or lazy, which is why they went into estate agency in the first place.
If you take away commission they would have no compulsion to do anything. As a result the vendor would get literally no service.
What do we expect? We give people unrealistic price expectations in order to win the instruction and are then surprised that they pull out when this becomes obvious. Give me a break.
From accounts I have heard, the service received by some vendors, using a no sale, no fee has been a shambles... For a selection of agents I know, they would not last 5 minutes by charging an up front fee.
Estate Agency is one of, if not the biggest, sector where there is no public trust. There is a lot of work to be done and charging fees regardless is not going to help that.
I know people who have pulled out of sales. The service they have received has been rubbish in comparison to what they were promised at the first meet....so bad that they lose confidence in the whole system and want to re-gather their thoughts on the whole situation. It takes a lot to win them round and restore 'some' trust.
EA feess, moving fees and a double whammy on sol fees to name a few, make it better off to stay in your property if you don't need to move and ESPECIALLY if the selling agent has not delivered on their promises.
That's because all we get is insulting offers of well below what our houses are worth thanks to useless agents sending any old tom dick or harry round. You can all shove it.
perhaps now we should finaly get rid of no sale no fee!lets face it were the only professional buisness that just accepts it ,and i dont mean a tiny aborive fee either !
Throughout most of human history post the agricultural revolution people never travel more than 20 miles from where they were born and died there.
I think we are returning to that now. Rather than accept anything below peak prices families will simply say in the same house for generations never moving.
Of course after the great economic collapse of 2013 estate agents will starve having no demand and more importantly, no transferable skills. They will be preserved only in zoos.