20th October 2021

Reduced ‘fall through’ rates are positive news

Reduced ‘fall through’ rates are a good news for Buyers’ & Sellers’.

The current high-demand for new homes and low stock levels, has left buyers’ desperate to make each sale work, knowing that they may struggle to find another property if it doesn’t. The end of the stamp duty holiday has also, undoubtedly, had an impact on the number of sales being rushed through to completion in order for the buyer to benefit from the financial savings. Current low stock levels mean the majority of people who are moving still have a strong desire to do so, regardless of the frustrating situation still surrounding the conveyancing process. They are serious and committed to the move, which ultimately results in a lower fall-through rate.

‘Reason’ for buyers’ change of mind

In those property deals that did collapse over the last 3 months, experts suggest that the breakdown of reasons are as follows:

– buyer changes mind or tries late price renegotiation: 37 per cent

– buyer pulls out after survey or legal problems: 21 per cent

– slow progress leads to buyer pull-out: 16 per cent

– mortgage refusal for buyer: 10.5 per cent

– gazumping: 10.5 per cent

– other: 5.0 per cent.

It goes without saying during the conveyancing process, that it’s best to remain vigilant and respond quickly to Solicitors’ demands for information or documentation follow ups. Reducing delays throughout the process will undoubtedly improve completion times, and cut down on the possibility of people pulling out.