Why do property chains break?

Chains can sometimes cause problems because occasionally they break. It could be because one of the buyers fails to come up with the finance; it could be that someone changes their mind either for personal reasons or for practical reasons i.e. some serious structural issue that is discovered in the survey. It has been quoted by some that in fact one in three property chains break. This is perhaps made worst by the current financial climate.

Another reason that chains can fall apart is because of gazumping. This is when someone else, other than the original buyer, makes a bid at the eleventh hour. It is perfectly legal but can be a nightmare as it interrupts the original chain. By law, an estate agent must
communicate all offers to the vendor. This is different in Scotland because there are laws in place to protect the buyer.

How can you avoid breaking a property chain?

It can help if you try to make the purchase or sale go through quickly and smoothly. This can be aided by keeping in regular contact with your estate agent and solicitor to try and speed things up. This limits the chances of things going wrong or people changing their minds by constricting the time frame as much as possible.

Another thing you can do is prepare for the unexpected. If, for example, you have already sold your property but the purchase of your next property is taking time, you will be able to stay in the chain if you have a back up plan. That could be arranging to stay with family or friends, or taking a short-term let.

How can you avoid gazumping?

One way to avoid gazumping is to purchase a property directly from a vendor. There are several websites available where you can view properties online and contact the vendor directly. This way, there won't be any estate agents to pass on any offers! They may also be willing to settle for a lower selling price since they will not have to pay estate agent fees.

Another thing that might swing in your favour is that if you have built a good relationship with the vendor, they might prefer to sell their property to you rather than someone who comes along at the last minute with a higher offer, particularly if they are attached to their home and want to sell it to someone they like.

You may not be able to stop a Property chain from breaking, but there are certainly things you can do to limit the chances of it happening.