What is a Property Chain? Why can they cause heartbreak? How do you reduce the risk of being involved with one?
Where better to get a definition of a property chain than from one of the UK’s biggest mortgage providers, Halifax.
It states: “A property chain is where a group of home buyers and sellers are connected. For example, if you want to buy a home but first must wait until the seller buys their next home, you’re in a property chain.”
We couldn’t have put it much better ourselves.
Now we know what a property chain is, there are two other key questions to consider.
Firstly, why are they one of the most common reasons for home purchases to fall through?
The answer to this question is that a property chain is usually reliant on all involved selling and buying successfully.
So, let’s say there are three parties involved in the chain as outlined in this example.
Mr Jones is a first-time buyer. He is buying Mr & Mrs Smith’s property. In turn, the Smiths are purchasing Miss Johnson’s home.
Miss Johnson is buying a chain-free, probate property (meaning no one apart from her and the sellers are involved). All three have had their offers accepted, and the sales process has begun.
Unfortunately, Mr Smith lost his job during the sales process (before contracts had been exchanged), and they have decided to stay put and take their home off the market.
This means the chain has ‘broken’ and now, Mr Jones needs to find a new seller and Miss Johnson a new buyer before they can both move on.
The second question is: What difference does a good estate agent make when handling property chains?
Well, there are several things a good estate agent does to reduce the risks of the chain breaking.
Of course, there are circumstances beyond anyone’s control where the chain collapses. This is hugely frustrating for everyone.
But by having an agent on your side who is organised, proactive, and communicates well, you reduce the risk of fall-throughs.
To discover more about how we expertly handle the home-selling process for our clients, contact us today on 01977 644 449 OR did you know if you're moving in the next 12 months, we offer 3 types of valuations depending on your current journey. Click Start Now to find out which one suits you.