Fall-throughs now affecting 40% of sales, claim

Fall-throughs are now running at a rate of up to 40%, a buying agent has claimed.

Henry Sherwood, managing director of The Buying Agents, said that fall-throughs have historically been at a 30% industry norm.

But he said that up to 40% are currently failing because of problems with the existing conveyancing process.

Sherwood called for industry leaders from the estate agency and conveyancing worlds to get together to sort out a post-Home Information Pack solution.

Sherwood said that some fall-throughs are caused by inexperienced buyers failing to do their due diligence. Others sales are failing, he said, when vital information is withheld by the agent or vendor.

Sherwood 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.”

Sherwood revealed: “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.

“It is in the interests of everyone involved in buying and selling property to work as efficiently as possible, so we firmly believe now is the time to get industry leaders together to find the best possible solution for all parties.

“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.”

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4 Comments

  1. Mark Walker

    Agreed, but conveyancers are currently slashing their own throats to the point where they can barely function as a service.

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  2. marccox

    sounds far to high we are a six office set up in a mixed area with 50% leasehold and we are currently running at 22% year to date.

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  3. PeeBee

    It should be noted that the authors of the original release deal only in London and the Home Counties. From reading the article, it seems to me that they simply want more of their job done for them…

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  4. Woodentop

    30% ……. your are fired. Never ever been that high and if 40% are failing on conveyancing what are his figures for survey and mortgage declines? His problem is the person in the mirror.

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