Why sales fall through
Until contracts are exchanged, either side can pull out. The common reasons are:
- Mortgage problems: a low valuation, a changed offer or a lender refusing the property.
- Survey findings such as damp, structural movement or roof problems.
- Chain collapse: someone further down the line pulls out.
- Legal issues: missing approvals, title problems, lease issues.
- Change of heart or personal circumstances.
The first week
- Ask your agent and solicitor for the real reason, in writing if possible.
- Check whether your onward purchase can be held, and for how long.
- Decide whether the problem can be fixed (a missing certificate, a repair quote) or will put off the next buyer too.
- Go back to anyone who offered or viewed before.
- Get a cash offer as a benchmark, even if you don't take it.
What you can and can't recover
Before exchange, there's no deposit to keep and usually no compensation. You've still paid your solicitor for work done and any certificates, but much of that work carries over to the next buyer. After exchange it's different: a buyer who fails to complete normally loses their deposit and may owe more.
Fix the cause before you remarket
| Reason it fell through | What helps next time |
|---|---|
| Down-valuation | Check the asking price against recent sales; consider a cash buyer if the property is hard to value |
| Survey found problems | Get quotes so the next buyer knows the cost, or price them in |
| Missing paperwork | Sort regularisation, indemnity or certificates now |
| Chain collapse | Prefer chain-free buyers, or a delayed completion |
| Lender refused the property | Market to cash buyers |
When a cash buyer makes sense
A second or third collapse is exhausting, and it can cost you your onward purchase. A chain-free buyer with their own money removes the mortgage, survey and chain risks in one go. At Belmont Road in Ashley Cross, a partner agent brought us a house after two previous sales had fallen through. We exchanged and completed in under two weeks, then refurbished it and resold it within six months.
Your solicitor's searches and the property information forms can usually be reused for the next buyer, which saves time when you relaunch.
Protecting your onward purchase
If you were buying too, the collapse of your sale puts your purchase at risk. Talk to the seller's agent straight away: explain what happened and how quickly you can replace your buyer. Some sellers will wait a few weeks; others will want to move on. If you can show a credible plan, such as a chain-free cash offer you can accept, you're far more likely to keep the house you wanted.
Check your mortgage offer's expiry date too. If finding a new buyer will take months, your lender may need to extend or reissue it.
Questions to ask before you accept the next offer
- Is the buyer chain-free? If not, how far along is their own sale?
- Do they have a mortgage agreed in principle, and with which lender?
- Have they seen the survey findings or reasons from the last sale?
- Can they commit to an exchange date?
- Will they accept the paperwork already prepared by your solicitor?
GOV.UK's guide to selling explains the steps and responsibilities on each side, and is worth reading if this is your first sale.
Source: How to sell a home (GOV.UK)
If a survey found a problem, getting a quote to fix it often helps more than a price cut: the next buyer can see exactly what they're taking on.
How to stop it happening again
- Price on evidence. Use recent sold prices, not the highest asking prices, so a buyer's valuation backs up the deal.
- Get ahead of the survey. If you know about damp, roof issues or cracks, get quotes or reports now.
- Have paperwork ready: certificates for windows, electrics, boilers and any extensions.
- Vet buyers: chain position, mortgage in principle, and how quickly they can move.
- Keep in touch: ask your solicitor and agent for weekly updates so problems surface early.
When to stop and take a certain offer
There's no fixed rule, but if a house has fallen through more than once, or the same problem keeps coming up at survey stage, it may be time to compare a cash offer seriously. Work out what another few months would cost you in bills and risk, and whether your onward purchase can wait. Sometimes the open market is still the answer. Sometimes certainty is worth more.
Our article on how long it takes to sell a house sets out the stages and what tends to slow each one down.
Can you claim costs from the buyer?
Usually not, if they pulled out before exchange. Until contracts are exchanged, neither side is bound, so wasted legal fees and survey costs normally stay where they fall. Some sellers ask for a non-refundable reservation fee or use a reservation agreement to discourage buyers from walking away, but these aren't common in ordinary sales and need careful drafting.
After exchange it's different. A buyer who fails to complete is in breach of contract: they normally lose their deposit and may be liable for further losses. That's why getting to exchange quickly is the best protection you have.
What to do next
If your sale has fallen through in Bournemouth, Poole, Christchurch or nearby, call us. We'll tell you straight away whether we can help and how quickly. See how selling your property to us works, or read cash house buyer or estate agent?
