How many sale agreeds fall through?

Smythe

Of houses which go to the 'sale agreed' stage, what percentage of these deals fall through and don't proceed to the 'sold' stage?

Thanks.

Bigcheeze

Smythe wrote: »

Of houses which go to the 'sale agreed' stage, what percentage of these deals fall through and don't proceed to the 'sold' stage?

Thanks.

That info isn't available. If I had to guess I'd say 10-15%

on_my_oe

I'd say it would be higher, when taking into account those of us who are trying to buy from vendors in negative equity

Tombo2001

Based on my experience of having spent about 18 months looking for a house, I would say very low, no more than 10%.....in Dublin anyway.

Look at it from a different angle. When house prices are rising, a buyer is more inclined to see the deal through because of the opportunity cost, even if there is some issue with the house they dont like. It is quite difficult to get to the 'sale agreed' stage in the first place.

I'd guess there was more falling through in 2007-2011 when prices were falling.

chopper6

It does happen but not very often..as has been said it's difficult enough to get to the sale agreed stage..the estate agent will have contacted your lender to nake sure you're not wasting thier time.

ionapaul

Wow, our experience is that there are loads falling through at the moment - particularly after big bidding wars. I imagine it's because people loose the run of themselves and end up bidding more than they're realistically ever going to get from their bank - for example myself and the missus are mortgage approved for €X, now I know that if we actually tried to draw down €X the bank wouldn't play ball, so I'm not happy relying on more than €X-20% when making a bid. I know of other people who just assume they'll get the full amount they've gotten AIP for, and others (these people are even worse, driving the market up ) who are going around making crazy bids without having AIP in place, only for the bank to flatly refuse them AFTER going sale agreed.

We're actually going to see two properties tomorrow that both went sale agreed (one twice!) in the last few months, only for the sales to fall through...

Little Miss Cutie

We have been sale agreed once and the vendor pulled out - couldn't find anything they wanted to move to.

In the 18-24 months we have been looking I have only heard of three others falling through but then again you never know if it went to final bidder or someone else that was bidding.

Sale agreed now and hoping it doesn't happen again.

gmisk

on_my_oe wrote: »

I'd say it would be higher, when taking into account those of us who are trying to buy from vendors in negative equity

I think definitely higher that 10-15.
I have been sale agree 3 times and not bought anything....

GavMan

ionapaul wrote: »

Wow, our experience is that there are loads falling through at the moment - particularly after big bidding wars. I imagine it's because people loose the run of themselves and end up bidding more than they're realistically ever going to get from their bank - for example myself and the missus are mortgage approved for €X, now I know that if we actually tried to draw down €X the bank wouldn't play ball, so I'm not happy relying on more than €X-20% when making a bid. I know of other people who just assume they'll get the full amount they've gotten AIP for, and others (these people are even worse, driving the market up ) who are going around making crazy bids without having AIP in place, only for the bank to flatly refuse them AFTER going sale agreed.

We're actually going to see two properties tomorrow that both went sale agreed (one twice!) in the last few months, only for the sales to fall through...

ionapaul,

What makes you say if you tried to draw down the full value of your AIP that the bank would refuse.

Do you think that is something specific to yourself or part of a wider policy.

I would be pretty disappointed if I could not draw down the vast majority of what I have approval for (a pretty modest amount). Certainly would not like to able to only draw down 80% of it!!!

ionapaul

GavMan wrote: »

ionapaul,

What makes you say if you tried to draw down the full value of your AIP that the bank would refuse.

Do you think that is something specific to yourself or part of a wider policy.

I would be pretty disappointed if I could not draw down the vast majority of what I have approval for (a pretty modest amount). Certainly would not like to able to only draw down 80% of it!!!

No, nothing specific to me. Just know that a lot of problems are occurring at the moment when people go back looking for anything close to 100% the amount listed in the AIP (and we have gone through very rigorous AIP processes, so final approval only needs two months paychecks and one month credit card before being finalised). We're approved for 4 x joint salary, I know we'd never get past 3.5 x joint when the final underwriters get their look in. Banks are rightfully relatively (though still not enough!) cautious compared to the boomtime madness.

Just also mention that the amount we're approved for isn't really a "modest amount", so there's even more reasons for the banks to pull back when push comes to shove.

Glenbhoy

ionapaul wrote: »

No, nothing specific to me. Just know that a lot of problems are occurring at the moment when people go back looking for anything close to 100% the amount listed in the AIP (and we have gone through very rigorous AIP processes, so final approval only needs two months paychecks and one month credit card before being finalised). We're approved for 4 x joint salary, I know we'd never get past 3.5 x joint when the final underwriters get their look in. Banks are rightfully relatively (though still not enough!) cautious compared to the boomtime madness.

Just also mention that the amount we're approved for isn't really a "modest amount", so there's even more reasons for the banks to pull back when push comes to shove.

I don't understand what you're saying, on one hand you're saying that you've been through a very rigorous AIP process, but on the other you are saying that regardless of the rigour, you couldn't get what they've offered even though you will presumably have complied with their final conditions as the final underwriters will not sanction it?
We got SIP from AIB last year, can't remember what salary multiple - actually was about 3.3 times joint (3 kids in childcare). I had heard stories before about draw downs not reflecting the SIP, so I quizzed our advisor, who is also relationship manager for a business I am involved with and he maintained that as long as we were able to produce the minimal paperwork at the draw down stage, then we would get the SIP amount.

The_Conductor

Speaking to a receiver from KPMG- he reckons of the last 2000 properties they have been involved in, between 33 and 50% of sales fall through. He rather interestingly added that during boom times their experience was that 2 in 3 sales fell through. He is dealing with residential property solely in the Dublin area and commuter belt.

From a personal perspective- looking at property with my father-in-law at the moment. 2 of the 3 properties we had bids on, but which went over our limit- have come back to us wondering if we're still interested.

pwurple

I'd say 33 - 50% sounds about right. We were sale agreed 3 times before our 4th went through. Issues with title, engineer reports, being gazumped etc.

GavMan

The_Conductor wrote: »

From a personal perspective- looking at property with my father-in-law at the moment. 2 of the 3 properties we had bids on, but which went over our limit- have come back to us wondering if we're still interested.

Have heard quite a bit of this.

Chap in work was bidding on a 4 bed in SCD. Hit his limit and pulled out. Coming up to 2 weeks later, EA came back claiming the deal had fallen through. Mate reckoned there was never another bidder.

Kind of get the same feeling about a house I'm looking at myself...