Oldham estate agency boss reveals how to avoid a property chain collapse

Jake Rowson, from Ryder & Dutton in Oldham, has warned that with two thirds of the borough’s properties selling in under a month it is vital to avoid any part of the property chain collapsing when securing your dream home.

A property chain is where a group of home buyers and sellers are connected, and there is more than one property involved in the sales process.

If you own a house and need to sell it to buy another, the person buying your house and the person you want to buy from are part of your chain, along with the people involved in buying or selling their properties

The main things that cause people to pull out of buying a property are surveys that show up structural or high-cost repair issues, legal or boundary problems, and buyers being unable to secure the amount of funding required.  

Jake said: “Although there’s nothing you can do to guarantee a chain won’t break down, there are lots of things you can do to minimise the risk.

“And with the Oldham housing market being more competitive than ever, and two-thirds of properties here selling in less than a month, it’s important to ensure that once you’ve found your next dream home, you do everything you can to avoid any part of the chain collapsing.”

Here are his top tips on how to reduce the risks:

Get yourself in the strongest position to seal the deal

If you have a house to sell, ensure you have a firm buyer lined up before you begin offering on other properties.

You also need to get your finances in place, so see a mortgage advisor to determine exactly how much you can borrow and get them to give you a mortgage in principle document so you can prove to estate agents and sellers exactly what you can afford.

It’s also good to get a trusted solicitor and surveyor lined up.  

Vet your buyer

Make sure you and your estate agent fully vet the person buying your home.

You need to find out if they have another house to sell before they can complete on yours, and if they do, find out exactly how far along that sale is.

Also check that your estate agent has done full due diligence on the buyer and any buyers below them. Ask your agent if they’ve seen evidence of the buyer’s funding and checked that they have a good solicitor in place.

Do your homework on the property you’re buying

When you find a property you like, do your homework and find out what the seller’s situation is before you put in an offer. Find out if they’ve already offered on another property, or do they still need to find one?

Also ask the agent in charge of selling the property you want if there are any issues with it that they know about that may show up in a survey.

They have to answer honestly, so it’s always worth asking.

Use a good agent and a good solicitor   

You want to be in hands of a good estate agent and a good solicitor who are efficient and responsive, and who you trust to push things forward for you.

Decide whether a big chain is worth it

When you find a property that you’re interested in, find out whether it’s part of a chain.

If it is part of a big chain, it’s important to think about whether you want to go ahead and put in an offer.