Slow house sale transactions make life difficult for buyers and sellers.
They can result in broken property chains, which make things even worse.
So, avoiding this outcome is crucial…
This is where the term ‘no onward chain’ comes in.
Read on to learn about what this means, its causes, and how to manage it.
What does ‘no onward chain’ mean?
No onward chain refers to when a property seller is not reliant on funds from their sale to purchase a new house.
This situation appears when the seller already has somewhere else to live. They don’t first need the funds from selling their property.
No onward chain scenarios enable sellers to avoid property chain difficulties.
As a result, transactions happen fast.
Is there a difference between ‘no onward chain’ and a ‘chain-free buyer’?
Yes. No onward chain refers to a seller independent of other transactions. Chain free buyers already have the funds to buy a property.
Sellers with no onward chain are usually experienced property sellers.
By contrast, chain free buyers sometimes are and sometimes are not. For example:
- Cash buyers – experienced chain-free buyers
- First time buyers – inexperienced chain-free buyers.
What causes a seller to have no onward chain?
A seller may have no onward chain for a variety of reasons.
Inherited property through probate
If a property inherited via probate is sold, then the seller is unlikely to have an onward chain.
After all, they likely already had a home before the property was inherited. So, they do not live in the house being sold.
Tenanted property is currently without tenants
There may be no onward chain if the property was previously rented to tenants who have since moved out.
The landlord will likely live somewhere else. This means the house being sold is currently empty. So, they are not reliant on the sale to purchase another property.
Purchase of seller’s new house already completed
A seller may also have no onward chain because they have already purchased the house they move into.
Not being sold by traditional estate agents
Property companies typically have several differences from traditional estate agents.
One of these is thatthey often have enough cashflow not to need an immediate sale.
If you search ‘No Onward Chain‘, the houses that meet this criteria will appear.
And when houses are sold at auction, the seller is unlikely to be living there themselves.
Do properties with no onward chain sell for more?
Houses with no onward chain are be valued slightly higher than ones with chains.
This is because it makes the buying process easier and faster. Many people are willing to pay more for this.
There is often a short supply of houses with no onward chain. This increases competition and prices.
How to find properties that have no onward chain
Searching for a property with no onward chain limits your options.
That said, there are some ways to locate these types of houses.
Use search category filters
Rightmove and Zoopla have tools enabling search for properties with specific criteria.
Make a request to estate agents
You can ask estate agents which properties they are selling with no onward chain. Many should be able to provide options for this.
Work with cash house buyers or auctioneers
Cash house-buying companies that sell a house are less likely to have an onward chain. This is because they offload the property to make a profit.
And houses listed for sale at auctioneers will also be less likely to have an onward chain.
Potential reasons for no onward chain sales falling through
Although relatively unlikely, some ‘no onward chain’ house sales do fall through. There are several reasons this can happen.
1. Gazumping
Gazumping is when a seller accepts a higher offer from someone else.
This can be frustrating and unethical. But it is legal if the exchange of contracts hasn’t occurred.
2. Gazundering
Gazundering iswhen the buyer reduces their offer before the exchange of contracts.
Its aim is to cause the seller to accept a lower offer. But it can result in the seller refusing the offer and putting the property back on the market.
It is essential to be well-informed about the legalities of pulling out of a house sale. both when buying and selling.
3. Potential buyer cannot secure a mortgage
When the potential buyer can’t secure a mortgage, the seller might search for a new buyer.
4. Slow conveyancers
A sale can fall through because one of the parties becomes frustrated with the deal taking too long. This may happen if there are conveyancer delays or sellers stall.
5. Survey reveals issues
Sale may also fall through because the survey reveals problems with the house.
A buyer may walk away if these issues are major. For example, structural defects or pest infestations.
We Buy Any Home’s cash buying services
If your house sale has fallen through, We Buy Any Home can help.
We are chain-free cash house buyers who have purchased thousands of properties up-front.
Fill in our enquiry form below if you want a cash offer for your house.
