Whether you’re buying or selling your home, it’s important to consider all the factors that may impact your transaction such as where you sit in a property chain.
Chains can appear overwhelming, but with enough preparation and organisation on your end, they can run smoothly and end in a positive result for everyone.
What is a property chain?
A property chain is created when a group of buyers and sellers are connected, with the respective transactions depending on each other, and needing to occur at the same time.
For example, a property chain could look like this:
- First time buyer – At the start of the chain, only buying.
- Homeowner – Selling their home to a first-time buyer and purchasing a new home from a retiree.
- Retiree – Selling their home to the homeowner and moving in with family.
Is there a risk to being in a chain?
A chain will only progress at the same rate as its slowest link and if something goes wrong, it can impact the rest of the chain. A break in a chain can happen if someone changes their mind about selling or buying, experiences a change in their personal circumstances or fails to obtain the mortgage they need.
Being part of a chain can feel unpredictable as a break in the chain often means having to restart the buying or selling process, which can lead to a financial loss. However, if the break occurs on your level, you may be able to save the situation by revisiting previous offers.
To reduce the risk of your property chain breaking, planning ahead is key! Be as prepared as possible by ensuring your finances are in order, securing a firm mortgage offer, and maintaining communication with your solicitors and estate agents like our team at Thomas H Wood – we’re here to help!
In some cases, choosing a rental property would be a stable option to keep you in a holding property until you organise your next move.
What happens if there’s no chain?
If there is no property chain, houses or apartments are often referred to as a ‘chain free property’ or a property with ‘no onward chain’. This is when the property does not rely on any other transactions to happen before its sale and purchase can go through.
Examples of a chain free property include:
- First-time buyers purchasing a new build.
- Buying a vacant or repossessed property.
- Part-exchanging your current property to a developer.
This is usually seen as advantageous over a property chain transaction as there is a significantly lower chance of the deal falling through as there are no external groups to rely on.
On average, a property chain can take a few months to reach completion. The longer the chain, the longer it will be until you get the keys to your new home.
How Thomas H Wood can support buyers and sellers (with and without chains)
As estate agents, we play a crucial role in the property chain and our primary goal is to ensure smooth and seamless transactions for all involved. With over 50 years’ experience of selling homes in Whitchurch, Radyr and the wider Cardiff area, we know the process like the back of our hand and our experts are here to guide you, no matter how long the chain.
From arranging photography and viewings to liaising with solicitors, financial advisers, banks, surveyors and more, we can support buyers and sellers with or without chains with our extensive services and incredible customer service.
Get in touch or visit us in branch to start your property journey.