True Cost of Property Chain Can Be Over £40,000

18th May, 2006: National Homebuyers, the country’s leading consumer facing property purchasing company, today announced the results of research confirming that selling the average house through the traditional chain process could cost as much as 22% of the value of the property, or £44,575.39.

Based on figures from bbc.co.uk, HM Treasury, The Office of National Statistics and Hometrack, National Homebuyers have found the costs of selling property through the traditional chain model are much higher than publicly perceived. The results combine the costs of estate agents fees and solicitors fees added to the ‘hidden costs’ of selling your property – the ‘opportunity cost’ of what you could have been doing with your time - as well as other considerations.

The research figures included:

Average UK property: £205,674 (Hometrack)
Average mortgage monthly payment: £639.50 (Office of National Statistics, HM Treasury)
Average UK salary: £22,422.40pa (Office of National Statistics)
Average number of viewings per offer: 11.2 (Hometrack, March 2006)
Average time to sell a property: 7 weeks (Hometrack, 2nd May, 2006).

Based on property chain sales falling through one in three times (bbc.co.uk), the result has been set out in three outcomes – a direct sale, as well as the chain falling through once and twice. Detailing a comprehensive list of costs of the time involved in selling the house, as well as housekeeping to a sale standard, dealing with estate agent valuations and viewings, and changing the price to speed up the sale once the chain has fallen through, the results were as follows:

Average UK property: £205,674 (Hometrack)
No chain break (66% chance) £21,243.05 – 10.3% property value
One chain break – purchaser withdrawal: (33% chance) £32,903.34 – 16.0% property value
Two chains break – purchaser withdrawal: (11% chance) £44,575.39 – 21.7% property value

For the full results of the research, Click Here.

David Harber, Communications Director for National Homebuyers said; “This research details the true cost of the inefficiency of selling your property in the open market.

One issue is that when deciding how to sell their house, few people account for the opportunity cost – the monetary value of their own time in that process. National Homebuyers encounter people every day, and help them sell their property, that have not factored the hidden costs as well as the fallibility of the chain. Effectively, we enable people to break the chain, putting them in a stronger situation to buy their new property.”

For more information, please contact Neil Hunter, PR Manager, National Homebuyers, 01444 257111, or neil@nationalhomebuyers.co.uk.

Editors Notes

National Homebuyers is the largest UK consumer facing property-purchasing company, offering a complete home purchasing service. Their mission is to help homeowners sell their homes as quickly as they require, removing as much stress as possible.

National Homebuyers guarantee to make an offer to buy any property, residential or commercial, regardless of condition, state of repair or location. They will make an offer regardless of personal circumstances of the vendor.

National Homebuyers operates in a totally transparent way, being the only company using independent RICS Chartered Surveyors to gain a genuine value on properties.

For more information, please visit www.nationalhomebuyers.co.uk