What is a Proceedable Buyer?
You’ve just started looking and you find your dream home. You view the property, love it even more and make an offer that you’re sure they can’t refuse. But there is one problem, you haven’t even seen a mortgage advisor yet. You lose out and the estate agent says ‘your offer wasn’t accepted because you are not proceedable’. An unfortunate but common tale, all too often buyers look for a property before they’ve even thought about the logistics of buying and often lose out on their dream property. So, if you’re thinking about purchasing a property, become a proceedable buyer first.
But what is a proceedable buyer I hear you ask? In short, it’s a term used to refer to a person who meets the required criteria by a vendor to choose as their buyer and to accept their offer. There are many unique cases of a proceedable buyer, but here are some common examples.
- Someone who has their current property on the market and have accepted an offer (ideally from another proceedable buyer)
- A first-time buyer (FTB) and having a Decision in Principle (DIP) from their lender
- A cash buyer who has the funds available to make a house purchase and can provide proof
Ultimately the most proceedable buyers are first-time buyers with a DIP or cash buyers due to not being in a property chain.
When a property chain is introduced, things can become more complicated. Sometimes even if you have accepted an offer on your current property, if your buyer is not in a proceedable position (i.e. they must wait on their buyer to progress) then you are also technically not proceedable as you are relying on your house sale to purchase your new property and could be delayed by your buyer. Whilst this sometimes can be unavoidable however, if you have the choice in who you sell your current property to, it can be advisable to go for the most proceedable buyer, even if that means a lower sale price. Whilst your estate agent should advise on a scenario like this, it’s always important to be aware of the importance of finding the most proceedable buyer.
What could happen if I accept an offer from someone who is not proceedable?
Accepting an offer from someone who isn’t proceedable creates a riskier sale and has a greater chance of falling through. For example, your buyer is unable to find a buyer for their property, an FTB is unable to get the mortgage amount they hoped for, etc. In the case of a property chain, the sale becomes open-ended and can become horrendously complex. If there’s an issue somewhere lower in the chain one that causes a delay for everyone within the chain then your sale could keep getting pushed back and result in your purchase falling through.
If you do find yourself in a property chain, which is likely, then don’t worry. The most important thing to do is be as pro-active as possible and anything that’s required from your solicitors, estate agent, buyer or vendor of the property you are purchasing, make sure you do so as soon as possible. It will help rule out any unnecessary delays in the chain. Oh and good communication is absolutely key!
Struggling to find a proceedable buyer for your property?
We’re here to help, give us a call today on 01454 316 718 to arrange your free no obligation market appraisal.