How to handle property chains?

We have all experienced property chains in buying, selling or even renting a property. They are part and parcel of the process.  Dealing with property chains may be a frustrating experience; nonetheless, there are situations in which it is unavoidable. First-time buyers should learn about property chains as well as how to handle them to avoid tricky circumstances when purchasing a property.

What exactly is a property chain?

The term “property chain” refers to a series of buyers and sellers interconnected by the fact that each is selling and purchasing a property from one of the others.  Those at the start of the chain need to wait for the people to move out before they can move in.  Those at the end of the chain can hold up the whole process. Simply said, a property chain is when many market participants are connected by a shared goal: relocating. It’s important to remember that every buyer and seller is a part of a larger chain, and they all rely on one another for their transactions to succeed.

This is also true in renting as well as buying. The rental chain depends on tenants moving out on their agreed contract date so the next tenant can move in. If the tenant does not move out in a timely manner, it can delay everything for everyone else. 

How should property chains be handled?

It’s critical to get your financial house in order before making a real estate purchase. According to a recent survey as mentioned in Love Property, one out of every 10 property chains fail because the buyer is unable to get the necessary finance during the closing phases of the transaction.

Make sure you’re in charge of everything, from organising appointments to staying on top of paperwork to catching up with communications.  In addition, maintaining communication amongst the participants in the chain is mostly the responsibility of the experts who are working in the industry. As a result, it is critical to hire the right people from the beginning.

The stronger you are able to establish and maintain connections with the people who are a part of your chain, the more equipped you will be for anything that may arise. Take use of the strong connections you’ve already established by giving your assistance to anybody who needs it with their own business dealings.