When it comes to putting your home on the market, selling before buying is a key consideration that is commonly overlooked. While selling a property before finding your next has its risks, there are some great advantages to cutting out the chain and getting one step ahead of competition…
Key advantages of selling before you buy
- Being able to offer a chain-free transaction immediately places you in a stronger position as a buyer, especially if the seller is looking for a speedy sale. Your offer may be more attractive as someone who will already have cash in the bank from their sale – and possibly a pre-approved mortgage – rather than someone attached to a chain, where their purchase is dependent on their house being sold first.
- Having money in the bank from your sale means that you will be able to budget appropriately and have a clear idea about exactly how much you can spend on the property you are buying. In other words, buying a new home won’t need to depend on achieving a specific price for your existing one.
- You are also less likely to be gazumped if you put in a decent offer, as the buyer
is unlikely to take another if it means entering a property chain. - Those with time on their side are in a strong position for negotiating.
- As a seller, most of the power will be in your hands due to not needing to sell in a hurry, so you will not feel pressured into accepting an unsatisfactory offer. There’s also the chance of achieving a better price on your property if you find a buyer who is eager to move fast – which most people are!
The disadvantages of selling before you buy
- Selling before you buy commands a specific set of circumstances, and you shouldn’t choose this route unless you are financially prepared for delays in buying a new house. While buying quickly after selling is possible, you may have to wait longer than expected and instead have to rent
for a time, which can prove costly. - If house prices are on the rise, the window between selling and finding a new house will need to be relatively small lest your desired house becomes much less affordable, especially after paying rent over a long period. For some people, staying with family may be a better option, but keep in mind that this arrangement will need to be feasible and comfortable for the long-term – just in case of any lengthy and unanticipated delays.
- It should be noted that renting or staying with family can be stressful, but being in a complicated chain, getting gazumped or realising you have undersold could be even worse. It’s important to weigh up your options and priorities before coming to a decision.
Tips for selling before you buy
- If you are planning on selling before you buy, it’s important to ensure that you are taking a proactive approach and that you have everything organised in case something doesn’t go to plan. For example, you should check whether you can port your mortgage so you can buy quickly, as this will put you at an even greater advantage as a buyer.
- Being organised and ready will also help you avoid delays, which will be endlessly beneficial when you go to buy your new house.
- While you may not be looking to buy yet, you should pre-emptively research before selling. You should at least decide on which area you’d like to buy in, and the type of property you’re looking for.
- Pay close attention to the property market while you are selling just in case the ideal house comes along.
- Develop a strong relationship with your estate agent before selling, as they will come to you first about any good properties arriving on the market.
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