September, 2022
Most people sell their current home at the same time as buying a new one, forming a property chain. Selling before you buy another home has risks, but it can also have great advantages.
When you sell before buying your next home, it puts you in a stronger position as a buyer. The seller you want to buy from would almost certainly prefer a buyer who has the cash in the bank (and/or a pre-approved mortgage) rather than enter a chain, where their sale is dependent upon you finding someone to buy your house
You are less likely to be gazumped. If you put in a decent offer the buyer is unlikely to take another if it means entering a property chain
You remain in control of the sale of your own house – because you won’t need to make a quick sale, you will not be pressured into selling cheaply
Those with time on their side are usually in the strongest negotiating position
You may get a better price on the property you are buying if you find a seller who is keen to move quickly
You will know exactly how much you can spend on the property you are buying because you’ll have the money from your sale in the bank – buying your new home won’t be dependent on you achieving the expected price on your existing one
If the economy is in a state of flux and it looks likely house prices will fall, then houses may get more affordable as you wait
If you sell first, expecting to be able to buy quickly after, you may be disappointed and instead have to rent for a time, which can prove costly
If prices are rising fast, by the time you’ve sold your house and sorted out somewhere to rent, a new house will be much less affordable.
Renting can be stressful, but being in a chain, being gazumped, or feeling you’ve undersold can be worse.
If you do sell before you buy, make sure as many things as possible are organised beforehand such as getting your mortgage pre-approved so you can buy quickly. This will make you even more attractive to a seller.
Being organised also helps to avoid delays.
Do your research before you sell. Decide what area you want to buy in, and what sort of property you want to buy
When you are ready to sell, decide what price you should sell for, compare the performance of local estate agents before short-listing and appointing an agent.
If you have had thoughts about selling your home and would like more information on what your home could fetch in the current market place, please feel free to contact the office on 0121 430 4448 or email us on enquiries@hshomesofsolihull.co.uk.
