“Should I sell my home before buying a new one?” is one of the most commonly asked questions when people are looking to move home. There are small risks, but some great advantages! Read on to find out some of the advantages and disadvantages:
Advantages
- If you have already sold your property, it puts you in a stronger position when buying a new home. The seller of the property you want to buy will almost certainly prefer a buyer who has the money readily available in the bank (and/or a pre-approved mortgage) rather than a situation where their sale is dependent upon you finding someone to buy your home.
- You are in a stronger position when it comes to selling your own home. You are in control because you won’t feel forced into making a quick sale or pressurised into taking a lower offer
- Buyers with time on their side are usually in the strongest negotiating position
- You may attract a higher price for your home if you find a seller who is keen to move quickly
- You’ll know exactly how much you can spend on your new property because you’ll have the money from your sale in the bank, so buying your new property won’t be dependent on how much you achieve from your existing one.
Disadvantages
- There’s a chance that If you sell first, expecting to be able to buy quickly, you may be disappointed and end up having to rent for a time. This can prove very costly if weeks turn into months.
- If house prices continue to rise by the time you’ve sold your house and find somewhere to rent, a new house may become much less affordable e.g., if you rent for a year, and prices rise by 10% in that year, you will only be able to afford 10% less
Renting can be stressful, as can being in a chain, or feeling you’ve undersold. Here are our top tips to ensure a stress free move
Tips
- If you do decide to sell before you buy, ensure you have as many things as possible organised that could make the next step simpler, i.e. have mortgage approved in principle so you can crack straight on once your sale has been settled.
- Before selling, do your research and decide what area you’d like to buy in, which type of property you want to buy. Know your budget so you are not looking at properties that exceed the price you’re likely to get from the sale of your own home.
- While you’re selling your own home, keep your eye on the property marketing incase the home of your dreams appears. You’ll have time while waiting on your own to sell so use it wisely.
- Before selling, build relationships with a few of your local estate agents so that you get in there first with all good properties that come up for sale. Sign up for property alerts so that as soon as something fitting the bill goes onto the market, it’ll be delivered straight into your inbox so you’ll be one of the first to see it!
- Before selling, get your mortgage on the new home pre-approved, this will make you very attractive to a seller.
- If you are selling, but not yet found a home you want to buy, try to act as slowly as possible between agreeing an offer and exchanging, then between exchanging and completion. This will give you additional time to find and make an offer on a new place in the meantime.
If you are selling and need a Home Report carried out, we can help! We provide Home Reports across Scotland – including Edinburgh, Glasgow and Aberdeen – at a time that suits you. Call us on 0131 608 0175 or email us at info@homereportcompany.co.uk
