Normally people sell their house at the same time as looking for, or putting an offer in, on another property. This forms a chain. However, in some situations people decide to sell before they buy another property. Whilst this can be risky, it can also have its advantages.
Selling your property before buying another means that you’ll have cash in the bank once you find a property you want. If you also have a pre-approved mortgage then you’ll be in an even stronger position when it comes to buying. Because you’re not in a chain, you’ll be more desirable to a seller who may be wanting to complete quickly.
If you’re selling your property before buying a new one, you won’t need a quick sale, therefore you can wait for the right price. The same can be said for when you are ready to buy – house prices may have dropped, meaning you’ll get a better deal on your next house. You can also try to slow down the selling process by agreeing a specific period of time you’re happy to wait before agreeing an offer and, then again, before exchanging and completion.
Having said all of that, we should also mention the potential down-sides of selling before you buy. There’s a chance you will have to rent until the right onward property comes along and this can be expensive. It would be much more cost-effective if you could stay with relatives or friends until you’re ready to buy, but make sure you give yourself (and them!) a realistic timescale for this so it doesn’t affect your relationship.
There’s always the possibility that house prices might rise whilst you’re looking for a new property. This could mean that you can’t afford to buy the house you want when it comes down to it.
By being organised, doing your research in the areas you want to live and having a mortgage already agreed, you should be able to buy your next home fairly quickly for a decent price. If taking your time is your desired route then use that time wisely by keeping an eye on the property market and building relationships with estate agents in the area you want to buy. By doing this, you can swoop on the right property at the right time because you’re informed.
This can be a stressful option for some, but, if you have enough of the above in place, then you should get a good deal and a new home in a reasonable timeframe.
If you decide that selling on the open market is not what you want to do and you feel that selling quickly is a better option then The Property Buying Company can help. As cash buyers, we can buy your property in a timescale to suit you and all of our legal fees are included so there are no hidden costs.