Should I sell my home before I consider buying?
If you have ever been in a property chain, you will understand the problems; the first thing the estate agent will ask you is what position are you in? it’s because they know that a buyer with no property to sell is fantastic for them, so selling your home before you look to buy has obvious advantages, we look at the potential problem you may have if considering this.
The advantages of selling your property before you buy.
The main advantage is that it puts you in a strong position, sellers want a buyer that has nothing to sell so you are gold dust and as such you will be in a better position to negotiate.
Because you are not buying straight away it also puts you in a strong position when selling your home, if you are lucky enough to find someone that wants to move quickly you can drive a hard bargain on the price because you are in a position to move quickly, so the money you will pay in rent will more than be made up through the negotiation.
- When prices are rising quickly you stand to lose out if it takes a long time to find what you want, but at the moment that is not the case in many parts of the country, in fact, some regions are reporting that house prices are falling, in this scenario it will work to your advantage.
The downsides of selling your property before you buy.
- You may be renting for some time, and with recent rental law changes you may have to take a longer rental agreement than you want, and breaking that agreement can prove costly.
- When prices are rising you could lose out, but that does work both ways as mentioned.
- You will have to move twice, once into your rental home and then into your new one.
There are no guarantees that you will not find yourself in a chain anyway, you’re just the end of it.
The idea of renting may not suit everyone but keep your eye on the prize, renting for a short period will put you in an excellent position.
Advice on selling your house before you buy.
The thing is with buying and selling your house you will never know how it’s going to proceed. You may decide in the beginning that you are going to sell first then look around but you may end up buying and selling at the same time, so be prepared.
Make sure you are ready to buy if you need to, don’t wait till you are in rented accommodation to sort out your mortgage, get it pre-approved before you sell.
Research the rental market so you know where you want to go, if you have to take a year-long lease look at alternative places to stay, holiday homes perhaps, but be careful as this may only work over the winter months (not summer, as prices tend to be higher) and if you have to move again that will not be fun.
Once you have a buyer slow the process down a little, don’t be in a rush see if you are able to line up your purchase.