Selling My Home

When you decide to sell your home it usually means you will be looking to buy another " You have to live somewhere ".

A common question is ‘should I sell my house first or buy first?’ There are pros and cons in both scenarios.

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The concern maybe if you sell first you may end up homeless for an extended period, that is if there is a shortage of suitable homes to buy in the area to where you wish to move.

While you can always rent, this means that you will probably need to pay double what your current mortgage repayments are to cover both residences.

Of course, you might be able to move in with parents or in-laws but this stop-gap will not be available or appropriate for everyone but it’s not all doom and gloom.

Why Sell My Home First

• You’ll be in a stronger negotiating position if you are not desperate to move in to the new home.
• You can keep control over the pace of your sale
• There is still a chance you can purchase in time to move and not have to pay for two properties
• You’ll have money in the bank ready to go when you do decide to purchase
• You will be a seller’s preferred buyer if they know you are ready to proceed immediately. They may even hold their property for you if they get the right price

Why Buy a Home First & then Sell

• If housing prices start going up sharply, you may not be able to afford the level of property you thought you could when you sold.
• If interest rates are going up, you might be able to secure a loan – should you need one – at a better rate than if you waited a few months.
• If you do need to rent you should be able to find a removal company that can store some of your items until you need to move again.
• You may be able to negotiate with your buyer about how long you can stay in the home and in return you can take it off the market. In this case you can have your solicitor draft it into the Contract Of Sale.

The risks of trying to Buy a home before you sell

• You are vulnerable to being ‘gazumped’ if the seller (vendor) isn’t prepared to wait for you to sell your home.
• You may be forced to pay more than you can afford to secure the home you want to buy – because you’ve left yourself no time to for negotiation.
• If you need to secure a ‘bridging loan’ you could end up having to pay your mortgage and a bridging loan for an unspecified amount of time.

If you intend to sell your home first but don’t want to rent, a good real estate agent plus a conveyance solicitor who understands that what you plan to do will be invaluable.

An experienced solicitor will listen to your concerns and your requirements and draw up an agreement of terms accordingly.

Look for an experienced conveyance solicitor that you can meet face-to-face and who offers a service guarantee.

It might be a good idea to ask for a fixed fee because solicitor’s costs can climb fast !