Should I sell my home before I buy a new one?

Should I sell my home before I buy a new one?

Most people sell their current home at the same time as buying a new one, forming a property chain. Selling before you buy has risks, but it can also have great advantages

 

Advantages of selling before you buy

  • It puts you in a stronger position when buying. 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 pressurised into selling cheaply
  • Those with time on their side are usually in the strongest negotiating position
  • You may get a better price if you find a seller who is keen to move quickly
  • You will know exactly how much you can spend 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 prices are falling, then houses get more affordable as you wait

 

Disadvantages

  • 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 very 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. For example, if you rent for a year, and prices rise by 10% in that year, then you will only be able to afford 10% less

 

Renting can be stressful, but being in a chain, being gazumped, or feeling you’ve undersold can be worse.

 

For more information or to have a chat about buying or selling your home, please feel free to give our team a call on 0116 216 2096 or e-mail us at sales@heartland-properties.co.uk

 

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