Is it Best to Sell Your Home Before You Buy?fjpinvestment
The competition for houses in the UK is strong, and the shortage of available homes to rent and buy is an important contributory factor. For every property for sale, there will likely be multiple interested parties thinking about making an offer. Because of this, you will want to maximise your chances of being the one to secure the home of your choice. So, is it best to sell your home before You buy, and what can you do to boost your chances of not missing out?
Unless you are taking advantage of a booming UK investment environment and purchasing a property as a buy-to-let investment, it’s typically the case that you will be looking to sell your existing home. If the latter, it’s a good idea to place your property on the market now even before you have chosen your new house.
Why? It’s because most people selling their homes are looking for peace of mind when selling, and a buyer that has already had an agreed offer on their own property represents a better option. Buyers with an agreed sale will be much more attractive to sellers, and this will thus increase your chance of success when making an offer.
Securing a viewing
Some may feel that putting their own house up for sale before they buy is a risky scenario. However, when you think about it, you will see that there are good reasons to do it.
While surfing through the internet, you may come across a property that catches your eye and you get all excited, envisioning you and your family setting up a castle there. The chances are, however, that there will be others that have done the same thing with the same property and are also in a position to go ahead with the sale.
It’s not uncommon in today’s hectic housing market for sellers to reject viewings with potential buyers who haven’t yet started their own marketing of their property. For buyers that haven’t even gotten the ball rolling yet on selling their property, this can be viewed as a potential time setback for buyers.
“So don’t be surprised if, especially in sought-after areas like South-west London, you are turned down for a viewing if you are not in a position to buy,” said Jamie Johnson, CEO of FJP Investment. “Agents are very busy people, and homeowners will want to maximise the chances of a successful completion of a sale. Buyers already in a position to buy will likely be favoured over those that are not.”
Your offer will have greater weight
In a rising, competitive housing market with multiple people going after the same property, your offer will have greater weight and be taken more seriously if you have already sold, or are in the process of selling, your own property.
When competition for sought-after properties is fierce, securing a successful purchase is inevitably more difficult. If you have already sold your own property, or had offers made on it, you have a better chance of being considered as a potential “buyer.” Sellers will want to see offers that can be acted upon.
If you want your competing bid to stand out over others, having your own property primed for sale—”on the board,” so to speak will improve your chances of being selected.
Avoid the rush to sell
To secure the perfect home in a booming housing market, sometimes buyers will be tempted to place a high offer, adding extra pressure to an already stressful situation.
When this does occur, it typically happens to those that are in a rush because they aren’t prepared properly to sell their own house. To compound this unenviable situation, rushed buyers may end up frantically preparing their own property for the market and accepting a lower bid because they haven’t got the time available to them to wait any longer.
It clarifies your budget for purchasing your new home
In addition to placing you in a better position to buy, having your house already sold will also clarify your budget for purchasing your new home. This is especially useful in a booming market when house prices rise almost weekly. Having an accurate budget can help laser focus your attention on what you can afford and therefore choose the right property for your budget.
Having an extra £30,000 to play with in your budget because of the good price that your home secured, for example, can open new avenues for you that you wouldn’t have considered had you not been aware of your final budget. Going to the market as sold, clearly you will have a better idea of where you are headed.
Managing your situation after a good offer
If you have received an offer on your property that you just can’t refuse, a good agent will be able to manage the conveyancing process and buy you some extra time in finding your dream home by liaising effectively with the buyer. A buyer can be reassured and encouraged to be a little patient, something that should be fine in a market with good quality properties at a premium. By being upfront about wanting to find the right place first, managing the buyer’s expectations is made much easier.