| In the UK most house sellers do this: | | | | Ask yourself how much time you think you'll need. |
| 1. They start house hunting | | | | Then try andagree that period with your buyer. |
| 2. They fall in love with a property | | | | In return for your buyers patients you'll take your house |
| 3. They put in an offer (it's accepted) | | | | offthe market and promise not to sell to anyone else. |
| 4. They then have to rush to sell their current home in | | | | It's perfectly possible that you may not find a suitable |
| order toraise the funds needed to make their purchase | | | | home tobuy within the negotiated time period. Or you |
| Placing such pressure on making your sale is a risky | | | | feel that values havemoved on since you first agreed |
| strategy &in many cases it can lead to property | | | | a price & now your agreed saleprice is looking a |
| owners achieving a lowersale price than they actually | | | | little light. |
| deserved. | | | | In both these situation you and your buyer need to sit |
| | | | down andrenegotiate. |
| Selling a House Before Buying a House (Reason #1) | | | | If your buyer won't renegotiate you'll have to put your |
| "By selling before you buy you put yourself in a | | | | propertyback on the market & start again. This will |
| strongnegotiating position when dealing with | | | | sting a bit but itwon't sting nearly as much as |
| prospective buyers". | | | | underselling for £10K's. |
| This is true because: | | | | Some Help Timing Your Sale & Purchase |
| 1. Whenever you sell anything, the strongest position to | | | | Tip No.1 - Do Your Research! |
| be in,is when you're least need to make the sale. | | | | Before putting your property up for sale make sure |
| 2. If you've not fallen in love with a new property - had | | | | you know: |
| youroffer accepted - need to sell quickly to raise the | | | | - Where you want to move? |
| funds neededto complete on the purchase - then you | | | | - What type & spec of property you're in the |
| can't be pressurised into selling before the right offer | | | | market for? |
| comes along. | | | | - If that kind of property often comes up for sale? |
| 3. You remain in control of the pace of your sale. | | | | - That you're pre-approved for a mortgage? |
| You're free todecide when & who you'll sell to. | | | | - That the properties you'll be interested are |
| 4. It won't matter if your home doesn't sell as quickly | | | | affordable? |
| as youthought. You're free to hold out for best price. | | | | Next thing to do is put your property on the market |
| | | | & wait fora decent offer. |
| Selling a House Before Buying a House (Reason #2) | | | | Once you've snared a buyer (or have started to |
| "By selling before you buy you put yourself in a strong | | | | attract a steadystream of positive viewing) start your |
| positionwhen making offers to vendors. You'll be a | | | | house hunting efforts inearnest. |
| preferred buyer". | | | | Really put yourself out there, hassle estate agents |
| This is true because: | | | | constantlyand make yourself available to view every |
| 1. You'll be a chain-free buyer and so the buyer that | | | | (& any) suitable property. |
| ready andable to proceed immediately. | | | | Tip No.2 - Choose a Good Conveyancing Solicitor! |
| 2. A seller will gladly take his property off the market if | | | | A good conveyancer is: |
| hereceives a decent offer from you... | | | | - Someone you can talk to. |
| If he's trustworthy that means you'll no longer have to | | | | - Someone who takes the time to understand your |
| worryabout being gazumped. | | | | personal situation. |
| (There is nothing worse than finding that dream home | | | | A good solicitor will help you control the pace of a |
| and thenhaving another buyer out-bid you at the last | | | | transaction. |
| minute). | | | | They can speed things up when needed but more |
| 3. You'll be able to offer less money on the property | | | | importantly theycan slow things down if you need |
| than a buyerthat still has a property to sell. | | | | more time to find that new home. |
| Beware! Selling Before Buying is Not Risk-Free | | | | When you're selling property your solicitor, not your |
| Here are the 2 main risks associated with selling first: | | | | Estate Agent |
| 1. If prices are rising fast, selling and then taking a | | | | (if you bother to use one), will be your greatest asset! |
| longtime (3 - 4 months) to find a new home can spell | | | | Read our Conveyancing Reviews at: |
| disappointment. | | | | >> |
| This is because prices may have risen to such an | | | | The Dangers of Buying Before You Sell |
| extent thatyou're priced out of the market. | | | | First of all, expect to be gazumped (you are now in |
| You need to get a grip on what prices are doing in | | | | the situationwhere it is most likely to happen). |
| your area. | | | | Second of all, expect to pay over the odds to secure |
| Ask Estate Agents for their opinion & get | | | | the houseyou want! |
| research from websitessuch as HomeTrack & | | | | Of course you may get lucky and avoid both these |
| HousePriceCrash. | | | | things. But askyourself this: |
| 2. If you sell and can't time your purchase to perfectly | | | | "Would you take your house off the market for a |
| overlapyour sale, you may have to rent for a period. | | | | buyer that stillhad to sell their house (i.e. a buyer that's |
| Most seasoned sellers don't mind renting. They've | | | | not really ready tobuy)?" |
| been part ofa chain before and know that renting | | | | Wouldn't that buyer have to offer you more money |
| (although mildly irritating)is in reality a far less stressful | | | | than someonewho was ready to proceed |
| proposition. | | | | immediately? |
| Modern removal companies make these "double | | | | Thirdly, you'll have to take out a Bridging Loan facility |
| moves" easy. Theytake your belonging and safely put | | | | inorder to finance your purchase & this will be: |
| them into discount storagewhile your renting. When | | | | 1. Expensive. |
| you've found your new house the removalscompany | | | | 2. Financially potentially pretty risky. |
| will collect your belonging & bring them to your | | | | Typically your repayments will be between 0.75% - |
| new home. | | | | 1.25% of theloan amount (per month) + fees. That can |
| What to Do if You Really Don't Want to Rent | | | | add-up quickly. |
| If you're not prepared to rent for any length of time | | | | If you can't sell your property & have to pay-off |
| you'll haveto make it clear to buyers that you'll only | | | | your mortgage |
| accept their offer onthe condition that you find a | | | | & bridging loan for any sustained length of time it |
| suitable property to buy. | | | | can becrippling. |