It is swings and roundabouts as they say, whether to sell before you buy another property. Advantages, can be had in doing this, but there are also associated risks. It is a balancing act, and one you must yourself decide upon. Many people do sell their current property, while buying a new one, although it could prove stressful. This is known as creating a property chain.
Advantages for completing a sale before you buy
* You could get a better price, if a seller is found and wants to move quickly.
* You have the upper-hand, and in a better position to buy. The seller, would much prefer a buyer who has ready cash available in the bank. Rather, than entering into a chain, where you have to find a buyer for your property in order to proceed.
* You have the control on the sale of your own house. You aren’t desperate for a quick sale, and the price doesn’t need to be correspondingly dropped for a fast sale.
* You are in a strong position to negotiate a fair price.
* There is a lesser possibility of being gazumped. Buyers are more likely to steer clear, if it means they are part of a chain.
* There will be ready money in the bank from your house sale. You won’t be dependent on selling your existing property to buy your new home.
* Houses get more affordable if you wait, and don’t have to rush into a sale, if the house prices are falling.
* You may have to rent for a while, which will be costly. If you are lucky to sell your property first, and then disappointed, and delayed in choosing a new suitable home.
* Prices may rise surprisingly fast. Taking into consideration the fact you may have to rent after you’ve sold your property, with added costs. A new house may put a strain on your finances, and make it less affordable. If you rent for a year as an example, and house prices rise by 5 percent in that year, your finances, will have been depleted and you will only be able to afford 5 percent less.
To rent a property, is stressful and expensive. Achieving the upper hand, and being free of a chain, less likely to be gazumped or not achieving full market value, could be a harder prospect.
Points to consider
* Selling a property, needs to be researched thoroughly, what type of property you require and in which area.
* Your mortgage, needs to be pre-approved. Once this is sorted you will be taken more seriously by a seller.
* Look at the property market. That perfect house, may be round the corner, you’ve got time, so use it well.
* Make contact with local estate agents, before you sell your property. So they are aware, that you are looking for a new home.
* The selling process, could be slowed down, and a lengthy time between agreeing an offer, and completion delayed. This might afford you time to buy home.