Should I Sell My Home Before Buying 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.  Having your current home on the market definitely increases your chances of getting the next house you want....and could possibly save you money!!

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 domino sortof effect, where their sale is dependent upon you finding someone to buy your house
  •  If you put in a decent offer the seller is less likely to take another offer if it means entering a property dominoes game
  • 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 pressurized into selling for less, just to get the home you want now.
  • Those with time on their side are usually in the strongest negotiating position
  • 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
  • You have the opportunity to sell and purchase in the same market conditions, there is always a portion of the legal contract that can protect you from having your home sale finalize before your new purchase does.

Tips

  • If you do sell before you buy, make sure as many things as possible (mortgage etc) are organized beforehand so you can buy quickly
  • Do your research before you sell. Decide what area you want to buy in, and what sort of property you want to buy
  • Keep an eye on the property market while you are selling just in case that perfect house comes along. You’ve got time so you might as well use it
  • Develop a close relationship with your real estate agent before you sell, so that you get in there first with all good properties that come up for sale
  • Get your mortgage pre-approved. This will make you even more attractive to a seller
  • Try and slow down the selling process, by agreeing a longish period between agreeing an offer and exchanging, and between exchanging and completion. This might give you enough time to buy a new place in the meanwhile.

Ready to list your home and start the search for the next?  Don't hesitate to contact me to discuss our current market, and the options available to you!

Joleyne

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