It is easy to understand the temptation to find your dream home first. Nobody wants to sell, move out and then discover there is nothing suitable available. But waiting can create a different problem. You may find the perfect property only to discover the seller prefers a buyer who is already in a position to move.
There is no single right answer. Your finances, local market, mortgage and appetite for temporary accommodation can all affect which route makes most sense.
Should You Sell First?
Getting your current property on the market before seriously looking for your next home can put you in a stronger position.
Once you have an offer agreed, you have a much clearer idea of how much money you will have available for your next purchase. You can look at properties with a realistic budget rather than basing everything on what you hope your home might sell for.
More importantly, when you do find somewhere you want, the seller can see that your own move is already progressing. Someone who has a buyer lined up is generally in a stronger position than somebody whose property has not yet reached the market.
That can matter when a popular home attracts several offers.
Why Being Chain-Free Can Help
If you go one step further and complete your sale before buying again, you remove yourself from the lower part of the property chain altogether.
This can make you particularly attractive to sellers. You no longer need another transaction to complete before you can buy their property, which reduces one of the common uncertainties in a house move.
It may even give you greater negotiating power. Imagine a seller receives a slightly higher offer from someone who still needs to sell their own home, alongside another offer from a buyer who is chain-free and ready to proceed. Depending on the seller’s circumstances, certainty may be more valuable than squeezing out the last few thousand pounds.
It can also give you breathing space. Instead of feeling pressured to buy something because your own buyer is waiting, you can concentrate on finding a property that is genuinely right for you.
The Downsides Of Selling First
Of course, selling first creates one obvious question: where do you live while looking for your next home?
You may need to rent temporarily, stay with family or arrange another short-term solution. That can mean rent, storage costs and potentially moving twice.
There is also no guarantee that the property you want will appear immediately. A few weeks between moves could easily become several months, particularly if you are searching for something quite specific.
Property prices can move too. If values rise after you sell, you could find that your next home costs more than expected by the time you are ready to buy.
For families with children, pets or lots of belongings, those practical considerations can make selling first much less appealing.
Buying And Selling At The Same Time
Most homeowners still sell their current property and buy their next one at roughly the same time. This creates the familiar property chain, where each sale depends on another transaction completing.
The obvious advantage is convenience. Ideally, you complete the sale of your existing home and purchase your new one on the same day, moving directly from one property to another.
The downside is that there are more moving parts.
A mortgage delay, survey problem or buyer pulling out further down the chain can affect several people. The longer the chain becomes, the more opportunities there are for something to slow the process down.
This is why your buyer’s position can be almost as important as the amount they offer.
Don’t Forget About Your Mortgage
Your existing mortgage deserves some attention before deciding which route to take.
If you have a good fixed-rate deal, you may be able to port the mortgage to your next property. However, porting is not automatic. Your lender will still need to approve the new property and check that you meet its affordability requirements.
There may also be early repayment charges if you sell before your existing mortgage deal ends.
If you plan to sell and then wait before buying again, check whether your lender places a time limit on porting. Leaving too large a gap between the sale and purchase could affect your options.
Knowing your outstanding mortgage, likely equity and future borrowing ability before house hunting can prevent unwelcome surprises later.
Could Selling First Strengthen Your Offer?
Very possibly.
When sellers compare offers, they do not only look at the price. They may also consider whether the buyer has a property to sell, whether that property already has a buyer and how complicated the chain looks.
This is particularly important if the seller wants to move quickly.
A buyer who already has their own sale agreed can therefore sometimes beat someone offering slightly more but who is much further behind in the process.
The strongest buyer is not always simply the highest bidder.
Which Approach Is Right For You?
If avoiding temporary accommodation is your main priority, buying and selling together may suit you better. You can coordinate the transactions and, if everything goes smoothly, move directly from one home into another.
If your priority is being in the strongest possible position when you find your next home, selling first has clear advantages.
There is also a sensible middle ground. You can put your property on the market, secure a buyer and then concentrate more seriously on finding your onward purchase. This gives you a much stronger buying position without necessarily completing your sale before you have somewhere to go.
Whichever route you choose, it helps to think about the whole move before starting. Understand what your current property is realistically worth, check your mortgage position and decide how flexible you could be if the timings do not line up perfectly.
A good estate agent should help you manage both sides of that decision rather than simply concentrating on getting your property listed.
If you are considering moving home, Yorkshire Residential can help you understand the likely value of your current property, your position in the local market and the best way to approach your sale before you begin searching for your next home.
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