Should I sell my home before I buy?
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
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 chain, where their sale is dependent upon you finding someone to buy your house
- You are less likely to be gazumped. If you put in a decent offer the buyer is unlikely to take another if it means entering a property chain
- 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 pressurised into selling cheaply
- Those with time on their side are usually in the strongest negotiating position
- You may get a better price if you find a seller who is keen to move quickly
- 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
- If the economy is in a state of flux and it looks likely house prices will fall, then houses get more affordable as you wait
Disadvantages
- If you sell first, expecting to be able to buy quickly after, you may be disappointed and instead have to rent for a time, which can prove very costly
- If prices are rising fast, by the time you’ve sold your house and sorted out somewhere to rent, a new house will be much less affordable. For example, if you rent for a year, and prices rise by 10% in that year, then you will only be able to afford 10% less
Renting can be stressful, but being in a chain, being gazumped, or feeling you’ve undersold can be worse.
Tips
- If you do sell before you buy, make sure as many things as possible are organized beforehand such as getting your mortgage pre-approved so you can buy quickly. This will make you even more attractive to a seller. See our step-by-step guide to buying and selling at the same time to help you
- Being organised also helps to avoid delays. See how long it takes to buy and sell.
- Do your research before you sell. Decide what area you want to buy in, and what sort of property you want to buy
- When you are ready to sell, decide what price you should sell for, compare the performance of local estate agents before short-listing and appointing an agent
Find and Compare Local Estate Agents
This form will take you to www.estateagent4me.co.uk for the results- Consider whether online estate agents are an option for you and compare ratings and packages from online estate agents
- 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 relationships with a number of estate agents before you sell, so that you get in there first with all good properties that come up for sale
- 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
- How to buy and sell at the same time
- Step-by-step guide to selling your home
- What price should I sell my house for?
- Top Tips: How to make your home more valuable and sell faster
- Can I take my mortgage with me?
- How should I choose an estate agent?
- Compare online estate agents
- The legal side of buying a home explained
- Costs of buying and selling
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I sold my property in July 2018 but due to various health issues..and now COVID…and prices increasing….my search for my next permanent home is still ongoing. I am now worried as I have been told that if I don’t buy within 3 years of my sale I will be charged more in stamp duty. Is this true ?
We have no mortgage and house is valued at £150K – we want to put an offer in on an auction property of £250K so need a new mortgage for £100K. Can we get a mortgage for this amount and a bridging loan until we sell our property? Is this an easy thing to do?
Hi. My daughters house has been sold to someone not in a chain, the problem is my daughter is buying a new build which won’t be finished till the end of February but her buyers want her out by end of November so their mortgage offer is still in place and want my daughter to rent her own house that has been solduntil end of February but worry about complications that could arise there is talk of a short let contract. What are your thoughts in my daughter and her family taking on a short let on her own house
Can I sell my house and then stay as a tenant for 6 months? I can pay my mortgage so am not looking at selling low to a company because I am struggling more I am moving cities in the summer but would like to take advantage of the market whilst the prices are high.
Many thanks
Hello,
If you first home is mortgage free and you want to buy a second home as a main residence, do you still need to pay the extra Stamp duty rates?
Thank you
Are there any tax implications of a gap between selling and buying – if selling main residence and no second property involved? Assuming not?
Hello Anthony, if you’re asking about Stamp Duty Land Tax, it’s only a consideration when buying, so if you’re selling your property and not buying another you won’t have to pay Stamp Duty Land Tax.
excellent opinion… when we buy a house then selling before buying is good for us because it puts us strong financial position. as you have adequate cash with you this will help you to buy a better house than before. i loved this article and i will surely share this article with others.
What are the taxes I should consider if I want to buy a property out of my area now before I put my house on the market? Would you advise someone with money [small amount of cash + mortgage] to buy a property first then slowly move into that property while the main property is being cleared up in preparation for putting it on the market to sell? Is that a good idea? Can I get a short term mortgage?
Hello Maria, thanks for your questions. If you were to become a member, we’d be happy to look into this for you as we can provide you with access to our Home Helpline where you can speak to someone in more detail https://hoa.org.uk/homeowners-alliance-membership/
You might also want to look at our information on mortgages here https://hoa.org.uk/services/mortgage-service-from-london-country/