Those looking for a property to buy are often facing the process of selling and buying a house at the same time.
Whilst it is a perfectly normal scenario, and one that most home movers must navigate, it can be a complicated and sometimes stressful scenario.
As buying agents, Garrington works closely with their clients when looking for a new house to buy and are usually on hand to offer guidance on any related property sale.
Having many years of experience assisting clients in a chain, liaising with other professionals to ensure a successful conclusion, our property finders can provide expert advice.
Here we highlight the challenges faced by those selling and buying a house at the same time and share tips for ensuring the process runs as smoothly as possible.
Is it possible to buy and sell a house at the same time?
Yes, it is possible to buy and sell a house at the same time, and this scenario is commonplace in the property market.
Prime property purchases are rarely straightforward, from the arrangement of finances to the selling of assets, or a company or trust ownership – there can be various structures and strategies in play when buying or selling a property.
With careful planning and the right financing, and usually good advice from seasoned professionals, not only is it possible to buy and sell a house at the same time, but it is possible to do so without too much difficulty.
The problems faced by those relying on one property sale to support a forward purchase are usually caused by a chain.
What is a chain?
When referring to the process of buying or selling a house, a chain is a series of linked property purchases that are all dependent on the preceding and succeeding house purchases.
When a property is sold as ‘chain free’ it means that there is no related onward purchase, whoever buys that property will be at the end of any chain.
A buyer who is called ‘chain free’ is in a position where they are not relying on a property sale to make an onward purchase.
For a property chain to run smoothly it’s important for all parties to have good lines of communication as timing is critical.
This is often why we, as property finders, propose our clients work with a reputable solicitor as they can be invaluable when making a more complicated transaction.
Can you put an offer on a house before selling yours?
Yes, you can put an offer on a house before selling yours, however, you will not be in the strongest position if you are not yet under offer.
It is prudent to put your property on the market in a timely fashion if you are selling and buying a house at the same time. Once a buyer is under offer, they are deemed proceedable.
Benefits of selling your house before buying a new one
In almost all circumstances a chain-free buyer will be more attractive to a seller as their purchase is not dependent on a sale.
For this reason, and the serious lack of houses available to buy throughout recent years, many homebuyers chose to sell their home and move into rented accommodation.
Buyers in rented accommodation and those who are not reliant on the sale of a property, are in a far stronger position when entering negotiations for a property.
This is not to say that those reliant on a sale will not be successful, quite the contrary, but it is useful to understand the process and the potential competition you will face when searching for a house to buy.
Tips for selling and buying a home at the same time
1. Get a realistic valuation for your property
Getting a realistic valuation for your property should be the first step when selling and buying a house at the same time.
A valuation based on current local sales of comparable properties will ensure you can make forward plans and accurately calculate available equity for financing.
Garrington can assist with the sale of your property, arranging for market appraisals from top local estate agents to ensure you are provided with the right advice from the outset.
2. Talk to your mortgage broker or banker
Once you have a valuation for your property you can work with your banker or mortgage broker to ascertain the amount you will be able to borrow and available equity that will give you a budget when looking at properties for sale.
It’s also good practice to alert your banker or mortgage broker to your plans in case you should put an offer forward on a property as an estate agent might wish to contact them to confirm your affordability.
3. Find a solicitor
Before you put your property on the market for sale or look for a property to buy it is a good idea to find a solicitor.
There are several forms that must be completed to create the seller’s pack that will be sent to your buyer. Completing these forms before finding a buyer can avoid delays when you want to move forward with a sale.
4. Look for properties to buy
Those hoping to sell and buy within the same timeframe should be actively searching for a property to buy, particularly once their property is on the market for sale.
This can be a frustrating process for the reasons mentioned above, should you find the ideal property to buy but not be able to proceed, you might not be successful in a bidding scenario.
5. Find a buyer
The exact timing of when you place your property on the market for sale can sometimes be based on the current market conditions and demand for the property you are selling.
When marketing your property for sale you might be presented with several offers from buyers, it’s important for sellers to remember that the highest value offer might not come from the strongest buyer.
For surety of sale, it is important to consider all the details and credentials of each buyer who offers on your property. The key is to find the best buyer for your property.
6. Surround yourself with a team of trusted advisors
Surrounding yourself with a strong team of trusted advisors can be incredibly advantageous. From your mortgage broker to the solicitor acting on your behalf, each person you work with can make a difference in the success of a transaction.
Providing impartial advice throughout the process of finding and buying a property, a property finder is a valuable member of your team of trusted advisors.
How a property finder can help when selling and buying a house
A property finder will act solely in your best interests, assisting with sourcing the perfect property, whilst overseeing communications between parties and ensuring things move forward in a timely manner to your benefit.
To discuss your plans to move with a member of the team please do get in touch.