Description: Selling one property while looking to buy another can be tricky to negotiate and can incur many hidden costs. If you’re eager to sell the house and relocate but aren’t sure how best to manage this process, our 7 tips are for you! Follow our handy guide to avoid falling prey to potential property pitfalls.
Ideally, selling your old home and buying a new one is a straightforward transaction. In reality, putting one property on the market while searching for another can be a challenging and complex process. It’s important to equip yourself with the appropriate knowledge and essential tools for home swaps before you enter the process. Follow these 7 tips to minimize the common risks that managing both your sell house and your buy house can bring up.
Getting House Ready to Sell
Before you put your house on the market, you should ensure that it is in the best possible condition to tempt a buyer. Finish any renovations that will add value to your property. You should also have your property valued by an estate agent. It’s vital you have a realistic view of what your property will fetch. This is even more important when you plan to buy simultaneously, as you need to know how much you will have available to spend. Estate agents can also tell you the best months to sell a house.
1. Buying and Selling in A Seller’s Market
Wondering how to sell your house? Well, the market will always be in a state that benefits either buyers or sellers. If you’re in a seller’s market, you have the potential to sell a house fast. You should also be able to hit your asking price. Although you may be able to sell quickly, finding an affordable new property will likely take longer. Other sellers will also feel less pressure to take a low offer so it’s worth putting some extra cash aside.
2. Buying and Selling in a Buyer’s Market
In a buyer’s market, the scenario is reversed. While there might be lots of properties on the market, there are not many people looking to buy. This may cause problems for you while you try to sell but benefit you when you purchase your new home. Downside? Buyers will feel less pressure to meet your asking price, and you may have to accept a lowball offer. Despite this, you will ultimately get more for your money.
3. Examine Mortgage Options
No matter how much you plan, your timing may not be perfect. There is always a risk that you will find the perfect home while your old house is still for sale. Before you even enter this process, the overall cost of selling a house. Can you pay two mortgages at once? How is your credit rating? Will a company give you a second mortgage while you’re still paying one? Consider these questions before you try to sell a house.
4. Secure an Offer Before You Make One
Closing an offer on your old house before you make a final offer on your new one is the best way to complete a secure exchange. It’s sensible to place your house on the market a few months before you start your property hunt. If you do sell the house sooner than you expected, you can always try and negotiate so that you have a few months grace period before the handover takes place.
5. Plan Your Exchange
Buying and selling simultaneously involves many parties, and you need to fit around everyone’s schedule. Ensure that you can have the keys to your new place before you hand over the old, or organize to have your stuff moved out before your buyers want to move in. Make sure your solicitors and representatives understand and co-operate with this. If you feel more comfortable handling things yourself, take details from your buyers and from the person whose house you intend to buy. This way you can keep lines of communication open throughout the process.
6. Prepare for Hold-Ups
Even with the best will in the world, hold-ups happen. The average time to sell a house is around six months, so factor this in. You might find that you sell the house before you can find a new one. It’s important to plan ahead and make sure you have somewhere to stay if this happens. Factor in the cost of renting or temporarily staying in a hotel. If you have a property in mind but haven’t closed yet, ask the owner about renting before purchase as some sellers are willing to work on these terms.
Remember, buying and selling together is difficult to pull off without a hitch. Give yourself plenty of time and seek professional advice along the way. We hope our tips have helped!
Have you successfully negotiated a property sale while also buying a new house? What are some things you learned from your experience? Share your advice with our readers!
Author’s Bio: Kay Burton owns several properties and has a working knowledge of all things real estate. He trained as a property manager and then moved on to managing financial investments in property. He runs a successful business advising the first time and experienced buyers on their real estate options.