Most people assume that there are only the two choices. Be careful as both carry risk. If you sell first you may worry “If I can’t find another property, I’ll be homeless”. If you buy first you will probably borrow 100% of the purchase price plus the stamp duty plus any existing mortgage. That can be a very scary debt. If your house takes longer to sell or the price you get is a lot less than you expected the financial pressures can be horrific.
Don’t be tricked into believing that an auction [link to How Auctions Get Lower Prices] will save you. That just puts you under more pressure, more cost and still no certainty of a sale.
However, there is an alternative, safe way to move without any financial risk.
The Safe Way
Consider your move as four steps. To stay safe you must complete all four steps before you commit to selling or buying.
Step 1: Find a buyer. Your property goes onto the market without any pressure to sell. You are looking for the highest price possible. Once a buyer is found, the sale process starts but you don’t exchange contracts until you find your next home. You know you have a buyer and you know exactly how much you have to spend. No guessing.
Step 2: Find your next home. This is much easier and far quicker now that we have the internet. If the right home is there for you, it will normally be found within a few weeks.
Step 3: Check the finances and make sure you’re happy with your decision.
Step 4: Sell and buy. You solicitor will conduct a simultaneous exchange of both contracts, sale and purchase.
Does it really work? We have helped hundreds of families move using this simple approach. For the vast majority, the right home just seems to be there when they’re ready. But for the very few who can’t find the right home to move to:
Remember, until you reach Step 4, you have not made any commitment to sell or buy. So if you can’t find the right house at the right price you simply stay put. Disappointed may be but your finances are still in tact and there will be no fees payable to The Real Estate Shop. We take the risk, not you.
No expensive bridging finance
No risk of ending up with two houses
No risk of ending up homeless
The agent takes the risk
Most real estate agency agreements have a clause, which forces you to proceed with a sale or pay the agent a full fee.
Only The Real Estate Shop recommends safer selling.