Customers often ask me if they should find their dream home before they sell their current property or should they sell first before starting their property search!
I always give the same response and it could potentially save you thousand of pounds…
Lets look at each scenario
Find your dream home before selling your current property
You go onto one of the major property portals i.e. Rightmove or Zoopla and find a house that ticks every box then you view the house and think that it’s the one for you and that you would like to put in an offer.
One of the first questions you will be asked is about your position to buy and as you have not sold or possibly not even on the market yet, then it does not put you in a strong position to negotiate. In all likeliness the vendor will only accept a high offer if they have to wait for you to sell and you also risk another buyer beating you to the purchase.
Conversely when you have already found your dream home and had an offer accepted then it’s natural to feel the pressure to get your current home shifted quickly.
You may choose to market it at a lower valuation price or be willing to accept a low offer to ensure you don’t miss out on that dream home.
If you don’t do either of these then there is a good chance your house will take longer to sell, albeit the standard length of time to be on the market but there’s a good chance your dream home will be sold to someone else before you sell.
This will lead to you feeling deflated and you will have to start the whole property search again.
Sell you current home before starting your property search
When you come to sell your home it is always advisable to get 3 agents to come around and conduct a market appraisal.
Ensure you’re happy with the agent and fully understand their process and terms and conditions.
Once you are happy with the valuation you will price your property accordingly and then will get viewings from prospective buyers which will obviously lead to offers, however, as you have not found your new home yet then you won’t be in any rush and can negotiate strongly to ensure you achieve the best possible price.
Once you have accepted an offer, your home is affectively sold subject to contract (STC) and this is when you start your property search in anger, as the likelihood is you have been keeping an eye on the market while selling your current home.
You will know you have to find the right property and believe me some of the things you would normally object to will seem trivial i.e. you don’t like the flooring or other aspects of the decorating.
Fundamentally you will only settle on a house that suits you so if this takes a while then that’s how long it takes and the people that are buying your current home will have to wait.
This can be risky as they can pull out and find somewhere else but at least you are in the driver’s seat!
An alternative solution to mitigate this risk is to consider a short term rental, although many people are doing this it may not suit everyone.
Now once you have found your dream home and you put in an offer then you are in a strong position to negotiate, as you’re ready to go then there’s a good chance you will get the property for the best price.
In the first scenario it is more likely that you will have to put in a high offer for it to be accepted and secure your dream home. Then you will feel the pressure to sell your current home quickly and are more likely to accept a lower offer.
In the second scenario you will sell your current home for the best price and then be in a strong position to buy your dream home. Mathematically this combination will save you thousands of pounds.
If you would like to discuss your personal position to selling your home with a local property expert then get in touch with Homexperts Peterborough.
Director: Faisal Al-Gharabally
Website: Homexperts Peterborough
Office: 01733 797000
Mobile: 07715 200097