Buy a new property , before I sell my current home?

It is swings and roundabouts as they say, whether to sell before you buy another property. Advantages, can be had in doing this, but there are also associated risks. It is a balancing act, and one you must yourself decide upon. Many people do sell their current property, while buying a new one, although it could prove stressful. This is known as creating a property chain.

Advantages for completing a sale before you buy

* You could get a better price, if a seller is found and wants to move quickly.

* You have the upper-hand, and in a better position to buy. The seller, would much prefer a buyer who has ready cash available in the bank. Rather, than entering into a chain, where you have to find a buyer for your property in order to proceed.

* You have the control on the sale of your own house. You aren’t desperate for a quick sale, and the price doesn’t need to be correspondingly dropped for a fast sale.

* You are in a strong position to negotiate a fair price.

* There is a lesser possibility of being gazumped. Buyers are more likely to steer clear, if it means they are part of a chain.

* There will be ready money in the bank from your house sale. You won’t be dependent on selling your existing property to buy your new home.

* Houses get more affordable if you wait, and don’t have to rush into a sale, if the house prices are falling.


* You may have to rent for a while, which will be costly. If you are lucky to sell your property first, and then disappointed, and delayed in choosing a new suitable home.

* Prices may rise surprisingly fast. Taking into consideration the fact you may have to rent after you’ve sold your property, with added costs. A new house may put a strain on your finances, and make it less affordable. If you rent for a year as an example, and house prices rise by 5 percent in that year, your finances, will have been depleted and you will only be able to afford 5 percent less.

To rent a property, is stressful and expensive. Achieving the upper hand, and being free of a chain, less likely to be gazumped or not achieving full market value, could be a harder prospect.

Points to consider

* Selling a property, needs to be researched thoroughly, what type of property you require and in which area.

* Your mortgage, needs to be pre-approved. Once this is sorted you will be taken more seriously by a seller.

* Look at the property market. That perfect house, may be round the corner, you’ve got time, so use it well.

* Make contact with local estate agents, before you sell your property. So they are aware, that you are looking for a new home.

* The selling process, could be slowed down, and a lengthy time between agreeing an offer, and completion delayed. This might afford you time to buy home.