It is perfectly natural for a homeowner to buy and sell property around the same time. If you already own a house and it is time to move on to a new one, it is very likely you need to sell property as well. However, if you are weighing up your options, is this the right approach to take?
You may feel as though you have no other option. After all, you need a place to stay, and you are only selling your current home because you are moving to a new one. If you didn’t plan on buying a new home, there would be no need to sell your current home. So, the process goes hand in hand, even if attempting both activities at the same time makes for a stressful time.
There are reasons to sell property before you buy
If you are looking to sell your current home before you begin the process of buying a new home, there are reasons to do this.
When you aren’t attempting to sell at the same time as you buy, you are in a stronger negotiating position when you sell. Some vendors have found themselves accepting a lower offer than they would like, simply because of the deadlines of the buying process. When you aren’t pushing through a property purchase, you have a stronger position to sell.
When you aren’t buying at the same time as you sell, you aren’t part of a property chain. This is a great asset to have when you eventually get around to buying a home. You will already have sold your property, be free of a property chain, and you’ll look more appealing to vendors. This factor alone may not make the difference when there are many bids in for a house you like, but it may.
Vendors want to avoid a chain, so if there is an acceptable offer from a buyer who isn’t involved in that process, their offer automatically carries additional weight.
Another reason to sell before you buy is you think house prices are going to fall in the near future. If you sell for a high price, and it then becomes more affordable to buy property, you can enjoy a profit on your home. You may use this money to buy a larger home, or you may put it to good use in other ways.
There are reasons to consider selling and buying at the same time
Of course, you must be aware there are reasons to sell and buy property at the same time. While there is a lot to be said for selling first and then buying at a later date if you believe property prices will fall, but what if the opposite happens?
If you sell your home and then house prices rise, you may not be able to buy the home you want, or you could find yourself priced out of the market. It is easy to see why many homeowners choose to buy or sell at the same time, because it minimises problems like this occurring.
There is also the fact many people would rather not rent. When you rent, you spend money that gives you nothing back, and it can be expensive. Therefore, it is best to coincide the buying and selling of property, so you can move from one house to the other.
If you are looking to sell your home, and you need guidance, please contact Williams of Petersfield, and we will do everything we can to assist you with the process.