Why It's Best To Sell Your Home Before Buying Your Next Property
24 March 2022
If you’re thinking of selling your home, Paul Clancy, Property Director, has some great advice before you get started!
Even with the uncertainty of the last two years, the housing market is continuing to boom with demand outstripping supply, creating something of a catch-22, with homeowners reluctant to put their house on the market until they have found their next home.
As properties are continuing to sell very quickly, there’s a great disadvantage for bidders who are yet to sell their own property.
It’s an all-too familiar story – clients who considering selling are proactively searching, but are reluctant to start selling until they have secured their next home. When in reality, trying to secure your next home when you’re still to sell, makes it much more difficult.
The number of homes on the market going to closing dates during November-January hit new highs. At closing dates, you’re likely to be competing with other bidders who have already sold, or didn’t need to sell a property in the first place. This makes a ‘subject to sale’ offer far less attractive, unless your offer is significantly higher than the rest. It’s not uncommon for second or third highest bids to be accepted if they were chain-free or from a cash buyer, over a ‘subject to sale’ bid.
New-build homes are increasingly popular for those looking to buy without a bidding war, but the market has experienced a similar supply-and-demand imbalance, with home selling out within days. Due to this, many new-build developments won’t allow you to reserve unless you’ve already sold or accepted an offer on your property.
If you want to try and beat this catch-22, you need to market your property first. In this sellers’ market, you can dictate the timescales, within reason. Transparency is best – let interested buyers know that completion dates will depend on when you secure your next home. You’ll find that most buyers will be willing to accommodate this.
Starting the sales process before you purchase also gives you the advantage of knowing your buying budget. Certain areas have experienced double-digit annual growth, with properties achieving significantly above the Home Report value, and we’ve seen clients achieve far more than expectation, increasing their budgets for their next property – so it makes sense to sell first!