How to successfully time a purchase and a sale
The complexities of a property chain can create chaos, potentially causing last-minute challenges. Here we explore actionable steps to enhance the smoothness of the process when buying and selling simultaneously.
In a perfect scenario, you'd sell your home swiftly and have ample time to leisurely find your next dream home while your buyers patiently wait.
However, the reality often involves property chains, adding a layer of complexity. While not uncomhttps://www.perrybishop.co.uk/valuation/mon, these chains can bring significant challenges.
If you're considering buying and selling simultaneously, being well-prepared is key to navigating the potential headaches that may arise in the process.
How much is my property worth? Before you embark on plans to buy a new home, it's essential to have a clear understanding of the value of your current property.
Our team are here to help you start your moving journey and can come out to provide you with an accurate and detailed valuation, click here to book a time and date to suit yourself. This process will provide you with valuable insights into the market, allowing you to make well-informed decisions as you move forward with your home-buying plans.
Work out your finances - Start by getting your head around your finances; how much can you afford to spend on your next house? How much equity do you have in your current home?
Then there is the chain to consider. When you exchange contracts on the property you want to buy, you’ll need to pay a deposit. Ideally, you should exchange on the same day as your buyer exchanges, and therefore be able to use the deposit they pay you to pay your deposit on the property you’re buying.
However, if your new house is more expensive than your current house it’s likely that the deposit required will be more than the deposit you receive, so you’ll need to find the extra cash. It’s worth checking to see if you’re financially able to do this before you start the process.
You should also bear in mind additional costs such as stamp duty. You should be able to absorb this into your mortgage borrowing – but it’s a substantial cost so it’s always good to be aware of it.
Speak to a Mortgage Broker - If this is bamboozling you already, then a mortgage broker can help guide you to finding the right solution. That may involve re-mortgaging or porting your mortgage. The latter involves transferring your existing mortgage to your new property. Either way, they’ll be able to advise you on the best option for you.
For independent financial advice, please call Mark Weston on 07894 816781 or email mortgages@perrybishop.co.uk.
Instruct your Estate Agent - After carefully assessing your finances and ensuring you're ready, the next step in the journey to buying a new home is to instruct your Estate Agent and list your current property on the market. Taking this proactive step sets the wheels in motion for a smooth transition as you embark on your home-buying adventure.
Maximise your negotiating power - While you’re perfectly entitled to put in an offer on a property when your own house is still up for sale, your offer will be taken more seriously if your own property is under offer. Indeed, depending on the market your offer may not be accepted at all. You’ll also be in a better position to negotiate a good price if your property is already under offer.
Find a property and do your sums - After identifying a property you like, it's time to crunch the numbers. Evaluate potential renovations or improvements, consider associated costs, and consult with your broker again. Whether it's updating the bathroom suite or other adjustments, ensure the financial aspect aligns with your plans. Once you've done the maths and are satisfied with the figures, go ahead and make your offer on the property.
Get a good conveyancing solicitor - This critical part of the buying and selling process can be long and drawn out. Your conveyancing solicitor will need to conduct numerous property searches before any contracts can be exchanged. Unfortunately, this process can take even longer if you have a solicitor who is less than proactive.
Shop around for your conveyancing solicitor, get quotes from and speak to a few and read reviews before instructing them. The process should move smoothly but if you aren’t happy with the level of communication or speed of the process, get in touch and consider asking for a new case handler if things don’t improve.
Make sure you read, sign and return any paperwork sent to you quickly and either hand deliver or use a special delivery service to ensure they’re received on time. Increasingly, conveyancers scan documents and share them on an online system you can log into. Make the most of this but don’t hesitate to speak to your solicitor on areas where you want clarification.
Our dedicated in-house sales progressor will liaise with all parties to get your sale over the line. With their help, our average days to exchange is much speedier than the industry average. We can also recommend a panel of local, tested solicitors to handle the legal side. Contact us today.
Set a completion date - Once everything is tied up, surveys and local searches are returned and any issues ironed out, you’re ready to set a completion date and contracts can be exchanged. This is the date on which the funds will be transferred and the keys will be given to the new buyer. It’s important that all parties co-ordinate a completion date that works for everyone. This will take some correspondence – via your solicitor and those of the other members of the chain – and you’ll need to be prepared to compromise.
Get in touch today if you would like more advice on buying and selling, or want to take the first step, we'd be more than happy to get things moving for you or offer expert advice.