Should I Sell My House Before Buying a New One?

When you start on the journey of moving home, it feels like a big step, and deciding whether to sell your current house before buying a new one involves considering various factors. In this blog, we explore the reasons for and against buying and selling your house at the same time.

Reasons to Sell Your House Before Buying a New One

• Financial Clarity: Selling your current property first gives you a clear picture of your budget for the new home.
• Negotiating Power: As a buyer with nothing to sell, you may have more negotiating power, potentially securing a better deal on your new property, as it could make you more attractive to sellers.
• Streamlined Process: Selling first can simplify the buying process and enable you to move more quickly with a purchase.

• More flexibility: Selling first give you more time for your home search so you can find the exact property that is right for you.

Reasons Not to Sell Your House Before Buying a New One

• Fear of Homelessness: The fear of being without a home can be a significant concern, especially if you’re uncertain about finding your ideal property quickly.

• More Expense: Selling your home before buying a new one means you will have to move more than once, which may result in higher moving fees and storage fees.
• Market Conditions: In a competitive market, you may not find your dream home for a while, meaning you may have to rent for longer than you want. Also, during this time prices could rise meaning you don’t get as good a deal.
• Emotional Attachment: If you’re sentimentally attached to your current home, selling first might create a sense of loss without having a new home to move into.

Tips for Selling Your House Before Buying a New One

• Set Realistic Timelines: Work with your estate agent to set realistic timelines for selling your current property to align with your new home search.

• De-clutter: Going through your belongings and deciding which items you want to donate and get rid of, will reduce the number of items you will potentially have to store.
• Know You Finances: Understand your moving costs, including any potential storage costs as it all adds up. Be prepared with how much you will need and even though you won’t be buying another property straight away, speak to a mortgage advisor to understand your affordability and mortgage options.
• Build Your Knowledge: Keep an eye on the housing market and understand what is happening with house prices and mortgage interest rates. Register with local estate agents and regularly search online portals to begin your search for your ideal home.

Tips for Selling Your House and Buying a New One at the Same Time

• Coordinate with Agents: Ensure effective communication with your estate agent and conveyancer to streamline both transactions.
• Keep Things Moving: You will have to deal with communication from both sides and will potentially have to act to speed the process up. Don’t be afraid to chase people up. if you haven’t heard anything from your conveyancer or the estate for a while, give them a call to find out what’s going on. They should be updating you regularly.
• Consider Porting: If you’re keeping the same lender, learn if you can port your mortgage to your new property. If you are taking out a bigger loan, there also may be the option of porting your current mortgage and taking out a new loan on the difference.

Where Will I Live If I Sell My House Before Buying Another?

Having a plan in place as early as possible will alleviate concerns about housing ahead of completion. Options include renting a property, staying with family or friends temporarily, or securing short-term accommodation, all of which you will need to plan in advance.

In conclusion, whether you choose to sell before buying or buying and selling properties at the same time depends on your priorities, market conditions, and personal circumstances. Evaluate the pros and cons, seek professional advice, and make an informed decision that aligns with your home-buying goals.

For more information on the selling process, read our step-by-step guide to selling a house, which looks at the entire process.