Selling your home and purchasing a new one at the same time might be a difficult task. Home buyers and sellers alike may be concerned about becoming caught in the middle of a property chain. There are, however, a number of things you can do to alleviate the stress of purchasing and selling at the same time.
1. Determine the correct property value
Get a free property valuation for your property to start the process. While it’s tempting to go with the estate agent that offers the greatest price, your home is only worth what a buyer is ready to pay for it. Putting your home on the market with an exorbitant price tag would only slow down the process of finding a buyer. If a buyer is willing to pay a greater price, a mortgage lender’s assessment of the property may differ from the amount and the lender may refuse to lend on the property.
It is recommended that you obtain at least three separate valuations from local estate agents, as well as conducting your own research into what comparable properties in your region are currently selling for. This should provide you with a reasonable estimate of the value of your property.
Create a budget that is reasonable
The next stage is to assess your financial situation and establish a budget for how much you can afford to spend on a new home. It’s crucial to think about how much of a down payment you’ll need for your new house. If you’re buying a home that’s more expensive than the one you’re selling, the deposit you’ll need to put down will be higher than the deposit you’ll get from your buyer. In some situations, you may be able to put down a 5% deposit, which will allow you to acquire a home that is more expensive. If not, you’ll have to find a way to get the money.
Because you are no longer considered a first-time buyer, you may be subject to additional fees such as stamp duty. Depending on the purchase price of your new home, this may be a significant sum.
Consult a mortgage broker
Prior to putting your house on the market, seek counsel from your bank or an independent financial expert to have a clearer understanding of what is financially feasible. This will entail talking about remortgaging or moving your current mortgage to a new home.
Hire a real estate agent
It’s time to hire an estate agent to promote your home after you’ve analysed your finances and compared appraisals. When choosing an estate agent, keep the following in mind:
Is the estate agent willing to conduct viewings for you if you are unable to do so?
What is their experience selling property in the neighbourhood that is similar to yours?
What kind of web presence do they have? Is it possible to find them on Zoopla and Rightmove? What is the photographic quality of their work?
How quickly have they recently been able to sell houses similar to yours?
What are the terms and circumstances of their agreement?
What is their usual commission rate, as well as the length of the contract before you can cancel it if you are dissatisfied with their service?
What kind of feedback do they get on the internet? Is it possible to suggest their services?
Locate a home
It’s now time to discover a home you like and make an offer on it. If the offer is accepted, a property survey should be done to identify any flaws with the property that could cost you a lot of money in the future. The property survey may identify significant flaws that could sway your choice to proceed with the acquisition. If you decide to proceed with the purchase, you should consider the additional costs of improvements (if any) and speak with your mortgage counsellor again.
Retain the services of a lawyer
It’s critical to hire a professional property solicitor to make the process of purchasing and selling a home go as smoothly as possible. By completing property searches and analysing the results as soon as possible, a proactive solicitor can assist speed up the process. Identifying and resolving any difficulties will help to increase the likelihood of a faster completion date. Because some local authority searches might take up to six weeks to complete, this can cause a significant delay in the chain.
When you’re in the middle of a property chain, choosing a solicitor that takes a hands-on approach to communication is critical. Because your solicitor will be the primary point of contact for both your buyer’s and seller’s solicitors, it is critical that you answer promptly to all calls and emails from all parties in order to keep the chain moving.
Keep an eye on the chain’s progress
When one transaction is dependent on another, a property chain is formed. Although delays can occur due to circumstances beyond your control, there are some things you can do to efficiently monitor the chain’s progress.
Everyone in the chain will be working towards the same goal completion date if there is good communication between the buyer, seller, estate agent, and solicitor.
Set a deadline for yourself
It’s time to set a completion date and exchange contracts when the surveys and local searches are completed and any issues are resolved. Contracts will not be exchanged until your solicitor is satisfied that all difficulties have been resolved and you have given your permission to do so.
Your lawyers will arrange for the transaction as soon as all parties in the chain are in a position to do so. Contracts are most commonly exchanged over the phone. The seller and the buyer’s solicitor will receive a paper copy of the contracts. Weeks or days before the agreed-upon completion date – or even on the day of completion – exchange can take place.
The final step in the procedure is to plan your relocation. You may need to hire a moving company to assist you in packing and moving to your new home. To guarantee that your future utility bills are accurate, you will need to collect and submit metre readings for both your existing and new property. Unless you and the seller have made other arrangements, you will normally pick up the keys to your new home from the estate agent.