Buying and selling house (best approach)

jos_kel

Hi,
We are looking to sell our current house and move soon. Our current mortgage is about 25k so just wondering is it better to buy new house first and then sell current house.
Just want to avoid situation where we don't have full control and get caught in the middle of both transactions and have to accept less for current house and maybe more for new house.
Am I right in saying that if we buy new house first, it's the best situation because we can look for a good deal on new house and hold out for a price we're happy with on the current house.
Regards
Jos

ForEffsSake

Really depends on where you're buying. If you're buying/selling where demand is high. You'll probably sell quickly but you may find it hard to find and buy a place you want. Also, estate agents/vendors prefer if you have nothing to sell as it slows the process and complicates things. If you're one of a number of bidders, the first time buyer/no chain buyer is always preferable and may even trump a higher bid.
Also, you don't know exactly what your budget is until you sell the house.
We're trying to buy in a high-demand area and when we enquired about houses, the first thing they asked us was were we in a chain.

If you're buying/selling in a low demand area, again, you have to get rid of your house before you can buy - although as the vendor has less choice of buyer, you can afford to wait a bit.

Best scenario is if you are selling in a high-demand and buying in a low demand. Then you can sell quickly and probably buy quickly if the vendor really needs to sell.
The current market everywhere is a nightmare for different reasons and.
To be honest, I would try and avoid a chain if at all possible as you have the least control in that scenario. Selling is is really out of your control because you are dependant on your buyer having the funds (not guaranteed until the mortgage valuations/surveys are in) and the will to move quickly.
Buying, you have slightly more control but you have to find a property and get your bid accepted first. But don't ever kid yourself that you will have any sort of control over the house buying/selling process - you are depending on the whims of others in the house in both cases. Having bought and sold twice over in the last 11 years (in London, which is not half as dysfunctional as here) I can tell you I hate doing either but selling can be far more stressful - if you're messed around by the seller or can't sell, then you can't buy.

ForEffsSake

Really depends on where you're buying. If you're buying/selling where demand is high. You'll probably sell quickly but you may find it hard to find and buy a place you want. Also, estate agents/vendors prefer if you have nothing to sell as it slows the process and complicates things. If you're one of a number of bidders, the first time buyer/no chain buyer is always preferable and may even trump a higher bid.
Also, you don't know exactly what your budget is until you sell the house.
We're trying to buy in a high-demand area and when we enquired about houses, the first thing they asked us was were we in a chain.

If you're buying/selling in a low demand area, again, you have to get rid of your house before you can buy - although as the vendor has less choice of buyer, you can afford to wait a bit.

Best scenario is if you are selling in a high-demand and buying in a low demand. Then you can sell quickly and probably buy quickly if the vendor really needs to sell.
The current market everywhere is a nightmare for different reasons.
To be honest, I would try and avoid a chain if at all possible as you have the least control in that scenario. Selling is is really out of your control because you are dependant on your buyer having the funds (not guaranteed until the mortgage valuations/surveys are in) and the will to move quickly.
Buying, you have slightly more control but you have to find a property and get your bid accepted first. But don't ever kid yourself that you will have any sort of control over the house buying/selling process - you are depending on the whims of others in the house in both cases. Having bought and sold twice over in the last 11 years (in London, which is not half as dysfunctional as here) I can tell you I hate doing either but selling can be far more stressful - if you're messed around by the seller or can't sell, then you can't buy.

jos_kel

Sorry don't know if you missed my point. We would want to avoid the chain as follows

1. Buy new house first (get a mortgage on this one)
2. Wait for desired bid on house we're selling. No rush as mortgage is low and can rent it out in the interim?
3. Then when house is sold repay mortgage on new home.

Is this feasible?

TheDriver

jos_kel wrote: »

Sorry don't know if you missed my point. We would want to avoid the chain as follows

1. Buy new house first (get a mortgage on this one)
2. Wait for desired bid on house we're selling. No rush as mortgage is low and can rent it out in the interim?
3. Then when house is sold repay mortgage on new home.

Is this feasible?

only you can answer that as it depends on your finances and if you can afford it. As the other poster said, make sure you're not in a bad area whereby you could be selling your house for years unless you don't mind being a landlord. Also be careful as ex rentals can be less desirable than owner occupier houses.

jos_kel

Ok thanks for the advice.
As I said we have mortgage on current house of 25k and have savings.
The last time we moved it felt like we had no control and the estate agent was the same for both houses so had vested interest on both sides of the transaction.
Just wanted to know could we call the shots this time around and not be in a situation where timing is dictating prices on both sides of transaction.
Probably asking the same question again but ......,

mickeypat

Hope this is the right thread,so i bought a house cheap two years ago off the bank who were selling it as the owner had left the keys behind,got the house valued today and the auctioneer reckons its worth 65k more than when i purchaed(getting second/third valuation this week).I have a house spotted locally and would need 45k for deposit.i have some saving but most of it would be from the profit on the sale of my own house.Any advice on how to approach this,my own house needs a few small bits of painting done,apart from that its good to go.Have an appointment with my bank next week to ask what they think.Any advise.