Selling A House & Buying Another

Kintarō Hattori

Hi Folks.

I know this might seem silly to some but how exactly does the process work? The missus and myself want to move somewhere new. How do you buy another when it may take months to sell your own? That's the bit I can't figure out. The seller of the property you want to buy could be hanging around for ages while you sell yours so what stops them selling to someone else.

Not sure what's wrong with me this morning but I can't quite 'vocalise' what I'm thinking.

SozBbz

Its called a chain, and yes they are naturally riddled with complexity.

Few things to consider
- if your offer is dependnat on selling your own property and you've bidding against someone who is a FTB or chain free, your offer is likely less attractive, although how much depends on the specific vendor and how badly they want to sell.

- you could just try to sell your current property and move into rented/in with family in the short term. I'd say this depends very much on the market in your area.

happyfriday74

Its called being in a "chain".

It really is quite common situation. Ideally you put your own house on the market first and try get that moving and when you are sale agreed or better start the process with the purchase.

The above was my plan and then my purchaser fell out of bed just as I went sale agreed on the place I was buying. Managed to get another purchaser and closed my own sale a week before completing my purchase. It was a hairy few months and the house we ended up buying nearly walked.

If I was doing it again Id have completely sold my house or at least got contracts unconditionally exchanged on it so my own buyer was locked in and stayed with family while completing the purchase.

Best of luck with it as it can be stressful.

Looly8726

happyfriday74 wrote: »

Its called being in a "chain".

It really is quite common situation. Ideally you put your own house on the market first and try get that moving and when you are sale agreed or better start the process with the purchase.

The above was my plan and then my purchaser fell out of bed just as I went sale agreed on the place I was buying. Managed to get another purchaser and closed my own sale a week before completing my purchase. It was a hairy few months and the house we ended up buying nearly walked.

If I was doing it again Id have completely sold my house or at least got contracts unconditionally exchanged on it so my own buyer was locked in and stayed with family while completing the purchase.

Best of luck with it as it can be stressful.

100% this!
Our buyer fell through just as we went sale agreed on new house also. Incredibly stressful few months.

Put your house on the market first, best case scenario you go sale agreed on your own home pretty quickly and start looking at other places then. Feel free to put offers on at this stage but most importantly DO NOT fall in love with any other property as nothing is guaranteed in this process unless you sell your home completely first and then start looking.

fago

We decided to decouple them. We've just sold our current house and purchaser doesn't require immediate possession so we've switched to renting it for an initial 6 months.

Obviously this brings a different set of risks, such as finding a place to rent, possibility of rent/new mortgage overlapping, some other issue happening in between which means you no longer qualify for a mortgage.

But if you find a place you can stretch completion abit or get work done before you move in.

I found when even when we had it on the market with offers estate agents didn't take any of our bids seriously, unless you are sale agreed.

Hopefully our timing works out and we're not chasing a rising market.

Dolbhad

Pick your solicitor from the start. This will require a balancing act so get one on board now so title deeds can be requested and contracts drafted so contracts can move quickly once your sale agreed to sale.

Look around for houses but, as others have said, auctioneers tend not to take your as serious unless your sale agreed. However if you can use the aucitobeer you are buying off to sell your own house, it makes things easier. They have two sales from it and will make the most money so I would think they would ensure it goes as smoothly as needs be.

cruizer101

Bridging Loans used to be common where you would take a short term loan to buy a house which you would then pay off with the proceeds of selling your house.
They had much higher rates of interest that standard mortgages.
And the problem is if there are delays in selling your house you end up paying a lot.
I don't think they are really available anymore, though here is one company that seem to offer them
https://www.capitalflow.ie/property-finance/

Other than that its a property chain which can get messy as you don't know how many properties are in it.
Or sell and live in some temporary accommodation until you buy, can be dangerous also as buying can take a long time.

We really have a messy sales process for properties in Ireland, in other countries they do it much quicker which means less of a risk for temporary accommodation or bridging.

duffman13

cruizer101 wrote: »

Bridging Loans used to be common where you would take a short term loan to buy a house which you would then pay off with the proceeds of selling your house.
They had much higher rates of interest that standard mortgages.
And the problem is if there are delays in selling your house you end up paying a lot.
I don't think they are really available anymore, though here is one company that seem to offer them
https://www.capitalflow.ie/property-finance/

Other than that its a property chain which can get messy as you don't know how many properties are in it.
Or sell and live in some temporary accommodation until you buy, can be dangerous also as buying can take a long time.

We really have a messy sales process for properties in Ireland, in other countries they do it much quicker which means less of a risk for temporary accommodation or bridging.

Wow, thought bridging loans were completely gone these days but happy to see that they are still in existence! Would have been fantastic for me a few weeks ago

happyfriday74

Wow, thought bridging loans were completely gone these days but happy to see that they are still in existence! Would have been fantastic for me a few weeks ago

I explored this at the time and told a bridging loan was no longer an option. The bank simply would not let us drawn down our mortgage even if we secured a abridging loan. There was no pushing them on this. We had to have our current property either sold or unconditionally exchanged.

It could have just been my bank though.

tradingwizz

duffman13 wrote: »

Wow, thought bridging loans were completely gone these days but happy to see that they are still in existence! Would have been fantastic for me a few weeks ago

Do you know what rates they charge for a bridging loan. No info on the website.

rafatoni

Sorry for the bump but doing something similar but clueless.

If i was to seel my house tomorrow would have approx 200k in profit. Would this count as deposit towards new house etc and would i be better off selling first moving back into the folks with cash on deposit before looking?

Cheers

4ensic15

rafatoni wrote: »

Sorry for the bump but doing something similar but clueless.

If i was to seel my house tomorrow would have approx 200k in profit. Would this count as deposit towards new house etc and would i be better off selling first moving back into the folks with cash on deposit before looking?

Cheers

If it was feasible, that would be the sensible thing to do. You could look but beware of bidding when you are on the market/ sale agreed/waiting to close etc. It is far better to be able to say that your own house is sold and closed, you have the money in your fist, and are loan approved for the balance of the price of the new house.

PhilipJ

rafatoni wrote: »

Sorry for the bump but doing something similar but clueless.

If i was to seel my house tomorrow would have approx 200k in profit. Would this count as deposit towards new house etc and would i be better off selling first moving back into the folks with cash on deposit before looking?

Cheers

This is what i have done, yes it equates to a cash deposit. I have sold my house and moved back in with the folks. you will be more preferable to the the estate agent as you are ready to move forward with sale a lot quicker than someone who has to sell.