Making an offer without own house for sale

HotMama89

I'm looking to trade up and have had my current house valued auctioneer said it will likely sell within 4 to 6 weeks as it is ideal for FTB and fully renovated so ready to walk into.

There isn't much supply for the type of house I am looking for and I can bide my time until something comes up.

My dilemma is that I do not want to put my house on the market until I find a house I want but there may be an issue with having an offer accepted if my own house is not up for sale.

Has anyone been in this situation?

BrokenArrows

HotMama89 wrote: »

I'm looking to trade up and have had my current house valued auctioneer said it will likely sell within 4 to 6 weeks as it is ideal for FTB and fully renovated so ready to walk into.

There isn't much supply for the type of house I am looking for and I can bide my time until something comes up.

My dilemma is that I do not want to put my house on the market until I find a house I want but there may be an issue with having an offer accepted if my own house is not up for sale.

Has anyone been in this situation?

You are very unlikely to have an offer accepted until you have accepted an offer on your property.

Estate agents will encourage their clients to ignore your bid.

Put your house on the market and you can drag out the sale until you find a place. Or just sell and rent temporarily.

kippy

BrokenArrows wrote: »

You are very unlikely to have an offer accepted until you have accepted an offer on your property.

Estate agents will encourage their clients to ignore your bid.

Put your house on the market and you can drag out the sale until you find a place. Or just sell and rent temporarily.

It depends.
Generally it is better not to be in a chain, or at least have your house on the market and/or sale agreed if you are.
Outside of that it might be worthwhile looking for houses yourself, see what auctioneer is selling it, then use that auctioneer to sell your own house as you offer for the one they are selling.
I don't think there's anything wrong with doing this and it gives the auctionner an added incentive to look at your offer seriously while making sure both your sale and the vendors sale go through.

Estate agent will take your offer and use it to give any other interested parties a kick up the arse. "We've just had an offer of asking price" and they'll just fail to mention you haven't even got your house on the market yet and your bid is worthless. " But vendor would prefer to sell to you if you match the offer"

In other words, by putting a bid in at this far too early stage you are actually increasing the chances of it being sold to someone else and also likely inflating the price.

riclad

Say you sell your house tommoro, from the day you accept the offer it is at least 8 weeks for the legal process to be complete .
say you get 240k for the house, do you intend to buy a house for 220 k or less .
you could put in an offer to buy house, x . the offer is accepted ,
in theory the seller can stop the sale at any time until he signs the legal contract to sell the house.
eg he might get a offer of 20k higher from someone else or there might be some random reason to stop the sale going forward.

Its simpler to just put your house up for sale and then start looking for a house to buy.
if you offer a bid on house x, the agent will want to know ,where your funds are,
eg is it a cash purchase, do you have an agreement from a bank to provide a loan / mortgage to purchase the houses.

You have to think what do i do with all my furniture ,valuables
if theres a gap between the sale date of my house and the day i,m allowed to move in to the house i am buying .
will i rent out a flat, will i move in with my family for a few weeks .

its unlikely the house you buy will be exactly the same price as the money
you get for selling your house.
you have to be ready to save 10k approx for various expenses ,
like legal fee,s ,stamp duty etc

HotMama89

I have savings to cover the stamp duty and fees. I also have mortgage approval for balance. Reluctant to rent due to upheaval with kids, storage of current furniture and it could take 9 months to find something and complete a sale for which I'll be spending nearly 3 times my current low mortgage on rent. Alot to think about in terms of getting the balance right.

HotMama89

HotMama89 wrote: »

I have savings to cover the stamp duty and fees. I also have mortgage approval for balance. Reluctant to rent due to upheaval with kids, storage of current furniture and it could take 9 months to find something and complete a sale for which I'll be spending nearly 3 times my current low mortgage on rent. Alot to think about in terms of getting the balance right.

Sell your house first but don't close until you have found somewhere else. It means you'll need to find someone who is ready. I.e FTB buying and the vendor of your new house buying a new build. That puts you in a chai of 3, all parties will need to agree dates to suits everyone. Its a game of give and take but at the end of the day you all get what you want the only compromise is when.

Deagol

HotMama89 wrote: »

I'm looking to trade up and have had my current house valued auctioneer said it will likely sell within 4 to 6 weeks as it is ideal for FTB and fully renovated so ready to walk into.

There isn't much supply for the type of house I am looking for and I can bide my time until something comes up.

My dilemma is that I do not want to put my house on the market until I find a house I want but there may be an issue with having an offer accepted if my own house is not up for sale.

Has anyone been in this situation?

I took out a second mortgage to buy my current house. I had an existing mortgage and had enough for the deposit on the second house. Had both mortgages then running while I sold the first house - like you it was snapped up quickly due to being ideal FTB house.

goingagain

Recently in this exact position. Had to put our house on the market and be sale agreed before offers would be accepted.

We lost out on a house we liked because we hadn’t ours on the market and at least sale agreed.

Someone who hadn’t there house on the market yet was interested in buying ours and estate agent told them no point bidding. We already had 2 unchained bidders.

It’s one of those annoying things, but if you have to sell to buy, then you have to sell first.