Anyone with experience selling to buy a new house? I’m trying to figure out the best time to put my current place up for sale.
How long before getting the keys for the new house is the best time to sell? I haven’t done that before, so I’m trying to understand that to coordinate the timing as I can’t sell before getting the keys for the new place also I can’t sell after the new house is ready as the builders won’t wait long (I guess). Any advice is much appreciated. Thanks!
It appears that the only way to have certainty is to sell your house, move in to rented accommodation.
You will have cash and be able to buy another home.
You will have to sell before you get the keys to the new place. Bank won't let you have 2 mortgages on the go at once.
Have you already signed for the new place? Many developers won't sell to someone who isn't already sale agreed on their current house (depends on the level of demand for the houses).
Usually you put your house up for sale at the same time you start looking for the new house, and then you line up the dates so that your sale goes through on the same day as your purchase goes through.
Selling to rent is one option, but it's a very expensive option. Hardly anyone does this, it's too costly.
Well then make sure that your Solicitor has all necessary documentation to sell your own property, before you decide to put a deposit on another house, because you may lose your deposit if you can’t complete the purchase within the contract period/ closing date.
I haven't signed the contracts for the new place yet, will do soon.
The completion date for the new place is December, So I'm planning to have my current place up for sale around October to then coordinate the dates. In case of any delays the solicitor should be able to work with both parts (buyer and developer) to make sure I don't lose my deposit, I guess?
The problem is the completion date for the new house is December and contracts are due to be signed in the next 3 weeks. I can't sell my current property now as it makes no sense and selling to rent isn't an option. I'm using the same solicitor for both cases (buy and sell) having in mind that it's better than having one solicitor for each case. Does that make sense?
You can advertise your house to sell noting that any buyer will be entering a chain and won't be able to move into your house until you move out. This is quite common but can become messy if your buyer has another house they need to sell. Ideally you sell to a first time buyer who is living at home, or renting, and can wait until your house is ready be in December or delayed until January. It typically takes 6 months + for all steps in house sale, I would recommend doing major clear out, multiple skips and paint, and get a few auctioneers to give value estimates. Auctioneers are well used to dealing with sellers and buyers and you will probably ignore anyone who is not a first time buyer or non cash buyer. You may use non first time buyers to bring up the bids, as you want more than one bidder, and then one of the sale rules is they must wait until you are ready to go. This time of year is ideal to get house ready, put the ad up on daft and myhome and give a few weeks for interested parties to register their interest and view house. Hopefully you get a bidding war a few weeks later and sell to a first time buyer who can wait as long as you need.
In some cases your sale may fall through if delayed or technical problems on either side. Ask your solicitor NOW to check all legal stuff for sale. There is about 200 legal questions that will be asked and answered. You need to get a building energy rating before ad goes on daft. Lots of little things like property tax, old water charges etc. Don't skip all the legal stuff now, as it may delay sale later.
Realistically you may even be tight now to get all ducks in a row. You need time for your buyer to get ducks in a row, with can take 3 months even for first time buyer. They may drop out and you need time to get another buyer lined up.
Do not sell your house to someone with their own house to sell as chain gets dangerously long.