Deciding whether to buy a new property before selling your current one or to sell first can be a tricky choice. The decision depends on several factors, such as your financial situation, the Evesham property market, and your personal circumstances. To help you make the best decision for your move in Evesham, here’s a breakdown of the pros and cons of buying first and selling first, along with some tips on how to synchronise your move effectively according to Evesham letting agents.
1. Buying First: The Pros and Cons
Pros of Buying First:
1.1 Less Pressure in House Hunting
If you buy before selling, you give yourself the freedom to search for a new home at your own pace. You won’t feel rushed or pressured to make a quick decision.
- More Flexibility: You have more time to explore different properties and find the perfect home in Evesham without worrying about being in a hurry.
- Negotiation Power: Since you’re not in a rush to move out of your current home, you may be in a stronger position to negotiate on the purchase price of your new home.
1.2 Avoid Temporary Accommodation
Buying first means you can avoid the hassle of moving into temporary accommodation between selling and buying.
- Smooth Transition: You can move straight from your current home to your new property, eliminating the need for short-term rental arrangements.
- No Double Moves: Moving once saves both time and money, and minimises disruption, especially if you have a family or are tied to local work or schools in Evesham.
Cons of Buying First:
1.3 Financial Strain
The biggest risk when buying first is the financial burden of owning two properties at once. You’ll need to cover two mortgages, insurance, and utility costs if your current home doesn’t sell quickly.
- Double Mortgage Payments: If your existing home takes longer to sell, you may face months of paying two mortgages.
- Bridging Loans: To cover the financial gap between buying and selling, you may need a bridging loan, which comes with higher interest rates and additional costs.
1.4 Uncertainty About Your Sale
When you buy first, you don’t know exactly how much your current home will sell for. This can make it difficult to budget accurately for your new purchase.
- Potential Financial Shortfall: If your home sells for less than expected, you could be left with less capital than anticipated, affecting your ability to finance the new property.
2. Selling First: The Pros and Cons
Pros of Selling First:
2.1 Financial Certainty
Selling first provides clarity on how much money you have for your next home. You’ll know exactly how much you can spend, making budgeting for your next property easier.
- No Financial Overlap: You won’t have to worry about paying two mortgages at once, which reduces financial risk and provides peace of mind.
- Stronger Buying Position: Once your home is sold, you’re in a strong position as a cash buyer, making you more attractive to sellers.
2.2 Avoiding Bridging Loans
By selling first, you won’t need to rely on expensive bridging loans, which are often required when buying before selling.
- Reduced Costs: Without the need for short-term financing, you avoid the fees and interest rates that come with bridging loans.
Cons of Selling First:
2.3 Risk of Needing Temporary Accommodation
The main downside of selling first is that you may need to find temporary housing if you can’t find a new property in time.
- Moving Twice: You might need to move into a short-term rental or stay with family while searching for your new home, adding extra stress, expense, and inconvenience.
- Pressure to Find a Home: Once your property is sold, you may feel pressured to quickly find a new home, which could result in making a rushed decision that may not be ideal in the long run.
2.4 Fluctuating Market Conditions
The property market can shift rapidly. If the market heats up between selling your home and buying a new one, you may face higher prices or fewer available properties.
- Rising Prices: There’s a risk that the price of properties in Evesham could increase while you’re searching, making it harder to afford the home you want.
3. How to Synchronise Your Move
Synchronising the buying and selling is problematic, but it can be easier when carefully planned out. Here are a few strategies for managing both transactions effectively:
Add a Chain-Free Buyer Clause: If you buy first, you could insert a clause in the purchase offer that allows you to sell your current home before completing the purchase of the new one. You will be in a better position and under less financial stress. One may consider
Availing a Bridging Loan-with Caution: Bridging loans assist in paying for a new property before the sale of your current one, but they boast of high interest rates. Should this be the route you would want to follow, make sure that you have a well-considered exit route so that you can sell your house quickly to avoid long-term financial burdens or stresses.
Negotiate a Longer Closing Period: You can negotiate an extended closing period when selling your home. This gives you time to find and secure your next home without having to go into temporary accommodation.
Delayed Completion: With a flexible buyer, you can negotiate a delayed completion date. In this case, you will have some extra time to look for your property.
Work with a Local Estate Agent: Buying and selling at the same time in Evesham can be best coordinated by an experienced estate agent. They will be able to guide you through the pricing of your current home to sell at a competitive price, whilst being vigilant for a new home that will meet your requirements.
Conclusion:
Whether you buy first or sell first in Evesham is a matter of your particular financial situation, the state of the local property market at the time, and, importantly, your personal situation. Buying first gives you flexibility and convenience but involves some degree of financial risk. Selling first offers you certainty, but you might need to look for temporary accommodation. Synchronizing your move does take careful planning, but with the right strategy, you should be able to work both transactions smoothly and have a less painful transition into your new home.