[Misc] House buying & selling question

[Chicken Run]

you know i get all the extra precautions etc, but it does smack a bit of agents dictating a market.

let’s be honest, who, unless financially forced to, is going to sell their home unless they can find something better or more suitable.

Well you haven’t sold your home have you, this doesn’t happen until contracts have exchanged, all your doing is agreeing a price with a potential buyer on your home subject to you finding somewhere.

 

[Ooh it’s a corner]

Firstly make sure that you know what you want in your next house and via rightmove etc get a good idea what it’s likely to cost you.
Then get at least two valuations of your own house and a feel for the agent you trust.
We’ve bought and sold half a dozen times I’d say in the 20 years Mrs Corner and I have been together - whilst it’s great to be able to coordinate everything timewise we’ve always concentrated on finding a buyer for ours as being key. As others have said that puts you in a much better position when buying. I’d also recommend being prepared to go into rented for six months if you need to. You then become chain free and in a much improved bargaining position.
Never assume things will definitely happen until everything is signed and sealed and be prepared for frustration.. And definitely get a reputable solicitor/conveyancer - cheaper doesn’t necessarily pay in the long run.
Good luck!

 

[Machiavelli]

Mrs DCH has told me that we are considering moving house. As we have lived in the same place for over 23 years, it is fair to say that I am a little out of touch with the current ways.

With regards to buying and selling, is it better to find somewhere first and then find a buyer for yours or the other way around? I know back when we bought our current place it was better to find somewhere first but I know this changes depending on the market.

Thanks

After 17 years in a great place, we moved into our new place at the start of the month. It took us 18 months to move. My advice would be to get your place as sorted as possible as quickly as possible. Either get rid of everything you don't need, or box it up and put it in storage. You need to make your house look fairly sparse in order to sell it.
Then start the two processes pretty much simultaneously. You have no idea how quickly your house will sell, you also have no idea when you come across a house that you want to buy becomes available.
Good luck. I wouldn't recommend the entire process but, hopefully, the end result will make it worthwhile.

 

[A mex eyecan]

Well you haven’t sold your home have you, this doesn’t happen until contracts have exchanged, all your doing is agreeing a price with a potential buyer on your home subject to you finding somewhere.

think you know what I mean

 

[Herr Tubthumper]

You'll get the NSC elite on here soon such as Harry Wilsons Tackle boasting about his extension basically adding nothing to the debate.

I wonder who’s behind this second account ?

 

[Goldstone1976]

I wonder who’s behind this second account ?

I’ll tell you in return for a beer.

 

[Shropshire Seagull]

Never had a problem with a chain-fail move but I hear it can be a right pain.

To avoid chain issues I know of people who sold their home and went into rented. This then made them a very attractive "no-chain" buyer [sellers love these folk].
It also means you have plenty of time to look for your next home you really love.
The downside is a double move in a short space of time but can be eased by putting some of your furniture into storage.

Defo think there can be some value in this - especially if market prices are predicted to fall in the near future.

 

[trueblue]

I suppose it varies nationally depending on demand but, locally, we found that last year it wasn't worth looking without having sold first. Properties were shifting so quickly that until we had a buyer and therefore were proceedable immediately, every house we liked had gone before we got a sniff.

 

[WATFORD zero]

Looks like you have three options.

Try to line up both deals together so you buy and sell simultaneously (which can be stressful)
Own both properties, having taken advice from someone like [MENTION=3887]Uncle Spielberg[/MENTION], as suggested by [MENTION=17745]Poojah[/MENTION] above (which can be stressful)
Sell you own property and be ready to move into rented accommodation short term until you find somewhere (which can be stressful)

Good luck whichever you choose

 

[Tim Over Whelmed]

I've always planned to move into rented for six months when moving house. Normally because you are no chain or a short chain you can demand a better price for the one you're selling and then , when in rented, you're seen pretty much as a cash buyer. We've also used the rental, if processing time permits, to do changes / decorating of new property. This method also means you can sometimes squeeze in a cheeky purchase also, negating the need to rent.

 

[swd40]

Bandwagon jumping slightly.

Any recommended solicitors, who deal with buying/selling?

 

[AK74]

Bandwagon jumping slightly.

Any recommended solicitors, who deal with buying/selling?

Yes. Bennett Oakley.

We moved to our new home at the end of January. They handled everything brilliantly from start to finish in what was a [relatively] complex transaction.
[MENTION=33723]Bod[/MENTION] will hopefully see this.

 

[dazzer6666]

Just to throw a slightly less conventional option into the ring, depending on your circumstances, here’s what I did last year.

We were in the fortunate position of having a reasonable cash deposit (around 35%), which meant that we were theoretically able to get another mortgage for our new house without having to have sold our old one. The tricky thing was that we wouldn’t realistically have been able to sustain the monthly remortgage payments on both houses.

So, what we did was temporarily remortgaged our existing property onto an interest only mortgage which reduced the monthly repayments to a nominal figure so that we could go ahead and purchase our new home and then sell our old one any time we liked.

There were multiple benefits to this. It meant we were effectively chain free (which given what would ensue with Covid was crucial), gave us more of a case during negotiations and avoided the stress of moving out of one place and into another on the same day. There were some huge, unforeseen advantages too. In April I was able to renegotiate a significant reduction in price on account of the uncertainty of the pandemic - we ended up 8% under the asking price in an area where houses regularly go for more than the asking price. House prices in this area of Leeds are broadly up 10% since the mortgage market reopened, so we’re up almost 20% in the space of a year, remarkably.

It also meant that we were able to sell our old house on the back of rising house prices, so we gained there too. You’re in a stronger position as a seller, too. Of course, there are risks there in terms of what house prices do in the medium-term, and we got lucky, so keep that in mind.

Of course, this doesn’t work unless you have, or can create the cash to put down on the new house. However, since you’ve owned your current place for 23 years, I’m assuming you have a reasonable amount of equity. With that in mind, you could free up some of your existing equity as part of your remortgage and raise the cash that way.

The down sides? Well, you have two mortgages to sort out and the products you need are fairly specialist, however we used NSC’s very own [MENTION=3887]Uncle Spielberg[/MENTION] for this and it was relatively painless (at least for us). Less complex than chains can be, arguably. You’ll also pay a premium on stamp duty as its classed as a second home, however you have 3 years to sell the property and claim this back. You also need to check the early repayment terms of your remortgage as well. And of course, as I’ve said, there are risks in terms of what house prices do. If you buy now and then house prices crash, you may lose value on your sale. That said, the fact that you place yourself in a far stronger position as both a buyer and seller should hopefully offset much of that risk (though of course, I cannot see into the future).

Anyway, just some food for thought. As an option it worked brilliantly for us on every level, in part due to a quirk of the pandemic’s impact on the market, however it was my plan long before I’d heard of Covid-19 and I’d happily do it again.

Happy to answer any questions.

Friends of mine recently did exactly this and it worked brilliantly. They had a stress-free 'gradual' move to the new place (and getting all the main decorating etc done before they moved), and were then in a v strong position when it came to selling their first place. Given the excess demand for property, and very low interest rates, if you can do it this way it's a good option.

 

[The Spanish]

I understand that getting buyers is not a problem right now - the issue is conveyancing is taking longer than normal currently due to WFH, and other factors.

 

[Poojah]

Friends of mine recently did exactly this and it worked brilliantly. They had a stress-free 'gradual' move to the new place (and getting all the main decorating etc done before they moved), and were then in a v strong position when it came to selling their first place. Given the excess demand for property, and very low interest rates, if you can do it this way it's a good option.

It surprises me that more people don't do it; I just don't think many people have thought of it. In terms of a stress-free move, aside from all of the financial benefits we lucked out on, that's exactly why I did it.

My good lady wife has a rather low stress threshold and a rather high anger output; trying to get out and in all in the same day was never really an option for us. It also meant that we could get the whole house properly decorated and kitted out without feeling like we were living on a building site, so that was a bonus and another potential stressor removed from the equation.

It's not for everybody, and you have to be prepared to accept a little bit of risk, but particularly in the current climate it's worth at least entertaining the idea if you're desperate to move.

 

[clockend1983]

If and when you move, be wary of time wasters.
Our neighbours house is up for sale, and they've had several of them come around.

That’s what viewings are all about aren’t they.
People come and view and make an offer if they like
the property and it’s what they are looking for.
Is it if they don’t make an offer they are time wasters?

 

[AmexRuislip]

That’s what viewings are all about aren’t they.
People come and view and make an offer if they like
the property and it’s what they are looking for.
Is it if they don’t make an offer they are time wasters?

Our neighbours told us of the feedback from the estate agents, on the viewings.
Two out of the five viewers were just wasting time, not really interested in house

 

[zefarelly]

Friends of mine recently did exactly this and it worked brilliantly. They had a stress-free 'gradual' move to the new place (and getting all the main decorating etc done before they moved), and were then in a v strong position when it came to selling their first place. Given the excess demand for property, and very low interest rates, if you can do it this way it's a good option.

Sounds like a great idea . . . as one matures and equity increases, as well as tolerance of incompetence declining, I wouldn't do it any othe way.

having just invested a significant amount in renovations and an extension we have no plans to go anywhere. Although I would be quite happy if the Cockwomble next door moved. .

 

[clockend1983]

Just to throw a slightly less conventional option into the ring, depending on your circumstances, here’s what I did last year.

We were in the fortunate position of having a reasonable cash deposit (around 35%), which meant that we were theoretically able to get another mortgage for our new house without having to have sold our old one. The tricky thing was that we wouldn’t realistically have been able to sustain the monthly remortgage payments on both houses.

So, what we did was temporarily remortgaged our existing property onto an interest only mortgage which reduced the monthly repayments to a nominal figure so that we could go ahead and purchase our new home and then sell our old one any time we liked.

There were multiple benefits to this. It meant we were effectively chain free (which given what would ensue with Covid was crucial), gave us more of a case during negotiations and avoided the stress of moving out of one place and into another on the same day. There were some huge, unforeseen advantages too. In April I was able to renegotiate a significant reduction in price on account of the uncertainty of the pandemic - we ended up 8% under the asking price in an area where houses regularly go for more than the asking price. House prices in this area of Leeds are broadly up 10% since the mortgage market reopened, so we’re up almost 20% in the space of a year, remarkably.

It also meant that we were able to sell our old house on the back of rising house prices, so we gained there too. You’re in a stronger position as a seller, too. Of course, there are risks there in terms of what house prices do in the medium-term, and we got lucky, so keep that in mind.

Of course, this doesn’t work unless you have, or can create the cash to put down on the new house. However, since you’ve owned your current place for 23 years, I’m assuming you have a reasonable amount of equity. With that in mind, you could free up some of your existing equity as part of your remortgage and raise the cash that way.

The down sides? Well, you have two mortgages to sort out and the products you need are fairly specialist, however we used NSC’s very own [MENTION=3887]Uncle Spielberg[/MENTION] for this and it was relatively painless (at least for us). Less complex than chains can be, arguably. You’ll also pay a premium on stamp duty as its classed as a second home, however you have 3 years to sell the property and claim this back. You also need to check the early repayment terms of your remortgage as well. And of course, as I’ve said, there are risks in terms of what house prices do. If you buy now and then house prices crash, you may lose value on your sale. That said, the fact that you place yourself in a far stronger position as both a buyer and seller should hopefully offset much of that risk (though of course, I cannot see into the future).

Anyway, just some food for thought. As an option it worked brilliantly for us on every level, in part due to a quirk of the pandemic’s impact on the market, however it was my plan long before I’d heard of Covid-19 and I’d happily do it again.

Happy to answer any questions.

Seems a very good idea
You said you could take your time and sell when you liked.
Would you have been able to rent your number 1 home out for a period
before selling it or would there be complications doing this?

 

[knocky1]

I’m selling an empty house at the moment south of New Church Road. Our home for 5 years then rented out for last 2 years. Should be on with Goldin Lemke in a few days. Photos done today in the sunshine. Very few houses available in Hove at the moment, especially with a long garden. No chain our end and I’ll do the conveyancing myself, about 2 hours work.

I’ll report in on the progress.