The HomeOwners Alliance guide to:
Should I sell my home before I
buy a new one?
Most people sell their current home at the same time as buying a new one, forming a
property chain. Selling before you buy has risks, but it can also have great advantages
Advantages of selling before you buy
 It puts you in a great position when buying. Many sellers would prefer to take a buyer who has the cash
in the bank than enter a waiting game where their sale is dependent upon you finding a third party to buy
your house
 You are less likely to be gazumped. If you put in a decent offer the buyer is unlikely to take another if it
means entering a property chain
 You remain in control of the sale of your own house – because you won’t need to make a quick sale, you
will not be pressurized into selling cheaply
 Those with time on their side are usually in the strongest negotiating position
 You may get a better price when you buy a new property if you find a seller who is keen to move quickly
 You will know exactly how much you can spend because you’ll have the money from your sale in the
bank – buying your new home won’t be dependent on you achieving the expected price on your existing
one
 If prices are falling, then houses get more affordable as you wait
Disadvantages
 If you sell first, expecting to be able to buy quickly after, you may be disappointed and instead have to
rent for a time, which can prove very costly
 If prices are rising fast, by the time you’ve sold your house and sorted out somewhere to rent, a new
house will be much less affordable. For example, if you rent of a year, and prices rise by 20% in that
year, than you be able to afford 20% less
Renting can be stressful, but being in a chain, being gazumped, or feeling you’ve undersold can be just as
stressful.
Tips
 If you do sell before you buy, make sure as much as possible (mortgage etc) is organized before hand so
you can buy quickly
 Do your research before you sell. Decide what area you want to buy in, and what sort of property you
want to buy
 Keep an eye on the property market while you are selling just in case that perfect house comes along.
You’ve got time so you might as well use it
 Develop relationships with a number of estate agents before you sell so that you get in there first with all
good properties that come up for sale
 Get your mortgage pre-approved. This will make you even more attractive to a seller
The HomeOwners Alliance guide to:
2
How to afford to buy your home
Links:
Top Tips: how to sell a home quickly
How to break the housing chain
Top Tips: how to make your home more saleable – and valuable
See what other people are saying about selling their home in our forums - http://hoa.org.uk/forums/
Contact
If you’d like more information contact:
T +44 (0)20 8292 0361
M +44 (0)7947 240293
E [email protected]
HomeOwners Alliance Limited
www.hoa.org.uk
Legal disclaimner: The information contained in this guide should not be regarded or relied upon as a complete or authoritative
statement of the law. HomeOwners Alliance makes every effort to ensure that the information is accurate; but it accepts no liability
for inaccuracies, or the consequences of following our advice. If you think that you have a legal problem, you should get advice.
© HomeOwners Alliance 2012