Tips for Selling and Buying a House at the same time in Watford
David Clayton posted on 6th March 2023
If you’re outgrowing your current home, you might be considering a Hertfordshire house move in 2023. Stepping up the housing ladder will most likely bring you more space – indoors and out. But it will also mean selling and buying a house at the same time.
While selling and buying a house at the same time comes with its pressures, that shouldn’t put you off a move, if it’s the right thing for you. Even during the current climate with concerns about interest rates and the cost of living, many thousands of people are buying and selling homes across the UK, with their transactions going smoothly.
To help you, we look at the key stages of selling and buying a house at the same time, with plenty of tips for acing the process.
Whether you’re looking to move in Watford, Garston, Leavesden, Abbots Langley or Bricket Wood, read on for our ultimate guide to selling and buying a house at the same time.
Need a property valuation?
Looking to Sell or Let Your Property? Book Your Free Property Valuation
Selling and buying a house at the same time – what could possibly go wrong?
People are nervous of selling and buying a house at the same time for obvious reasons. All property transactions have their stresses but conducting two at once means there are twice as many ways for the purchase and sale to fall through.
In addition, buying and selling at the same time means you are part of a property chain where your move is depended on other people’s transactions going to plan.
Issues which can come up include:
Problems with a survey meaning someone backs out or the sale slows down.
Issues getting a mortgage, again meaning a sale can’t progress.
Someone pulling out for personal reasons such as divorce, job loss or just changing their mind.
Slow movement by one link in the chain, meaning other parties no longer wish to wait and the chain collapses.
How do property chains work?
Property chain is the phrase we use to describe a group of linked property transactions where each sale depends on the others. They usually start with a first-time buyer and end with no onward chain – a new build or a home where the owner has died, for example. Some chains just have two or three links, others are longer and more complex. They work by everyone following the steps involved in buying property in order to complete on the same day.
What are the other options if I need to buy and sell?
There are ways to avoid being part of a chain, which you may want to consider, however there are costs and pros and cons associated with each. The main ones are:
1. Sell before you buy
You could decide to find a buyer for your home then move into rented accommodation while you look for a property. This has lots of advantages. If you’re worried about house prices falling in 2023, you can sell now while prices are still high and there is demand in the market. This will make you a cash buyer, so in a great position to put in an offer when you find the right place. If prices do fall you will be selling at a peak and buying when prices may be lower.
The downside is that you will need to spend money on renting a property while you look. Rental costs are currently high and homes are in demand, with landlords not so keen on people looking for short lets.
2. Buying then selling
If you find your dream home, you may decide to buy it now then wait for your home to sell. Again, this makes you an attractive cash buyer and takes away the stress of being in a chain.
This only really works if you have the capital to buy two homes at once – because you own your existing home outright and can get a mortgage on the second, for example. You could apply for a bridging loan – an interest only short-term loan until you sell – but the repayments can be high. If the housing market were to cool, you could it difficult to sell your first property and be paying the interest for longer than you’d planned.
3. Let to buy
You could rent out your current home to cover your mortgage and buy a second property. You would need to talk to lender about this as they may be reluctant to give you a second loan and you might struggle if you can’t find tenants for any length of time. You would also need to pay the stamp duty second homes surcharge when you buy.
How to buy and sell at the same time
1. Get a valuation
The essential first step is to have your home valued. We can offer you a current market appraisal of your home along with advice on your buying and selling strategy.
2. Get your finances in order
From your valuation you can work out how much equity you have in the property, and decide your maximum spend. When looking at costs remember that moving home is an expensive business so you’ll need to factor in conveyancing, estate agent fees, stamp duty and removals costs.
3. Get an agreement in principle
Talk to your mortgage company now to explain your plans and get an understanding of how much you can borrow, if you’re stepping up the ladder. Do plenty of research too on the pros and cons of moving lenders, taking early redemptions fees into consideration. If you can get an agreement in principle for your new loan, you will be in a better position when you find a property to buy.
4. Put your home on the market
You’ll need to put your home on the market before you start viewing places and making offers. Once you have accepted an offer, you’re more likely to be taken seriously by vendors and their agents.
Choose your estate agent carefully – this is particularly important if you’re going to be part of a chain. High street agents usually have the local knowledge and connections to manage tricky chains better than online-only agent, but do your research before you choose. A no sale, no fee arrangement, which most high street agents offer, also means they are incentivised to get the sale through.
It is a good idea to ask three companies to give you an appraisal of your property. Ask lots of questions and be wary of any agent over-valuing you home – this could cause problems later on.
5. Stage your home to sell
You’ll also need to prepare your home for sale, decluttering, completing outstanding repair jobs, sprucing up tired paintwork and boosting its kerb appeal.
And now is the time to book your energy performance certificate (EPC) inspection with an accredited assessor, if you need one.
6. Get organised
While your agent is busy conducting viewings and marketing your property, get all your paperwork in order so you’re ready to go when you get an offer. This means having to hand all guarantees for work on your property, gas and electrical safety certificates and mortgage documentation.
7. Start your property search
Make a start on your own search so you know what’s out there. Set up plenty of property alerts and register with local agents making sure they know you are a serious buyer. Demand for certain types of property is still high so be prepared to act quickly for the right home. Once your offer is accepted, organise your survey as soon as you can too.
8. Find a good conveyancer
More than ever, if you’re selling and buying a house at the same time, you’ll need a good, proactive conveyancer to keep everything ticking along. Again, look for recommendations from people who have bought and sold in the area, particular anyone who can suggests a conveyancer who saved the day with a difficult chain.
9. Remember, communication is key
Stay in regular touch with your conveyancer and estate agent during the process. Check in often, but not so much that you distract them from the matter in hand! Avoid going on holiday as this can cause delays. Respond quickly to all calls and requests – to sign paperwork, for example.
9. Get organised for the move
Decide on a removal company and the level of service you’ll need at an early stage. You’ll have to vacate the property on time, leaving it clean and tidy so don’t leave things to the last minute.
10. Exchange and complete
Once all searches and other conveyancing matters are complete you will exchange contracts and set a completion date for both transactions, which works for everyone in the chain. Completion day, is when ownership of each property is transferred to its new owner, money is settled up and the new home is finally yours.
Top tips for selling and buying a house at the same time
In summary ….
Have a good estate agent
Hire a good conveyancer
Be a good communicator
Make sure your finances in order.
If you’re looking to move house in Watford and the surrounding areas talk to us. We’d be pleased to offer you a market appraisal of your home and talk to you about our success in helping movers sell and buy the same time in the area.
Share
David Clayton
Claytons blog was created to give light hearted but hopefully useful property related thoughts and advice.
David started his career at former family firm, Weller Hill Hubble aged 17. The company was later purchased by General Accident property services and David went on to become their youngest ever manager and Area Director. However, disenchanted with corporate life he decided to return to his old roots and start a personal, service driven Estate agency. In 1991 Claytons was born and has grown into one of Watfords most well known and successful businesses. Outside of work David , who still lives locally is married with 3 children and a cockapoo called Teddy.
