Without a doubt, one of the biggest decisions you will make when moving is to sell first and then buy, or buy first and then sell. The answer is different for everybody – it depends on your financial position, how much risk you are willing to take and what the competition looks like in your area right now. For Gloucester Estate Agents, visit https://www.tgres.co.uk/

Option 1: Sell first

Pros

You know your budget. Your actual purchase could be made with more certain figures flowing from a (hopefully stronger mortgage application) once your sale is agreed.

Your bid is cleaner to sellers. However, selling pending contract to an agreed transaction may get you ahead before buyers have even listed.

Less financial pressure. You would be less likely to require bridging finance should rates and costs transpire larger than expected.

Cons

You may need temporary accommodation. While selling the property might be easy and fast, finding a place to move could lead you into needing to rent or paying someone else for storage.

You might feel rushed. You might end up settling for too little space, less than desirable condition or layout because you do not want to lose the buyer.

Option 2: Buy first

Pros

That should give you plenty of time to decide. When you do find the right one, then you can lock it down without stressing on your sale timeline.

You avoid being homeless. In practice, that you move only once as opposed to moving into a temporary accommodation.

Cons

It can be expensive. You might end up paying two mortgages, or a mortgage and rent, on top of both council tax payments and insurances.

You risk being stuck. If your present home has a slower transaction period, you may have to lower the price or agree on terms with less favourable conditions.

Chains can still happen. Even if you do end up the buyer, your purchase could be contingent on what happens with the seller next.

Which works well in this present day market?

In a market where good homes still sell quickly but buyers are more price-sensitive, many sellers (and their agents) follow this cycle that they have seen play out over the last few years: Sell first to minimise risk. On the other hand, if you are buying in a slower market (or have enough cash to cushion against overlap) buying first can be convenient as well.

Quick rule of thumb

If you are planning to use the equity from your sale or if having multiple mortgages causes additional stress in life, sell first.

Buy first if you are wanting a gem of property and have money saved up in bank to fill the gap.

If in doubt ask an estate agent to map out likely timelines where you are and the best strategy for your position.