Should I Sell or Buy My House First?

When it comes to selling and buying property, there is a bit of a chicken and egg situation in regards to what should come first. This can be pretty confusing for homebuyers and can depend on a lot of factors including your own personal or unique circumstances, finances, market conditions and moving timelines.

Whilst there is no definitive right answer, here we take a look at some of the pros, cons and opinions on what is the best way round to do things and why. So if you are thinking ‘when should I sell my property online’ now or in the future, then here is some helpful guidance and advice to make the process as stress free as possible.

Buying A Home Before You Sell

This isn’t a viable option for every homeowner but it is preferred by some due to the flexibility given when it comes to finding the right property.

Here are some of the potential advantages and disadvantages of buying your next property before selling your home.

Pros

• As long as your move isn’t time sensitive then this way allows you to take as long as you need to find your next home without the pressure of a deadline.
• You aren’t committed to a certain date or deal, so if you cannot find your dream home immediately or even within a few months then that’s OK.
• Choosing the right property is a huge decision so it’s important to ensure that it’s the right one for you.
• This way gives you more control over your moving timeline and allows you to plan, pack and organise at a pace to suit you.
• You aren’t controlled by the market, when you find the right home, whether it takes 1 day or 6 months, you are ready.
• As long as you are in a seller’s market, with a well priced property in good condition then it should sell.

Cons 

• If you do buy first then until you sell your current home, you are responsible for and technically own 2 properties which can be very stressful.
• Owning 2 homes at once doesn’t make sense for everyone and having 2 mortgages is a financial strain that not everybody can manage.
• Any flexibility you gained from buying first you lose when it comes to the sale of your property.
• You could be in the position where you need to consider the first reasonable offer you receive, rather than take a risk and hold out for more or other offers to come in.

Selling Your Property Before You Buy

Considered to be the more typical and safer way of doing things, selling your home first is the more conservative and practical approach that has both its advantages and disadvantages.

Pros

• Selling your existing home first allows you to shop with confidence.
• Buyers with their property already sold are in a much stronger position than those who haven’t yet.
• Having your property sold can be a powerful and helpful negotiation tactic if you are up against other buyers.
• If you put in a good offer then you are less likely to be gazumped as sellers will almost always prefer to take your offer than enter a property chain with someone who hasn’t yet sold.
• You remain in control of the sale with no pressure to sell your home quickly or accept lower or unfavourable offers.
• You can sometimes get a better price on the property you are buying if you have a seller who is keen to move quickly.
• Because you have the money in the bank from selling your home, you know exactly how much you can afford to spend on the property you are buying which also means no worries about having to achieve the expected price to afford the property you are looking at.

Cons

• When you sell first, it can make you feel under pressure to find something and buy quickly so that you can move out for your buyer.
• If you do not find somewhere in time then you may need to go into rented or short term accommodation which can prove costly and inconvenient.
• If prices are rising fast and it takes you a while to find a property then by the time you’ve sold your house and found somewhere to buy then it could be that they are much less affordable.

Conclusion

There is no right or wrong answer when it comes to what way round to do things, but it is definitely worth weighing up the pros and cons to see which would work best for your situation and personal preferences.

Buying and selling a property can be extremely stressful, trying to manage the financial, practical and emotional consequences that often come with this challenging process. Always try to be as prepared as you can by doing your research, arming yourself with as much knowledge and information as you can and seeking professional help if required to help put yourself in a strong position when it comes time to buy or sell.