Buying house before selling own

Just seen a house that would suit us better than the one we have been in for years and we feel like a change. Have arranged to view it but location, price, rooms etc seem fine.

There would be no mortgage involved as our current home is paid off and we could pay cash for the small amount extra involved.

We had our home valued, photographed etc some months ago so it could go on market as soon as I instruct them.

I used to hear about "bridging loans" when people were in this situation but I am so out of date.

We also own another smaller house which we rent out.

Anybody got any bright ideas? Thanks.

Re: Buying house before selling own

Do what feels right-you may make a few quid,but then again who knows? We all need money but as long as you have enough think about your new home

Re: Buying house before selling own

The thing you have to ask yourself is are houses selling in my area quickly and then make a decision from there. You are the only one that can really answer that question.

You don't want to have to go from mortgage free to paying out each month if you get a bridging loan.

Re: Buying house before selling own

I think bridging loans are quite expensive. If you only need to make up a relatively small difference from savings you already have, perhaps a straightforward loan (which you can pay back without penalty as soon as you are ready) would be better. Houses generally sell quicker in the months after Christmas - spring/summer months, so you will need to make allowance for extra time and try to work out how long you will need to borrow for. One other thing, I don't think I would go anywhere near the companies that advertise to buy your home. They will not give the true market value of your home.

Re: Buying house before selling own

Thanks for all your replies so far.

Re: Buying house before selling own

Can I suggest you get your own home valued and understand the regulations estate agents must adhere to in providing that valuation...........then you are in a better position to decide if the house you'd like to buy is realistically priced.
You should also realise that as a cash buyer, you are in a very strong position and if you can manage to buy without selling your own home first, you're in a very much stronger position to negotiate the price to your advantage.
When it comes to selling your own home - pretend you are a potential buyer and spend a week or so looking at similarly priced houses in the area - that will give you an insight into maximising the marketing of your own home. Beware those who make good offers, never trust until the deal is done and always, always, always try and keep yourself in a position you can retract from in case of low-life gazundering scum!
Good luck!

Re: Buying house before selling own

Just a quick mention

Have you heard of sole agency but not sole selling rights?. In other words you give an estate agent your house to sell as normal. However you reserve the right to find your own buyer , ie friend/relative/work colleague etc. That way you avoid agents fees, but should they have seen your house advertised anywhere an agent may place the advert (board outside/ internet/shop window) then the agent can claim his fees even though the agent may not have directly spoken to that person.

Example

You have put it on this forum and a member may be interested and got in touch with you.The sale goes through as normal and no contact by the member to your selling agent or first found out it was for sale by them. Then the agent can't claim a fee as it is a direct sell between two parties.

It is one of those little known querks people are not aware of and legal.

Personally i would go the conventional route of selling and buying at the same time unless relatives can put you up for a time.


Having moved ourselves not so long ago it is stressful enough without adding a bridging loan to the total amout of the move.

There is the solicitors fees- agents fees- removal people fees- possible storage fees- postal letter readdress fees- telephone connection fees- surveys to name but a few, all which mount up to several thousands of pounds.

Once moved into new house there are sure to be things needed doing I should know all too well.

Just a few things may need attention

We had to spend out on a completely new main bathroom including tiles heated towel rail and electrics - new bath hand- basin taps power shower

New central heating boiler and few new radiators as some were leaking new pumps

new window handle gearboxs - new locks for doors- redecorate throughout- electric garage doors etc etc. In total I estimate another £40,000 on top of the purchase price to get everything back to how it should be. That is not including this years conservatory upgrade.

Ok it is a 4 bed house but the point is there are a lot of hidden extras to take into consideration so budget for that and then double the amount.

main bathroom

before


now



Oh buy the way the property has gone up in value buy at least £50,000 since we purchased it 2 years ago.Or put anther way we could not afford to buy it now, well out of our price range, so thank goodness we are mortgage free

One of the four bedrooms redone

From this

to this

Every room was so old fashioned you would not believe. So as I have already said, be prepared for a lot of expense after you have move in