Moving home, putting ours on the market before finding somewhere new.

inacrisis

Hi all

We are looking at moving home soon, we currently have a shared ownership and all the others in block have sold within a few months of going up for sale. My question is would we be best putting ours up for sale asap so that we are not in a chain when we come to buying a new place (options would be renting our staying with parents till we find somewhere.) I keep reading about 'cash buyers' does this mean you have deposit ready and waiting and a mortgage set up ready (our situation) or does it mean you have the full purchase price in cash? Would we be in a better position if we are with parents/renting when we find a house we want? Sorry if these are stupid questions

Also could anyone point me in the direction of all the costs associated with moving? So far I have estate agents cost for selling 1-3%, then for buying, solicitors fees (£1k), stamp duty, surveryor fees (£500)

Many thanks

Doozergirl

Most people put their house up for sale before making any offers. You're unlikely to get anything accepted until that point anyway.

I don't think that being chain free and moving house twice reduces stress at all from being in a chain. It's just swapping one stress for another. All you can do expect that there will be stress, try to be flexible and try to ride it out as inevitable.

If you are SO then the chain is likely to stop with your buyers at the bottom. You're better off looking for somewhere with no chain above, but you can't help what you fall in love with and there's no guarantee with anything.

A cash buyer is one with the money all in the bank. No mortgage.

Solicitors fees will be more than £1000. Fee for sale, fee for purchase, then all your searches on top. Potential mortgage application fee.

inacrisis

Thanks for your reply, done a search online and it looks like about £2200 for legal fees including £700 stamp duty on an purchase price of 160k. We now have ours on the market and it's likely we will end up living with parents for a short time but that isn't a problem

BJV

I am like you and think that you should sell yours before you buy, but my OH thinks what it should be the other way around. In fact I am starting to agree with him after all what is the point in moving if there is nothing on the market that you like/ can afford.

The cash buyers is if you have physical pound notes. When you buy a house with a mortgage there are lots of legal differences. That can make a big difference. Having a mortgage sorted helps but not being in a chain is the big one. The fact that the people you are buying off know that there is only you in a chain is a huge advantage.

If you can (and it can take a few months don't forget that unless you are very very lucky the people you will be buying off will be in a chain) move in with parents.

We had a terrible house move earlier in the year and I honestly do not want to scare you with it but we where lucky we got what we wanted in the end. We do however know people who did what you are thinking of doing and it took the 18 months to move out / find something.

Good luck and hope that you find something that you like. 1st thing sell yours at the same time start looking you need to look at lots and research the market. Look at what you can honestly get for you money.

AdrianC

A cash buyer is somebody who's paying cash, not needing a mortgage (which can introduce delays and lender requirements, as well as the risk of the lender declining to lend).

Whether you find a buyer for your place before searching or vice-versa depends on whether you're in a buyer's market where you are. If it's going to take a while to sell yours, and there's plenty of choice for sale, then sell first. If yours is going to sell immediately, but you'll have to search for what you want, then find first - but bear in mind that may make you a less desirable buyer compared to somebody who is chain-free.

hazyjo

Agree with Doozergirl - I'd go for a chain rather than doing it all twice! :eek: Plus if the market rises, are you sure you'd be able to save at the same rate?! For two years, my house went up around £100k per year.


You would be 'chain free' not a 'cash buyer' if you did sell first. Some wrongly call chain free bods 'cash buyers' which might explain your confusion.


I'm budgeting for:


Solicitors
Estate Agents
Removals
Surveyor
Stamp Duty


You may also need mortgage fees/valuation/management pack from managing agents or freeholder, and I don't know what SO charges you might incur.


I've not paid more than 1% for EAs. You can usually haggle or play one off against the other.


Good luck.


Jx

AnotherJoe

BJV wrote: »

I am like you and think that you should sell yours before you buy, but my OH thinks what it should be the other way around. In fact I am starting to agree with him after all what is the point in moving if there is nothing on the market that you like/ can afford.
.

If you made an offer on my house and i found you hadn't even put yours up for sale, my comment would be "did someone say something? I thought I heard a sound? No? Nope, no one there".

Many sellers will not even allow viewings from those who are "not proceedable" which means, having an offer on their property.

So, by all means look around but dont imagine anyone will be remotely interested in what you have to say when you find soemwhere you want to buy, (except perhaps as bargaining chip against a real buyer; "thanks but we currently have an offer for £5k more we are considering, can you match that?")

You'd also be starting well behind the curve, say I put house up for sale, end of the week I have an offer from someone who has an offer on their house, and you, who haven't even tidied up ready to sell yet let alone instructed an EA or (perhaps) not have a mortgage AIP. How many houses do you think you'd lose out on? You'll also be under pressure to sell at a lower price for a quick sale to avoid losing out.

So you should be able to determine if there are houses you'd like to buy at a price you can afford, without needing to make visits, and you will as said lose out on some simply because they wont take a visit from you.

ellie27

If you phone up to view a property on the market most estate agents will ask
-do you have a house to sell
-is it on the market
-are you under offer
-have you got your mortgage in principal

And the estate agent will pass all these answers along to the seller. You can of course just say yes to them even if you have not sold etc.

If you came to view my property without even having your house on the market I would not count you as a serious buyer. I would not accept an offer from you until you could confirm you had already accepted an offer on the sale of your own place.

Estate agents 1% max in my area of Glasgow, and you should negotiate too.

If you wait til a house comes up that you like......someone ready and able to purchase could put an offer in the day it comes on sale. You wouldnt be able to do that, or at least you wouldnt be taken seriously. You could get your house on the market in a few days and have a buyer in a few days but that still could be a week and by that time the house that you like could be well gone.

sheff6107

I had a viewer who hasn't sold theirs. I have their listing bookmarked on Rightmove so I can give them a call as soon as it says under offer

AdrianC

sheff6107 wrote: »

I had a viewer who hasn't sold theirs. I have their listing bookmarked on Rightmove so I can give them a call as soon as it says under offer

Not all EAs update the flags on RM - when we bought this place, we'd moved in before it changed from just being unflagged. Then it simply disappeared.

Cakeguts

A cash buyer is someone who has the full purchase price in cash in the bank and who doesn't need a mortgage or to sell a house they are currently living in. We once had someone who claimed to be a cash buyer who then turned out to be selling a house to fund the purchase. If they has sold the house and moved into rented and put the money in the bank then they would have been a cash buyer. You are not a cash buyer if you have to sell a house to raise the cash. A cash buyer is someone who has all of the purchase price in the bank and could pay it over that day.