Shall i put property on the market before new build is ready?

jlashcroft11

First post on the MSE forum -
I have early birded a new build house in my area - i was first told that the house will take 2 and a half years to build, since i have been told 12 - 18 months. To early bird the house (£100 fully refundable deposit if I back out) I had to show an offer on my house or show I have the cash to buy it outright.

1st problem - if I had an offer on my house now - who would wait 2 and half years for me to move out!
2nd problem - I don't have the cash in my bank to buy it outright

Anyway I think I have got away without showing them either.
I am now wondering do I put my house on the market now and test the water to see how quickly it will sell - but what if it does sell quickly - I would have to move in to rented! not ideal with a young child and a dog
My other option is to wait 6 months before the build and the put it on the market - if it doesn't sell though I may have to drop the price too low or worst case pull out of the sale on the new house.

Any advice welcome -

I am even contemplating buying a cheaper house for the time being to live in and then rent it out when the new one is ready!

da_rule

Speak to some estate agents and see how quickly things are shifting. They might not be overly keen having you on their books with a completion date that could be 12-18 months away.

A lot will depend how desirable your house is. But, in the time period mentioned, this can change.

Does your developer offer a part exchange scheme? You may take a bit of a hit on the price but it's a worry gone.

csgohan4

if you are not selling it to move within 3 months, usually buyers will be far and few


Have they asked for exchange already the developers?

Marvel1

jlashcroft11 wrote: »

I am even contemplating buying a cheaper house for the time being to live in and then rent it out when the new one is ready!

Do you know what is involved in starting this business?

kinger101

I always asked vendors (or their agents) the reasoning for their house being on the market. No chance I'd be interested under the circumstances you've described.

hazyjo

cjdavies wrote: »

Do you know what is involved in starting this business?

Not to mention the higher stamp duty...

Jx

Alderbank

jlashcroft11 wrote: »

I have early birded a new build house in my area...To early bird the house (£100 fully refundable deposit if I back out) I had to show an offer on my house or show I have the cash to buy it outright.

Anyway I think I have got away without showing them either.

I am now wondering do I put my house on the market now and test the water to see how quickly it will sell - but what if it does sell quickly?

You've not got away with anything - you have given them £100!

If the purchase goes ahead as agreed you will have given them an interest free loan for a couple of years. They won't care how many offers you received. If you decide to back out and ask for the return of your deposit, that is when they will ask for evidence that you had the money or offers as you had claimed.

Note that you only have to show an offer. The house will not sell itself - you would have to accept the offer, engage a conveyancer and go through the process of exchanging contracts, etc. If you are worried about your deposit you can advertise your property (you don't even need an estate agent) and once you have an offer in writing explain to the prospective buyer, before they spend any money on surveys, etc., that you would not be able to complete until your new house is ready. However most people in your position who decided to back out would just write off the hundred quid - it's not a fortune

jlashcroft11

Thank you for all of your responses.


They do offer a part exchange scheme but not to people who have early birded. Only on properties that are at 'roof stage' and haven't sold.


The developers have asked that we exchange when the house is about to be built.


Yes I am aware of the rental market - we already have one rental.

hazyjo

jlashcroft11 wrote: »

The developers have asked that we exchange when the house is about to be built.

I hope you'll have a very large deposit/are a cash buyer as your mortgage offer will expire and nobody can predict the market...


Jx