2nd Home Options

soulbinder

Hi all I need some advice on where I stand with this.

I have an existing home which I plan to either let or sell (not sure which one yet).

I want to buy another home to move into and have enough saved for a deposit, basically buying the second home isn't dependent on the sale of my existing one.

When I put an offer on a new build house recently the agent said they would only accept an offer if I'd had an offer on my property which confused me as how does that affect other buyers involved in a chain?

Anyway, I want to know what the best way forward is and how should I approach the purchase of second home. I.e what should I consider with someone in my situation as agents expect you to be ready to buy and move in within minutes these days (unrealistic in my opinion but what do I know).

Thanks 

theartfullodger

Present agent with evidence you can buy (now-ish) eg bank deposits, mortgage offer(s) or however else you will buy.

You'll appreciate more stamp duty doing it that way.  Compensated for that already?

I've bought more than once without sale lined up , usually cash or with deposit/mortgage offers.  But I've always explained that and offered evidence if agent doubts my word.

Bookworm225

never lose sight of the fact the agent works for themselves only, They are keen to find buyers who can move quick and pay "high"

is your existing property mortgage free, or will you be simultaneously funding two mortgages?

if you want to divulge to an agent the max of your budget by showing them proof of the size of cash deposit feel free to do so. Many would not, in expectation that the agent would then "know" how hard to push escalation of your offer. 

at the end of the day, the vendor may have instructed their agent in precise terms what "quality" of potential buyer they wish to become engaged with. Already with a offer obviously being better than new to market.
You just have look at the next property if you cannot meet their criteria 

poseidon1

soulbinder said:

Hi all I need some advice on where I stand with this.

I have an existing home which I plan to either let or sell (not sure which one yet).

I want to buy another home to move into and have enough saved for a deposit, basically buying the second home isn't dependent on the sale of my existing one.

When I put an offer on a new build house recently the agent said they would only accept an offer if I'd had an offer on my property which confused me as how does that affect other buyers involved in a chain?

Anyway, I want to know what the best way forward is and how should I approach the purchase of second home. I.e what should I consider with someone in my situation as agents expect you to be ready to buy and move in within minutes these days (unrealistic in my opinion but what do I know).

Thanks 

If you only have a cash deposit ( so need a mortgage ), you are certainly not a cash purchaser which would potentially make you more desirable than a purchaser who has to sell their home to fund their purchase.

You should be armed with unambiguous mortgage in principle offer and present your self as someone who has nothing to sell, so your existing property ( and what you choose to do with it) becomes irrelevant to your ability to buy your next property. If you don't have a firm mortgage offer in your pocket, then respectfully you will not be taken seriously.

As indicated by theartfullodger be aware of your 2nd property additional stamp duty obligations.

Bigphil1474

OP, those who need to sell before they can buy usually need to have had an accepted offer before they can put in an offer on their onward purchase, basically they are proceedable. No point offering until they've sold. If you don't need to sell , then tell the agents that you are buying without needing to sell. Just sounds like the EA was a bit confused.
A chain is usually built from the bottom up - FTB or cash buyer offers on a house, offer accepted. The people selling then find a house, offer, accepted, and so on. Hopefully one of those buyers buys an empty property so the chain isn't too long.