6 August 2020
Selling your home and buying another property at the same time can be a daunting prospect. Ending up in the middle of a property chain can be a great worry for home buyers and sellers alike. There are however many things that you can do to relieve the stress of buying and selling simultaneously.
Start the process by getting a realistic valuation for your property. Whereas it is always tempting to choose the estate agent with the highest valuation, in reality your home is only worth what a buyer is willing to pay for it. Putting your property on the market with an extremely inflated valuation is only likely to delay the process of finding a buyer. Should a buyer be willing to pay a higher price, a mortgage lenders’ evaluation might disagree with the amount and refuse to lend on the property.
It is best practice to get at least three different valuations from local estate agents, along with doing your own research into what similar properties in your area are selling for at the moment. This should give you a realistic valuation figure.
The next step is to analyse your finances and to set yourself a budget of what you can realistically afford to spend on a new home. It is important to consider what deposit you will need to purchase your new home. If you’re purchasing a home that is more expensive than the property that you are selling, then the deposit you need to pay will be more than the deposit you will receive from your buyer. In some cases it is possible to put down a 5% deposit, which may make it more possible for you to purchase a more expensive home. If not you will need to be able to source the extra funds.
As you will no longer be classed as a first time buyer you may now be faced with additional costs such as stamp duty. This can be a substantial amount depending on the purchase price of your new home.
It is a good idea to seek advice from your bank or independent financial advisor, prior to putting your home on the market, to give you a better idea of what is financially plausible. This will include discussing options about re-mortgaging or porting your existing mortgage to a new property.
Once you have analysed your finances and compared valuations it is time to instruct an estate agent to market your property. Think about the following when considering instructing an estate agent:
Now it’s time to find a property that you like and put an offer in. If the offer is accepted you should have a property survey completed to highlight any issues with the property that may cost you a lot of money in the future. The property survey may reveal major issues which may influence your decision to go ahead with the purchase. Should you wish to go ahead with the purchase you should weigh up the additional costs for renovations (if any) and re-consult with your mortgage advisor.
Instructing a good property solicitor is essential in smooth lining the process of buying and selling at the same time. A proactive solicitor can help to speed up the process by conducting property searches and reviewing the results as early on as possible. Highlighting and being able to fix any issues will help to speed up the chance of an earlier completion date. As some local authority searches can have a turnaround time of up to six weeks, this can cause a major delay in the chain.
Choosing a solicitor with a hands-on approach to communication is vital when in the middle of a property chain. Your solicitor will be the main contact between your buyer’s and your seller’s solicitor, it is therefore essential that respond quickly to calls and emails from all parties, in order to keep the chain moving along.
A property chain happens when one transaction depends upon another. Sometimes delays can happen due to issues that are beyond your control, however there are some things that you can do to effectively monitor the progress of the chain.
Good communication between the buyer, seller, estate agent and solicitor will ensure that everyone in the chain is working towards the same target completion date.
As soon as surveys and local searches are completed and any arising issues are dealt with, it is time to set a completion date and exchange contracts. Contracts will not be exchanged until your solicitor is confident that all issues have been dealt with and you are happy to authorise the exchange.
As soon as all parties in the chain are in a position to exchange, your solicitor will arrange to exchange. Contracts are typically exchanged by telephone. A paper copy of the contracts will be sent to the seller and the buyer’s solicitor.
Exchange can take place weeks or days before the agreed completion date – or even on the day of completion.
The final step in the process is to organise your move. You may need to book a removal company to help you pack up your things and move to the new property. You will also need to take and submit meter readings for your existing and new property, to ensure that your future utility bills are correct. You will typically pick up the keys for the new property from the estate agent, unless other arrangements are made between yourself and the seller.
True Solicitors LLP are residential conveyancing solicitors. We offer a fixed fee, No Completion, No Fee guarantee. Contact us today for a competitive conveyancing quote.
