How to Avoid the 10
Worst Property Selling Mistakes
Not Selling Before Buying Another Home
One of the more disappointing mistakes you can make as a home mover is to
set your heart on a new home, have your offer accepted and then find
yourself in a position where you need to rush to sell your current
This is a poor situation to find yourself in on 3 counts:
will now be shackled to a “property chain” & the success of
your purchase will be reliant on the performance of your buyer, your
buyer’s buyer & your buyer’s buyer’s buyer (etcetera
you’ll be so anxious to sell, you’ll reduce the strength of your
negotiating position as a vendor.
you’ll not be chain-free, your negotiating position as a buyer will
also be reduced. This makes you a likely candidate for being gazumped
over your preferred choice of new home by buyers that are chain-free.
|Of course you could take out a “bridging loan” so you can buy your new
home before you receive the cash from your sale however, this is an
expensive & risky strategy.
What happens if your current house doesn’t sell as quickly as you
thought it would?
You can quite easily find yourself in a position where you’re required
to pay-off two secured loans at the same time (and remember the interest
rates for “bridging loans” are more expensive than regular mortgage
The best remedy is to wait until you have received an offer on your
current property before you start any serious house hunting (that way
there’s minimal chance of “falling for” your new home until your
sale is well & truly underway).
Up until this point limit yourself to general research only & before
you put your house on the market make sure you know:
you want to move to?
kind of property you’re looking for?
that kind of property is available (i.e. often comes up for sale)?
you’re pre-approved for a mortgage?
the properties you’re looking for are within your price range?
Alternatively (and we realise that at
first this may seem like an unpopular idea) the safest course of action is
to sell, rent and then buy.
The only downside (besides the added
hassle of organising a rental) is that if it takes a long time to find a
new home (say 3-4 months) prices could have moved on to such an extent
that your buying power may be reduced.
To avoid this, answering the 5
questions mentioned above is essential. It’s the best way to ensure your
house hunting efforts are fast, focused & effective.
Gavin Brazg - www.TheAdvisory.co.uk
the links below to see the other mistakes
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