Why you should sell your home before buying your next property

Thinking of selling your home in Scotland this year? Paul Clancy, Property Director at Clancys Solicitors, has some sage advice before you get started.

Despite the uncertainty of the last two years, the housing market continues to boom with demand outstripping supply, creating something of a catch-22, with homeowners reluctant to come to market until they have found their next home.

With properties selling so quickly, there’s a great disadvantage for bidders who are yet to sell their own property.

It’s an all-too-familiar story - clients who are considering selling are proactively searching, but are reluctant to start selling until they have secured their next home. The reality is, trying to secure your next home when you’re still to sell, makes it more difficult (near-impossible in the most popular areas).

ESPC reports 35% of homes going to closing dates during November-January. At closing dates, you’re likely to be competing with other bidders who’ve already sold, or didn’t need to sell a property in the first place. This makes a ‘subject to sale’ offer far less attractive, unless your offer is significantly higher than the others. It’s not uncommon for second- or third-highest bids to be accepted if they were chain-free or from a cash buyer, over a ‘subject to sale’ bid.

New-build houses are increasingly popular for those looking to buy without a bidding war, but the market here has experienced a similar supply-and-demand imbalance, with homes selling out within days. As a result, many new-build developments won’t allow you to reserve unless you’ve already sold or accepted an offer on your property.

In order to try and beat this catch-22, you need to market your property first. In this sellers’ market, you can dictate the timescales, within reason. Transparency is best – let interested buyers know that completion dates will depend on when you secure your next home. You’ll find that most buyers will be willing to accommodate this.

Starting the sales process before you purchase also gives you the advantage of knowing your buying budget. Some areas have experienced double-digit annual growth, with properties achieving significantly above the Home Report value, and we’ve seen clients achieve far more than our expectations, increasing their budgets for their next home – so it makes sense to sell first.

For more information or to get started with a free home valuation from Clancys, visit clancys-solicitors.co.uk or call 0131 337 7771.