Here at Fowler and Powell we are asked regularly ‘Should I sell my house before I find?’
The way we answer this question it to firstly explain the different types of buyers that there are. We generally break this down into six different categories:
- Cash Buyers
- First Time Buyers
- Living in Rented Accommodation
- On the Market – SOLD
- On the Market – UNSOLD
- Not yet on the Market
We have placed them in this order because the top three are the most competitive position to be in when buying. We will explain why later. Let’s now consider the sellers point of view.
The Seller
Put yourself in the shoes of the seller. Ideally you would like to sell your house ASAP, at the best price, and without a chain. You would consider a small chain but ultimately you want the sale to go through with the minimum amount of fuss possible.
So I ask you, when you look at the list of buyers positions from a sellers point of view, which one of the buyers would you opt for?
I assume like us here at Fowler and Powell you would be opting for one of the buyers in the top three positions. If you chose something different then let us explain why the top three are the most preferable.
So I ask you, when you look at the list of buyers positions from a sellers point of view, which one of the buyers would you opt for?
I assume like us here at Fowler and Powell you would be opting for one of the buyers in the top three positions. If you chose something different then let us explain why the top three are the most preferable.
1. Cash Buyers
These buyers do not have to wait for their mortgage confirmation, nor surveys to be conducted by the bank, so the process is generally quicker.
2. First Time Buyer
This buyer will not have a chain, will have money readily available and will generally be very flexible with moving dates.
3. Living in rented accommodation
No chain is the main attraction of this kind of buyer, but they do often have some restrictions based on their notice period. If you choose this buyer it is always advisable to ascertain when their contract expires so you know whether they will want to move quickly, or are likely to drag out the process in accordance with their contract dates.
If you are not in one of the top three positions then you could end up having to offer more money for the house to entice the seller to opt for a less guaranteed, less quick sale.
Again I ask you, if you had the option of choosing a buyer who had offered the asking price and was a first time buyer OR a buyer who had offered the asking price but hadn’t put their house up for sale yet, who would you choose? Of course, you would choose the first time buyer. However if the buyer who hadn’t put their house up for sale yet offered you £20K more than the asking price, who would you choose now?
We here at Fowler and Powell believe that if you are not in one of the top three positions, or at the very least don’t have your house up for sale, then you may end up paying £15-£20K more for the home of your dreams to secure the sale and make your offer attractive to the seller.
Accepted Offer
Lets now imagine that you have offered £20K over the asking price, and your offer has been accepted. In this instance there will usually be a clause with the offer acceptance stating that you must sell your house within 4 weeks, or similar. The pressure is now on to sell your house. In this instance it is not unheard of that the house will be marketed below its market value to secure a quick sale. Alternatively an offer could be accepted under the market value. In some cases offers up to £20K less, can be accepted to secure a quick sale. This would mean that you personally would be worse off by £40K. £20K more spent on securing the house, and £20K less paid for your home. In conclusion you could end up losing £40K because you weren’t in the best position possible when buying your dream home.
Here at Fowler and Powell we make sure that you are in the best position possible to buy the house of your dreams. Get in touch today to see how we can help you. Call 01138730087 or email hello@fowlerandpowell.co.uk
We hope you have found this information useful. For further information on buying and selling homes visit www.fowlerandpowell.co.uk/blogs Thank you for reading.
