Under Offer But Can’t Find A New Home? What Should You Do?
Guide To Selling Before You Buy
If you’ve received an offer you can’t refuse, what should you do whilst you wait to find your own dream home?
It’s a vendors’ market at the moment, as buyers rush to secure offers on homes they love whilst taking advantage of the government’s stamp duty holiday. Up until March 31st, 2021, buyers will pay zero stamp tax on properties worth up to £500,000 so long as they’re being used as a primary residence. This can effectively save buyers up to £15,000 which is a colossal amount and has truly got the property market in a frenzy following lockdown.
If you’ve been lucky enough to have already secured an offer on your property, then congratulations. This is fantastic news and you’ve already leapt over the first property hurdle – bearing in mind that some homes can be on the market for a year or more! But where it becomes tricky is if you haven’t personally found anywhere to move to. If you’re in this position, what options are available to you?
Strong Position For Your Purchase
Now that you’re already under offer, you’re in an incredibly strong position when a property you love does come on the market. The vendors of your next dream home will know that you’re able to proceed, which is an attractive prospect to them. If you go ahead with your sale before you find anywhere else to buy, then this also means that you’d be approaching a vendor chain-free. A property solicitors Essex firm asserts that this type of position may even enable you to knock a little more off the asking price.
Of course, the problem with selling before you manage to buy is the small question of having a roof over your head. Where are you supposed to live indefinitely whilst you wait to find the property of your dreams? Staying with family members would be a fantastic solution as it hopefully wouldn’t cost you anything. But if this isn’t possible, then you could look into the option of renting somewhere. Your estate agent may be able to advise on an appropriate letting for you. However, be aware that this may end up being quite a pricey scenario as rental costs are rarely cheap, and you may need to pay for a storage facility for your belongings also.
Preparing To Find Your Dream Home
As soon as you go under offer, you’ll need to put significant preparations in place as you search for your next home. Begin by speaking to your mortgage broker or mortgage provider to give you an accurate idea of affordability. You may choose to obtain a mortgage in principle which will allow you to proceed quickly, although these typically only last for one month. You should also register with all local estate agents in your area so that they alert you to any new properties before they hit the free-for-all of the search portals.
If you find yourself in the position of being under offer without having secured a home to move to, then don’t panic. Nothing is legally binding until you’ve exchanged. The key is to keep the channels of communication open and explain your position to both your agents and solicitors so that they’re able to inform all parties of the situation.