Should you sell or buy first when moving homes?

Selling your current property first sets the stage for a less stressful journey to finding your dream home

By listing your property before diving into the search for your next house, you position yourself as a committed and attractive buyer.

Hi Majella
I wonder if you could help me with an issue. Our family is getting bigger — no 3 arrived three months ago — and after spending time at home, I’m convinced we need a bigger house with a garden. Our current home is fine, but it’s just a three-bed, and the garden is tiny. My husband isn’t so sure — he is involved with local clubs, etc, so if we move, he won’t want to go far. The problem is, there are limited houses for sale in the area that would suit our needs. My main question is: Should we find a new home first before putting our current home on the market? I’m worried that if we sell first, we won’t be able to find somewhere to move to.
— Jessica

Thank you for your query, Jessica, and congratulations on the birth of your third child. Indeed, a growing family demands more space. Ideally, you want to find a bigger home in your current area.

As you are no doubt aware the supply of residential homes, especially in the secondhand market, is at an all-time low. Whether you choose to buy or sell first ultimately depends on your unique circumstances and financial situation.

Firstly, let’s look at the downside of not putting your property on the market before finding an alternative home.

Let’s say you start searching the portals and find a property. It’s exciting as you’re thinking “Could this be the one?”. So, you contact the estate agent for a viewing. As part of their due diligence and duty to their client, they will need to establish whether you are in a position to buy.

When you tell them your own property is not on the market yet, with all respect, they are not going to regard you as a hot buyer, are they? That’s a huge disadvantage when you are competing with other buyers, some of whom may be cash buyers. So, if you want to make an offer on that property, it’s not likely that the seller will accept it because you’re simply not in a position to proceed. They won’t want to delay their sale by effectively making the saleability of their own property reliant on the sale of yours.

But it doesn’t stop there. Let’s say the seller did agree to accept your offer. This would mean that you would have to sell your own property quickly, which may mean you might have to let it go at a lower price than you would have originally liked. Furthermore, estate agents offer off- market properties which do not make it to the portals to hot buyers. So, if you’re not in a strong position it’s likely that you will not get to hear about these properties.

Advantages of selling first

In the competitive Munster property market, adopting a sell-first approach can be a strategic move. By listing your property before diving into the search for your next house, you position yourself as a committed and attractive buyer. Sellers are more inclined to entertain offers from individuals who have already initiated the selling process, recognising the reliability and readiness they bring to the table.

Additionally, selling before buying arms you with negotiation leverage. Armed with a sale agreement for your current property, you can negotiate more confidently and potentially secure better deals on your next home.

“What if my house is sale agreed and we can’t find another one?” This is a common fear among homeowners. If your property is sale agreed and you haven’t found anything you might have to look at options such as staying with family. Is renting an option? I know supply is very limited here too. Perhaps you can negotiate a longer-term contract with the buyer to give you more time. I recently dealt with a transaction whereby the seller wanted a longer period to find accommodation and we discussed this with the buyer who was renting and willing to delay the closing date. This doesn’t always happen but in today’s competitive market, buyers can be open to different arrangements.

Top tips

I think the key to navigating this dilemma is to be proactive and prepared. Even if you’re not ready to actively market your property, there are steps you can take including:

• 1. Finding an estate agent: Begin by conducting research to find an estate agent that aligns with your goals. Get your home valued and appoint an agent who understands your vision.
• 2. Clearly communicate your plans: Discuss your preferences, desired locations, and the timelines you’re working towards with your chosen agent. Clear communication from the outset can prevent misunderstandings later on and might even lead to assistance in finding a suitable property.
• 3. Prepare in advance for success: The initial introduction of your property to the market is critical for success. Take the time to ensure all details are accurate, arrange to get attractive photos taken, create floor plans, and obtain a BER. If your agent has all this ready when you find your dream home, they can kickstart the marketing process immediately. Engaging an agent early also allows them to create anticipation, informing potential buyers that your property is coming soon, heightening interest.

While individual circumstances are different, I believe prioritising a sale agreement for your current property before diving into your home search positions you as a motivated buyer, streamlining negotiations and reducing the risk of losing your dream home. So, focus on selling your current property first, setting the stage for a successful journey to find your dream home.

Majella Galvin is chair of the Southern Region of the Society of Chartered Surveyors Ireland. A chartered surveyor, estate agent, and registered valuer at DNG Galvin auctioneers, Bandon, she has been working in the property sector for over a decade — www.dnggalvin.ie

If you have a property related query or issue you would like to raise with Majella, email: irishexaminer
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