BY MAJELLA GALVIN
IT'S the home movers’ dilemma: to sell your current property before buying a new one, or vice versa?
With the supply of residential homes, especially in the second-hand market, at an all-time low, the challenge is considerable.
According to the DAFT Housing Report, the stock of second-hand homes is 27% lower than last year.
Many homeowners are understandably hesitant to make a move.
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 a new one
Imagine you start searching the portals and property pages and find a potential new home. Exciting, right?
When you contact the estate agent for a viewing, they will ask about your position.
As part of their due diligence, they need to establish whether you are able to proceed.
If your own property is not yet on the market, you won’t be seen as a ‘hot buyer’ compared to others who may not have a property to sell.
Thus, if you want to make an offer, it’s likely that the seller will not accept it because you are not ready to proceed.
They wouldn’t want to delay their sale by making the saleability of their property reliant on the sale of yours. But it doesn’t stop there.
If the seller did agree to accept your offer, you would then need to sell your own property quickly, which might mean letting it go at a lower price than you would have liked.
Moreover, estate agents offer off-market properties which do not make it to the portals to those who are considered hot buyers.
So, if you’re not in a strong buying position, it’s likely that you will not hear about these properties.
Advantages of selling first
In the competitive landscape of County Cork’s property market, adopting a sell-first approach is strategic. 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 gives you 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 I 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 may look at options such as staying with family, renting (though supply is very limited), or negotiating a longer-term contract with the buyer to give you more time.
I recently dealt with a transaction where 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 are open-minded in their desperation to secure a home.
My top advice
Drawing from my experience as an estate agent, I’ve learned that 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 proactive steps you can take:
Find 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.
Clearly communicate your plans – share your intentions with your chosen agent.
Discuss your preferences, desired locations, and the timelines you’re working towards.
Clear communication from the outset can prevent misunderstandings later on and might even lead to assistance in finding a suitable property.
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, capture enticing photos, 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.
By prioritising a sale agreement for your current property before diving into your home search, you position yourself 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 next dream home.
With careful planning and proactive communication, you can make the right move in the property market.
Majella Galvin is 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 and is Chair of the Southern Region of the Society of Chartered Surveyors Ireland.
