Viewing Houses Before Yours is on the Market

When it comes to buying and selling property, timing is crucial.

Are you considering to start viewing houses before yours is on the market?

 While this approach may seem logical, it can actually put you at a disadvantage in the competitive property market.

In this insight, we will discuss the potential pitfalls of viewing houses before yours is on the market and provide some tips on how to navigate the process more effectively.

Key Takeaways

• Viewing houses before yours is on the market can put you at a disadvantage in a competitive housing market.
• Becoming emotionally attached to a property before selling your own can lead to disappointment if you cannot proceed with the purchase.
• Not having sold your existing home may result in limited bargaining power and increase the risk of being gazumped by other buyers.
• Selling your property before viewing houses gives you greater access to property viewings, increased negotiating power, and allows for accurate budgeting, enhancing your chances of securing your dream home.

Can You Start Viewing Houses Before Yours Is On The Market?

Yes, you can start viewing houses before yours is on the market. But when you do, an estate agent, is likely to ask about your scenario and probably determine that you're not a serious consideration for buying. Ultimately,

That's why it's not always a wise decision to start looking at houses before your own property is even on the market.

While there may be certain situations where it becomes necessary, such as relocating to a new area and exploring available options, you should evaluate the potential risks before scheduling any appointments.

Why Should You Sell Before Viewing Other Houses?

Having now made the point of what to be aware of, there are also reasons why you should sell your house before you start to view houses. These points can often put you in a greater position for when you are ready to make an offer:

Greater Access to Property Viewings

When your property is already on the market or under offer, you'll have greater access to property viewings. Sellers and estate agents are more likely to prioritise buyers who are in a proceedable position, which means you'll have a better chance of securing a viewing for your desired property.

Increased Negotiating Power

Having your property on the market or under offer puts you in a stronger position when it comes to negotiating the price of your next home. With the ability to move forward with the purchase quickly, sellers are more likely to take your offer seriously and be open to negotiation. 

For example, if there are two offers on the table, both for the same value, the likelihood is that the seller will accept the offer where the owners have already sold their house. By taking this approach, it reduces the risk of the sale falling through.

Accurate Budgeting

By selling your property first, you'll have a clear understanding of your budget for your next property.

This will allow you to make more informed decisions about the properties you view and the offers you make.

You don't want to start looking at properties out of your reach. You can quickly become dissatisfied with the properties within your budget because of heightened expectations. 

Becoming Overly Attached to a Property

If you start viewing before selling, try not to become too emotionally attached to a property before you're in a position to make an offer. This can lead to disappointment if you're unable to secure the property once your own home is on the market.

Rushing the Process

Avoid the temptation to rush the process of selling your current property to secure your dream home. Take the time to ensure you achieve the best possible price for your existing property to maximise your budget for your next home.

Missing Out on Your Dream Home

Humans are emotional people and one of the biggest risks of viewing houses before yours is on the market is the emotional aspect. It's not uncommon for homeowners to fall in love with a property only to realise that they cannot proceed with the purchase because their own home has not yet sold. This can lead to disappointment and frustration as you watch your dream home slip through your fingers.

Limited Negotiating Power

If you find a property you love but haven't yet sold your existing home, your offer may not be taken as seriously as those from buyers who have already sold their property. This can put you at a disadvantage when it comes to negotiating a good price for the property you want to purchase.

Risk of Gazumping

Gazumping occurs when a seller accepts an offer from one buyer, only to later accept a higher offer from another buyer. If you're not in a proceedable position (i.e., you haven't sold your current home), you're more likely to be gazumped by another buyer who is ready to proceed with the purchase.

When Is The Time To Start Searching for a New Property

You have to find the balance between selling your current property and finding your next home. You don't want to be left homeless or forced to rush into a purchase that doesn't meet your needs.

The following tips can help you determine when to start searching for a new property:

Get your Finances in Order

Before you start viewing houses, you should have a clear understanding of your financial situation. Speak with a mortgage adviser to get an idea of how much you can borrow based on your income, savings, and the value of your current property. Be sure to arrange a mortgage promise and check your credit score, preventing any delays down the line.

Speak to Estate Agents

Once you have a clear understanding of your financial situation, reach out to estate agents to discuss the sale of your current property. They can provide valuable insight into the local market and help you determine the best time to sell your home.

Monitor the Market

Keep an eye on the property market in your desired area. This can help you identify trends and determine the best time to start viewing houses.

What to Do If You Find A New Home Before Selling Your Property

If you find your dream home before selling your property, you do have a few options, but these should be considered a last resort and not always the smartest decision:

Arrange a Bridging Loan

A bridging loan is a short-term loan designed to help homeowners purchase a new property before selling their existing one. This can be a viable option if you're confident that you'll be able to sell your current property quickly. However, it's essential to carefully consider the risks and costs associated with bridging loans before proceeding.

Renting Out Your Current Property

If you're unable to sell your property quickly, you may consider renting it out and purchasing your next home using a buy-to-let mortgage. This option will require a larger deposit and may come with additional responsibilities as a landlord, so it's essential to carefully consider whether this is the right choice for you.

Delayed Completion

Another option is to negotiate a delayed completion with the seller of your dream home. This allows you to secure the property while giving you more time to sell your existing home. However, this approach may not be suitable for all sellers and may require a higher deposit to secure the deal.

Seeking Professional Advice

Navigating the property market can be complex and stressful. Seeking professional advice from an estate agent, mortgage adviser, or conveyancer can provide valuable guidance and support throughout the process.

Viewing houses before yours is on the market can be a risky approach, often leading to disappointment and missed opportunities. By selling your property first, you'll be in a stronger position as a buyer, giving you the best chance of securing your dream home. With careful planning, open communication, and professional advice, you can successfully navigate the property market and make your next move a smooth and enjoyable experience.