Aside from those who are purchasing a property for the first time or property investors who are expanding their portfolio, the vast majority of people who are buying a new property will also be selling a property at the same time. Undertaking these two transactions simultaneously has a number of benefits and more often than not, it is the only solution available that is both suitable and convenient for homeowners.
Whilst you are able to buy first and sell later or sell first and buy later, both of these alternative options come with a number of challenges for a huge percentage of people that are purchasing a new property. However, whilst buying and selling simultaneously seems like the only logical solution, unfortunately, it isn’t always as straightforward as homeowners assume it will be and it can be a stressful task.
To help any homeowners who are considering buying and selling properties simultaneously, below we have looked into some of the most common mistakes made during these conveyancing transactions.
Using two Different Conveyancing Solicitors
People tend to assume that they have to use different solicitors for the sale and purchase of two different properties, but this really isn’t the case. In fact, doing so can actually make the whole simultaneous transaction process much more complicated. Ideally, you should find a conveyancing solicitor or a licensed conveyancer that is able to handle the conveyancing for both the sale and purchase. Having everything under one roof can simplify things significantly.
Putting Offers in on Properties without Preparing your Property
It isn’t uncommon for homeowners to start browsing the market, viewing properties and even putting offers in on new homes that they’d like to purchase without even preparing their own property for sale and putting it on the market. This can go on to cause a whole host of problems and worst-case scenario, you can end up losing out on the new property you wanted to buy. So, all homeowners should ensure that their sale isn’t overlooked right from the outset.
Not Getting a Mortgage in Principle
Many who are buying and selling simultaneously will be wanting to purchase a more expensive property than what they’re selling. Unfortunately, people don’t speak to a mortgage advisor and simply assume that they will be able to get a bigger mortgage for a new property, but this isn’t always the case. To avoid any issues later down the line, it is important to get a mortgage in principle before you start looking at properties, you will then know exactly what you can afford.
Relying Solely on the Proceeds of Sale
Almost all homeowners will use money from the sale of their home to help them buy their new property and many will rely on this money, especially for their new deposit. However, those who are solely relying on the proceeds of sale can end up in a situation where they don’t have enough money to buy their new property if their house doesn’t sell for as much as they were hoping. For this reason, it is essential to have some savings to fall back on if you need to.
Being Unwilling to Compromise
When you buy and sell simultaneously, it is highly likely that you will enter what is referred to as a ‘chain’ and there will be a number of other properties in the chain that influence your transactions. A big mistake people make is being unwilling to compromise and help the other homeowners in the chain. As you may expect, this can cause lots of difficulties and potentially even cause breaks in the chain, so ideally, you should be as flexible and helpful as possible.
Finding a Conveyancing Solicitor near you
Hopefully, now that you’re aware of these common mistakes made during a simultaneous transaction you can ensure that you’re not making them too should you decide to go ahead and buy and sell properties at the same time. More often than not, the advantages of simultaneous conveyancing transactions do outweigh the negatives, so with the right conveyancing solicitor by your side, the process is possible and it can actually be quite smooth.
If you’re looking for a local conveyancing solicitor that can assist you with the conveyancing of both your sale and purchase, please visit the Location Lawyer website today. We can connect you with conveyancing solicitors in Guildford, Manchester, Cardiff, Southampton and throughout the rest of the UK too. No matter where you may be, with a simple search on our website you will be able to find local law firms with experienced solicitors who can assist you with the conveyancing process.