It’s a common dilemma if you’re looking to move up the property ladder – do you put your house on the market before or after you have found your ideal new home?

Let’s take a look at an example…

The average semi-detached home in Telford is currently worth £143,000, while the average detached is £250,000.

How do you narrow that gap of £107,000?

By maximising your bargaining power, that’s how!

If you put your house on the market first, you will have time to generate good interest without the pressure to accept anything less than your desired price. You will then be in a strong position to negotiate harder from the outset on your chosen detached property.

Even if you only knocked 2% off your purchase, assuming the asking price was that average value of £250,000, you could get the gap down to £102,000 – your purchase price of £245,000 minus your selling price of £143,000.

But if you wait until finding your perfect new home before putting your own house on the market, you’re in a potentially very different position.

Firstly you risk having to offer the asking price on your new home to persuade the vendor to wait while you try to sell.

And secondly, you would then be under the potential pressure of accepting a lower offer on your own home so you don’t miss out on the house you want.

Using the same thinking as before, let’s say you accept 2% under your asking price, so £140,000, and you offer the full asking price of your chosen home – £250,000. That puts the gap up to £110,000.

So you see, by getting your house on the market early you could save yourself £8,000!

Please feel free to give me a call on 01952 292 300 for more property advice.

James

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