How to Sell & Buy a House at the Same Time in South East London

If you’re hoping to move up the housing ladder in Bermondsey, Surrey Quays, Deptford, Canada Water or Bow, chances are you’ll be looking at selling and buying at the same time. While selling and buying at the same time isn’t as simple as being a first-time buyer, it is a necessary part of life for the vast majority of home movers – and a process that works well in most cases.  

There are ways to avoid buying a new home and selling at the same time. You could find a buyer and move into rented accommodation while you look for your next place, putting you in a better position as both seller and buyer. Or you could buy with a bridging loan, enabling you to secure your dream property while you wait for a buyer. Both of these options come with additional financial burdens, however.

So, if they aren’t for you, we go through the steps of selling and buying at the same time with handy tips to help at each stage of selling your home. 

The process of selling & buying a house at the same time 

Below we explain the step by step process to buying and selling a house at the same time in SE London. This will help you prepare for the various steps involved and understand what happens when.

1. Book a property valuation 

While there’s no harm in checking out property portals and estate agent websites for homes you might want to buy, it’s worth getting everything in place for your sale before you start viewing properties. Begin by getting a market appraisal of your property from at least three estate agents. That will give you an accurate idea of what your home is worth.

2. Get to grips with your finances 

With that potential sale figure in mind, you can assess your finances and work out how much you can reasonably afford to spend on your new home. Remember to factor in the costs involved to buy and sell a house, these include:

• Stamp duty – You will need to pay stamp duty when buying a new property valued at over £125,000, with rates charged based on the purchase price.
• Conveyancing fees – When buying and selling at the same time, you will have to pay conveyancing work on both properties. You might be able to reduce costs by using the same conveyancer to buy and sell.
• Survey fees – Buyers pay for the property survey to be completed. The cost will vary depending on which level of survey you request, ranging from around £300 to £1,500.
• Removals – Removal company costs are generally based on the amount of belongings you are moving, and the size of property if the removals team are packing and unpacking belongings.
• Mortgage costs – You might have to pay a mortgage arrangement fee and/or an early repayment charge, depending on the circumstances of your mortgage.
• Deposit – You may need to pay a deposit on your new home if there is not enough equity in the property you are selling.

3. Research your mortgage options 

If you need to increase your mortgage, start getting quotes now so you know your budget. Talk to your existing lender to find out if you can port your mortgage. Most mortgages are portable and will mean that you do not pay early repayment fees. Most lenders require you to complete on the property you are buying within 30 to 120 days after you sell a house when you port a mortgage.

If you are not able to port your mortgage, review your current mortgage deal and terms to check whether there are any early repayment fees if you are still within a fixed term period. Early repayment charges are around 1% to 5% of the outstanding balance, depending on how long is left of the term.

Look at comparison sites and other mortgage companies too, comparing fees such as any arrangement fees (typically £1,000 to £2,000) or booking fees.

It might be worth seeing a mortgage broker, particularly if you’re struggling to find a good deal or your circumstances make getting a loan tricky – if you’re self-employed, for example.

4. Get your property ready for sale

It’s never too early to start getting your current property ready for sale.

Gather all your key documents including any warranties. When you sell a house, you are legally required to have a valid energy performance certificate (EPC) before you market it. If you do not have a valid EPC, your estate agent will usually be able to help arrange one.

Get your property ready for the marketing photos, so that it is shown at its best. The aim when you prepare your home for sale is to make it look as spacious and bright as possible.

Clean everywhere thoroughly and consider a lick of paint – especially externally as first impressions do count. Complete any necessary DIY jobs around the home and clear the place of clutter, personal items and oversized furniture.

How your house is presented from the outside is very important as this is the first area viewers will see. You can boost the ‘kerb appeal’ by making sure the garden looks tidy, the front door and windows are clean and adding a new doormat and potted plants by the front door.

5. Pick your estate agent and conveyancer  

You’ve had your home valued at stage one, now you need to choose an agent. Remember that buying and selling at the same time could make the process more complex so think carefully about who you choose. Get plenty of information about each agent’s record of selling in your area. Look at reviews and testimonials and make sure you can work with them. Above all, feel confident they are used to managing complex sales and are proactive at keeping things moving.

The same also goes for the conveyancing firm you choose. Using the same one for buying and selling will make things simpler and reduce your costs.

6. Market your home and find a buyer  

Firstly, you will agree with your estate agent what price to market your current property for. You know your home best, so explain to your estate agent what you think the key features are so they can focus on marketing these.

Ensure your agent markets your property well

Check that the photos and property details your agent produces make the most of your home’s plus points and that you have the right exposure on all the property portals. Most estate agents will market your property on the main property portals such as Zoopla and Rightmove, as well as on their own website and social media accounts.

Get your home ready for house viewings

Make sure that your property is ready for viewings. Keep it tidy and depersonalise it by removing family photos, as this will help prospective buyers to feel like it could be their home.

Put your home on the market before looking to buy

Remember that it’s best to have your property on the market before you start looking at homes to buy, or you won’t be taken seriously. Having an offer on your property will make you a more attractive prospect for sellers.

Buying and selling at the same time means you may need to compromise to ensure things go smoothly. For example, you might need to think about accepting a lower offer from a cash or first-time buyer without a chain as this transaction will be more likely to go ahead without complications.

Watch out for gazundering

You’ll also have to watch out for gazundering, which is a particular problem to more vulnerable sellers who are part of a long property chain. When you are part of a chain, any issues further down on the chain can have a knock-on effect on your transaction.

7. Find your dream home and make an offer  

This is the exciting part, but with an offer on your own property it can feel pressured. While you’re looking to buy a new house that meets your criteria and falls within budget, you will make the process smoother by prioritising properties with no onward chain.

You can register as a buyer with estate agents so that you are alerted when a new house that meets your preferences comes onto the market.

Once you have identified a house you are interested in and checked the details on property portals, you will arrange a viewing to see it in person. You will know how much you can offer, as you will be able to calculate it based on the price you will receive for selling your house. When you find your dream home, your estate agent can submit an offer on your behalf.

8. Get everything in place 

When your offer is accepted, move quickly with the admin to give your transactions the best chance. Instruct your conveyancer on the purchase and organise a property survey. When buying a new home and selling at the same time, conveyancing work will be done concurrently for both properties.

You should also contact your preferred lender to get a formal mortgage offer and they will require a valuation from a surveyor before finalising the mortgage offer.

Your conveyancer will arrange for searches to be conducted, and you will complete the necessary paperwork, such as a TA6 property information form.

9. Completing your sale & purchase

Your conveyancer will set exchange and completion dates – again you may need to be flexible here as these will need to work for everyone in your chain. You will need to sign the contracts for both the sale and purchase, and your solicitor will arrange the transfer of funds on the completion date.

Work through all the processes for handing the property over, such as leaving paperwork related to the property for the new owners and passing keys for doors and windows over.

Finally, take a look at how long you are liable for after selling a house, and ensure you conduct the entire process legally and with proper due diligence.

If you’re thinking of selling property in New Cross, Stratford, Telegraph Hill, Victoria Park, talk to us. We have plenty of experience of selling and buying at the same time in the areas and would be delighted to guide you through the process, answering any questions or concerns.