Is buying and selling a house simultaneously a good idea?

Moving straight from one house to another saves you the hassle of finding temporary accommodation or putting your belongings into storage.

You’ll know exactly how much you’ve got from your sale, making it easier to budget for your next home.

Managing one mortgage is much easier (and cheaper) than juggling two at once, which is what might happen if you buy first.

If house prices are climbing, buying while selling means you won’t risk being priced out if you wait too long.

Selling and buying simultaneously can mean fewer worries about clashing schedules or overlapping deadlines.

Balancing two big transactions at once can feel overwhelming, especially if one hits a snag.

You’re at the mercy of others in the chain—if someone delays or pulls out, it can throw everything off.

Finding a buyer and your next dream home at the same time can be a race against the clock.

You might feel pressured to settle for a less-than-perfect home or accept a lower offer on your sale to keep everything moving.

If your sale and purchase don’t line up perfectly, you might need a bridging loan to cover the gap—and these can get expensive.

If your buyer or seller backs out, it could jeopardize both transactions, leading to a lot of stress and wasted time.

When selling a house, your estate agent acts on your behalf, representing your interests. However, it’s important to carefully review your agreement with them to avoid misunderstandings or disputes.

If you’re unhappy with their services, such as poor advertising or inaccurate listings, you may need to file a complaint. All estate agents must belong to a government approved redress scheme, such as The Property Ombudsman, or The Property Redress Scheme, which can help resolve disputes.

Disputes are common. To avoid surprises, make sure that the final bill aligns with the agreed terms in your contract. Fees should clearly list the commission, advertising costs, and VAT. If there’s a disagreement, seek advice before paying.

If you’re dissatisfied with your estate agent, you can switch, but be cautious. Contracts often include clauses that may require you to pay fees even if you switch agents, especially if the original agent introduced the buyer.

If you’re buying and selling simultaneously, you’re part of a chain. If one sale in the chain is delayed or collapses, it can derail everything. Common chain related risks include:

• Delays: A buyer or seller in the chain might face financing issues or delays in paperwork.

• Collapses: If someone pulls out, the entire chain can fall apart, leaving you back at square one.

• Gazundering: Buyers may lower their offer just before contracts are exchanged, leaving you with the tough choice of accepting less or starting over.

• Gazumping: On the flip side, sellers can accept a higher offer from another buyer before contracts are exchanged, causing you to lose the property you planned to buy.

You may have to arrange temporary accommodation or storage if your sale completes before your onward purchase. Alternatively, you might need a bridging loan, which can be costly, to cover the gap between transactions.

If your mortgage application is delayed, it can stall the entire process. Sellers might lose patience and look for another buyer, leaving you scrambling to save the deal.

Mortgage lenders reject applications for unusual properties or insufficient income. If this happens, you might have to start the mortgage process with a new mortgage lender, adding time and stress.

Surveyors and valuers play an important role in both buying and selling. However, issues can arise, including:

• Undervalued properties: A lender’s valuation may come in lower than your agreed purchase price, which could force you to renegotiate or find additional funds.

• Missed issues: If a surveyor overlooks problems with the property, such as structural damage, you might experience unexpected repair costs later. In some cases, you may be able to claim compensation if negligence can be proven.

Until contracts are exchanged, buyers and sellers can legally back out for any reason. If a buyer withdraws, you’ll need to find a new one, which can delay your onward purchase.

Between exchanging contracts with completion, the seller is responsible for the property, but the buyer must insure it. If damage occurs, the buyer may have to cover repairs through their insurance.

Sellers are obligated to leave agreed upon fixtures, but disputes over what should stay or go are common. If something has been removed that should’ve been left, talk to your solicitor.

Being chain free makes you a more appealing buyer. Sellers are more likely to choose your offer, even if it’s not the highest, because there’s less chance of the deal falling through.

Without the pressure of selling your current house first, you can take your time and wait for your dream home to come along. No need to settle for something that’s just “okay.”

This strategy lets you play the market. You could buy when prices are lower and sell later when the market is hotter, potentially giving you the best of both worlds.

If you buy a new property before selling your existing one, you could still end up in a property chain. For example, if your new property depends on the seller moving into their next home, or if your eventual buyer is dependent on selling their home, these create links in the chain.

Here’s the catch: if you buy before selling, you’ll technically own two properties, which means higher Stamp Duty Land Tax rates. This adds a 5% surcharge on top of your standard Stamp Duty rates (you can reclaim the additional surcharge if you sell your previous residence within 3 years of buying another).

Owning two homes simultaneously may expose you to Capital Gains Tax when you eventually sell your former home, as it’s no longer your primary residence. This tax applies to any profit made on the sale of a home that’s no longer your main residence.

Let’s be real – this is the biggest hurdle. Buying a new home while still owning your current one can be a financial stretch. You may need significant savings or look into options like a bridging loan to make it work.

Selling first makes you a chain-free buyer, which is incredibly appealing to sellers. With no sale of your current property holding things up, you’ll be in a stronger position to negotiate on price and terms.

However, while selling your house before buying another would usually remove you from the property chain, a chain can still occur on the buyer’s side if they are selling their home to afford buying yours.

Once your property is sold, you’ll know exactly how much money you have to work with. This eliminates the uncertainty of relying on achieving a specific sale price to fund your next purchase.

Because there’s no overlap between owning two properties, you won’t need to pay extra Stamp Duty Land Tax (SDLT) or Capital Gains Tax (CGT).

Chain-free buyers are less likely to be gazumped, as sellers prefer the reliability of dealing with someone who isn’t entangled in a lengthy chain.

Selling first allows you to establish a strong rapport with your estate agent. This relationship can benefit you when you’re ready to buy, as the agent may prioritise you with new listings that fit your criteria.

If you sell before finding your next property, you might need to rent. This could mean staying in temporary accommodation longer than expected, which can be costly and inconvenient.

In a hot market where prices are climbing, selling first could mean you miss out on lower-priced properties. By the time you’re ready to buy, prices may have risen, making your next purchase less affordable.

Selling first often means moving twice—once into temporary accommodation and again into your new home. This doubles your removal costs, adding to the overall expense of the process.

Renting after selling typically involves a fixed-term lease. If you find your next home during this period, you’ll still be obligated to pay rent, even after you’ve moved out.

Downsizes are usually moving to smaller homes, whether to free up money, reduce maintenance or adapt a quieter lifestyle. Because most downsizers aren’t buying again, they can offer  a sense of certainty to those further down the chain – they may be going into rented accommodation, assisted living or their children’s homes.

For sellers transitioning to assisted living, the sale of their property is often tied to practical and emotional needs. The funds might be needed for care, making a smooth and timely sale crucial. While their situation may add some urgency, they’re generally flexible and motivated to sell.

Sellers opting for rented accommodation are chain free on the buying side, which makes them desirable to others in the chain. Since they don’t have to wait for a new purchase, they keep things simple and help the chain move smoothly.

Inherited properties have their own challenges, and the process can be slowed down by probate, legal paperwork, or family decisions about what to do with the property. While these sales don’t usually involve buying another property, they require a lot of care to avoid delays for the rest of the chain.

First time buyers are a fantastic option when selling your home. They don’t have an existing property to sell, which makes them chain-free and in turn, less likely to cause delays. These buyers often rely on savings or a mortgage, so their position can be influenced by factors of lender approvals, but overall, they are much simpler to deal with. 

For sellers, this means a smoother and faster process, which is why first-time buyers are highly valued in a property chain.

Property investors and Buy To Let landlords are also an excellent option. These buyers are usually motivated by financial opportunities, such as rental income or long term capital growth, rather than personal housing needs. Which means their ability to proceed quickly and their chain free status make them valuable participants in any property chain.

Cash buyers are considered the holy grail in any property chain. They don’t need a mortgage or loan approval, so they can move quickly and without the risk of financial issues or delaying the process.

Cash buyers might include property investors, retirees or individuals who have the funds readily available. Because they aren’t reliant on selling another property or waiting for lender decisions, cash buyers are incredibly appealing to sellers who want to avoid unnecessary complications.

Inherited properties have their own challenges, and the process can be slowed down by probate, legal paperwork, or family decisions about what to do with the property. While these sales don’t usually involve buying another property, they require a lot of care to avoid delays for the rest of the chain.