Why some owners choose to buy first
The property market does not stop and wait for you to sell. A property that matches your plans exactly can come up at any time. If you have not yet sold, you risk missing it. That is the main reason why some owners choose to buy before selling.
This strategy offers real freedom of choice. You can take the time to find the ideal property, without the pressure of a deadline imposed by your own sale. You can also negotiate more calmly, without the urgency of having to close quickly.
The risks to anticipate
The financial risk
Buying before selling means financing two properties at the same time for a period. If you do not have the necessary personal funds, you will need a bridging loan. This short-term loan has a cost and a limited term. If your property does not sell within the expected time frame, the situation can become financially tight.
Before committing to a purchase, carefully assess your ability to carry two loan repayments at once for several months. Consult your bank adviser for the precise terms that apply to your situation.
The risk of a rushed sale
If your property does not sell as quickly as expected, financial pressure can push you to accept an offer below the property's real value. That is the scenario every owner wants to avoid. A realistic valuation of the property to be sold, carried out before committing to the purchase, is essential to assess this risk.
Market risk
The property market can change between the moment you buy and the moment you sell. A fall in prices or a slowdown in demand can lengthen the time on the market and reduce the proceeds of the sale.
The conditions for it to work
Buying before selling can be a good strategy if:
- Your current property is easy to sell, in an active area and at a realistic price.
- You have a reliable valuation and a clear idea of the likely time to sell.
- You have the personal funds or borrowing capacity to cope with a period of double outgoings.
- You have a plan B in case of delay: the option of letting your current property, a reserve fund, etc.
The bridging loan as a transition tool
A bridging loan is often the financial solution used in this type of project. It finances the purchase of the new property while you wait for the proceeds from selling the old one. The bank advances part of the estimated value of the property to be sold, which you repay as soon as the sale is completed.
A bridging loan has a cost and a limited term. It is granted subject to conditions and the amount depends on the estimated value of the property to be sold. Consult your bank adviser for the precise terms.
YOUHOME's support in this type of project
YOUHOME supports owners who wish to buy before selling. It begins with an accurate valuation of the current property, to estimate the sale proceeds and the likely timescale. A market launch strategy is then defined to maximise the chances of selling quickly and at the right price.
The aim is to secure the project as a whole, not merely to manage a single transaction.
