Chicken or Egg - Tortoise Property

The Tortoise or the hare? Let’s talk chicken or egg!

Mike Matthews, Tortoise Property

Is it better to purchase first, or sell first? We ask the experts ...

The chicken or the egg? A question that has passed down through generations without a perfect answer. So, how does this question translate to the current housing market? Currently, many of you are asking us ‘do I find a place to buy first, or do I put mine on the market?’ Then the quickfire questions we hear are as follows:

If I put mine on the market and I do not find a property, what then? If I wait for a property I like, how do I buy it before somebody else does without selling my own? What if I sell my property and go into rented accommodation? Hold on! Take a breath, I have not answered the first question yet! So, there is never a perfect balance. There are seller markets and there are buyer markets. Currently, the majority of the country has been in a sellers’ market during the pandemic. A sellers’ market really tilts the balance and it does not take too long for the supply of homes to dry up. And, it always seems to be the case that homes in your price range, with the number of bedrooms required, in the right location seem to be in short supply.Also, when this happens, many people freeze. This stops the movement in the market. There are many people just waiting for you to put your property on the market and as soon as you do, they will too! We have reached a point where someone has to move first. When they do, as you can see from any market stats, the property goes under offer in weeks, sometimes days. So, here are some options if you are looking to move:

Sell, rent, then buy?

Upside: This gives you some flexibility. You have deposits in the bank, agreement in principles ready and Rightmove alerts pinging daily. You can test the market with your marketing price and go for the highest price available without missing out on a purchase. Downside: A lot of rentals require a 12-month tenancy agreement, meaning that you can miss many opportunities while your tenancy runs down.

Market your property for sale?

Upside: This is a positive move. The majority of people moving will choose this option and have faith that the right property will be available when they want it. In most cases a home will be found that meets their requirements. You can test the market at a high price range. Downside: You cannot start to place offers on properties until your property is under offer. Then you have to negotiate a reasonable timeframe with your buyer to help you find the right property.

Prepare your marketing and launch within minutes of finding the right home?

Upside: You’re ready to go! But you’re not just relying on faith. You make a provisional offer for the home you like (Go BIG or Go HOME), you show your agreement in principle, you explain you can launch your property to the market immediately and agree a timeframe with a vendor, allowing you to launch and sell your property quickly. In a sellers’ market the wind is in your sails from the off, however, you have to price your property for sale perfectly to catch the initial gust. Downside: Someone who has sold might be in a slightly stronger position, so make sure your offer to purchase is reasonable. This will not work if you are trying to purchase your next home at a discount, nor will it work with an Estate Agent that just lists properties. Your property needs to be launched into the market. So, the chicken or the egg? You choose which one you want to start with, we can help with both.