What happens if you can’t sell your house but want to buy another. If your house isn’t selling, but you still need to move, what are your options? Let’s take a look…
I Can’t sell my house but want to buy another in brief:
If you can’t sell your house but you want buy another, consider dropping the price of your house to encourage interest. But if you can’t wait for it to sell using an estate agent, your quickest and best option is to sell to an investor. But then you don’t have to sell at all, you could instead let it out to tenants.
My house isn’t selling what can I do to still move home – What are your options?
These are realistic options if you can’t sell your house but want to buy another, and include:
- Practical solutions to get your house sold quickly.
- Options that include not selling your house at all.
So let’s take a look at these two main solutions in more detail.
1. Options to get your house sold quickly
What are the options to help sell your property more quickly if you want to buy another house. These are your options to sell your house quickly:
- Sell to a ‘cash home buying company’ or investor.
- Sell for ‘cash’ to an investor using a lease option.
- Use an auction to sell your house.
- Drastically reduce your asking price – by at least 10% off the asking price or market value.
- If you’re buying a new home, look for builders that offer a part exchange deal.
- Consider an assisted house sale.
Depending on your situation and reason for moving, may help you to decide on which of the above solutions are realistic for you. But you may decide not to sell your house at all, see below for more on this option.
But assuming you choose to sell, rather than not in order to move to another house, let’s look in a bit more detail at the above six solutions.
Sell for ‘cash’ to a ‘cash home buying company‘ or investor
If selling your home to an investor or cash home buying company means you’ll have cash in your bank possibly within 28-30 days, you may opt for this solution. This is by far one of the fastest ways to turn your house into cash, to aid the purchase of another house, but there’s a catch.
The catch in this example, is that you’ll have to take a hit on the asking price. The investor (which in this case could be us by the way) or cash house buying company will usually offer somewhere between 75-80% of the asking price and possibly lower.
The priced offered will depend on a number of factors, one of which is the speed at which the transaction needs to take place. Another factor will be the state of repair of your house, plus what the options are for improvement or uplift in value.
For more details on this subject, please read the following article.
Sell to an investor using a lease option
If the concept of lease options is new to you, then you may wish to read some of the more in-depth articles I’ve already written on this subject. These include articles, as follows:
- Are lease options legal in the UK – The legality of lease option contracts in the UK.
- What are the risks of lease options in the UK (Are lease options a scam?) – Are lease options a win win, a win lose or a lose lose?.
- Selling my house on a lease option (Are lease options a good idea?) – Are lease options legal in the UK and are they a good idea?
- Lease option vs assisted sale (What’s the difference?) – Read about the differences here.
I’m hoping that you’ll take a read of the above articles first, if you’re interested in this solution to selling your house to buy another. But the basic concept of a lease option contract incorporates two elements.
These two elements are:
- A ‘lease‘ and;
- An ‘option‘.
The combination of these two elements into a property lease option contracts means that a buyer pays you an upfront amount (the option fee) so they have the right to buy your home at some point in the future.
The main benefits of this fast home buying solution includes:
- You get to sell your house fast.
- There are no mortgages involved.
- There’s no chain.
- You can often achieve market value or more, depending on how long the term the option contract is set.
- No estate agency fees if you come to us before you’ve signed up with an estate agent first.
- All terms included in the lease option contract are agreed upfront.
- Lease options are a win-win solution for you as the seller of the house and for us as the home buyer.
Once you understand the concept of a lease option and wrap your head around how they work, lease option contracts are a great way to solve your problem, and fast!
Selling by auction, reducing the asking price or looking for a part exchange for your house
These solutions are something you could opt for, but along with the benefits of these options, there are disadvantages too.
For example, selling by auction relies on there being a reasonable turnout on the day and a good level of interest in your property. But selling at auction can be costly and there’s no guarantee your house will be sold at on the day.
Having said that it does still remain as a good alternative to selling your house fast to avoid being stuck in a chain if you sell using an estate agent.
Reducing the asking price
Of course by reducing the asking price you’ll not get as much as you’d hoped for. This may affect how much you can put towards the other home you’re looking to buy. It may also change how much you can afford to buy for.
Part exchange properties with certain developers
This solution relies on the fact that you are wanting to buy a brand new house. But if not, then this solution will not work. But also, not all developers offer a part exchange and it might be that the deal offered doesn’t suit you in any case.
Consider an assisted house sale
If you are able to run with this solution, an assisted sale is a fantastic win-win option for both you and the investor.
As with lease options, I’ve previously written articles on assisted sales. To make it easy for you to not lose your place in this article, I’ve made these links open in a new page.
Articles on assisted sale include the following:
- What is an assisted house sale (Assisted sale cash advance) – An assisted house sale can help you to sell your house fast for market value
- Lease option vs assisted sale (What’s the difference?) – lease options are a form of an assisted sale, but what are the main differences?
- We buy any house assisted sale (Assisted sale offer) – How do assisted sales work?
The best assisted sale is where you as the home owner end up with more than you would otherwise get. This is because we as investors look for ways in which we can add value to your house.
Essentially, we agree a price with you for your property as it stands. We then work out what could be done. This could include a simple renovation project, or it could be building an extension. Or it could be to convert your house into flats.
Which ever route is the best, we will work with you to maximise the uplift, which we share with you on an agreed profit split basis.
The uplift is the difference between what we agree is the present value and the uplifted value once all the works have been completed, less the cost of the works to transform your house and selling costs.
If you don’t like the sound of any of these solutions, let’s take a look at the options that include not selling your house at all.
2. Options that include not selling your house at all
Just because you can’t sell your house in order for you to buy another, doesn’t mean you have to. You could retain your existing property and keep it as an investment instead.
If you do decide to go down this route you need to consider the tax implications of this solution, as the UK government have made significant changes that will affect you. Not least the extra 3% Stamp Duty you’ll have to pay on a second home.
I have already explained the tax implications of buying a house before selling in the following article, which I recommend you read first.
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