What to Do When You Sell Your Property but Haven’t Bought Somewhere New
It’s getting more and more common for people to sell their homes without actually buying somewhere first. Sometimes it’s due to the market: if you’re worried about selling, then you’ll want to take a great offer when it comes in, as you don’t want to turn good money down. Or, you might have sold your place and been ready to move to your new property – and the sellers back out of the sale. Loads of reasons can cause people to sell before buying, and while it seems daunting and scary, it really doesn’t have to be. Yes, there are certain challenges, like storing all your furniture and finding temporary accommodation, but they’re all easy to overcome.
Look for temporary accommodation
Once the sale goes through, it’s time to act. You need to secure your temporary accommodation. The faster you can get it done, the less stressed you’re likely to be, and the quicker you can get on with normality. If it’s just you, or you and a partner or friend, you’ll easily find somewhere – whether that’s sleeping in spare rooms of friends and family, or renting a room or apartment nearby. However, if you have children or pets, you’ll need to put more effort into the search. Renting might be harder, but you’re more likely to have a bigger family who can help put you up. Ask around, and see what and where people can suggest. If you’re moving to a new area, you can use this as a test run: rent somewhere near to where you want to buy, and start familiarizing yourself with the local facilities and people.
Decide what you’re taking with you, what’s staying, and what’s being stored
One of first things you need to do is work out what to do with all your belongings. If you’re lucky enough to be staying with family or friends, then you can afford to pay a bit more to put your furniture and items in professional storage. Find a company that gives you easy access – some can restrict how often and when you visit. If you’re renting somewhere that’s a similar size to the property you’ve sold, then you won’t need to worry at all. However, if you’re going to be staying in a single room, then you need to be ruthless. Pack like you’re on holiday and only take the essentials.
Work out how much you can spend on a new place
Once the sale starts going through, you can use tools like a capital gains calculator to work out exactly what you’ll be making. Using this will give you a clear indicator of what you can afford, and how likely you are to be able to buy the property you want. Knowing this will also give you the confidence to spend what you need to in the interim period: if you need to rent, you’ll know exactly how much you can spend.
Things are likely to move to quickly once the contracts have been signed, especially if the chain isn’t dependent on you buying anywhere. So, start getting packed up as soon as you can, to enable the new buyers to move in at their leisure.