Selling House to Buy elsewhere chain

getoutadodge

I'm mulling selling up in Dublin to move to a smaller town. My agent advised a five month duration from the point of offer accepted until the money is banked. My question is : how can I avoid the need to rent on a temporary basis until I close on a new home. Even looking at Rent a Room, it looks very problematic since people of my age (60) seldom do this and it raises red flags with house owners. I don't want to pull the trigger and find myself homeless come October. Do others manage to both sell and buy without a bridging rental? There are no banks involved since I'll be a cash buyer once the initial sale goes thru. Cheers!

listermint

The only way to mitigate would be to have your own preferred cash buyer to minimise banks involvement and choose a new property with similar setup .

But tbh anything could happen you are best planning for other outcomes. That includes staying with family if you needed to bridge.

Claw Hammer

You close your sale and your purchase simultaneo9usly. That is how you avoid renting.

getoutadodge

Can you elaborate?

When sale of my house is proceeding the EA, I assume, holds onto the 10% deposit but this is still no guarantee of completion. I suppose I could at that point pay the 10% on a purchase yet I am still at the mercy of the the sale being completed and the vagaries of solicitors etc

I have no family option as proposed by another poster...hence the dilemma

theteal

Am I reading this wrong or is this just a standard chain sale? You close your sale and purchase on the same day and get a wriggle on moving your stuff

gypsylee

Most people selling a property and buying a different one close both transactions on the same day.

The EA just holds a booking deposit, usually €5,000 or so. The balance of the 10% deposit is held by your solicitor. This is paid by the purchaser when signing the contract and is binding.

Dav010

Be mindful, in some cases EAs/sellers will not accept bids from people who need to sell to buy. So put your property on the market asap.

getoutadodge

Thanks for the tips.

At what point is the transaction irreversable?

At what point is the 10% payment forfeit?

My planning atm is:
1. Four weeks to final bid
2. Bid accepted and 10% payment made (most to my solicitor with EA taking 5 grand)
3. 4 Months for both solicitors to finalise conveyancing process
4. Balance paid to my solicitor and keys handed over of vacant property

Is this roughly correct?
Unless I win bid and pay deposit on new house immediately after stage 2 above I run the risk of being without a home

Maybe I am over complicating matters but any tips appreciated

Claw Hammer

getoutadodge wrote: »

Can you elaborate?

When sale of my house is proceeding the EA, I assume, holds onto the 10% deposit but this is still no guarantee of completion. I suppose I could at that point pay the 10% on a purchase yet I am still at the mercy of the the sale being completed and the vagaries of solicitors etc

I have no family option as proposed by another poster...hence the dilemma

The EA only holds a booking deposit. The balance of the 10% is held by solicitors. You don't sign the sale contract until you have a closing date from your vendors.

SMdPP87

Hi. Did you proceed in the end? I may find myself in a similar position and would appreciate to hear you experience, thanks.

getoutadodge

Seems a reply was lost in the ether so Ill try again

Selling going as anticipated. Where I live (central) is being hipsterised so the viewers reflect this along with the odd BTL investor.

The buying side is not so easy partly because the towns I have in mind have such a shallow pool. Usually 50 total listed with only 5 or so suitable for my specs and budget. One I wanted in Sligo went 35% over listed price before I pulled out.. but presumably because EAs generally undervalue to lure in viewers. Might be easier in nowheresville but I wont live in a village where a car is necessary for every daily errand.

EA guff I get as follows:

- covid refugees still fleeing city
- returning emigres working from home for their foreign employer
- low supply both new build and second hand
- at least Xmas before new build stock increases
- this pattern is global

All this might be the usual EA pitch but there is truth to the lack of stock both new and second hand. EAs seem to sniff out those in a chain and exclude them.

So in summary my plans may have to wait another year since I don't want to find my self homeless come October when another covid lockdown is not beyond the realm of possibilities
Ends

Claw Hammer

What you are finding is that other people have had the same idea as yourself. There has been little or no building in country areas since 2008 apart from one off houses. the ghost estates have been eliminated and the available stock is now only coming onstream in small amounts. Executor sales, investors cashing in and the occasional work transfer or moving within the same town. This is unlikely to9 change until there is building and the second hand prices reach a point where it is economic to build.

getoutadodge

If your analysis is correct (clawhammer) I may opt to go overseas. The prospect of another winter in Dodge may force my hand

markjbloggs

getoutadodge wrote: »

If your analysis is correct (clawhammer) I may opt to go overseas. The prospect of another winter in Dodge may force my hand

We are in exactly the same situation, and are considering the overseas option as well. Another winter locked down in this country does not bear thinking about.

Some of the newspaper headlines this morning were suggesting incentives for older people to sell their houses - I know this has been mooted before and the timing is uncertain, but what (if any) change to your thinking would this have?

atilladehun

I've heard a couple of cases where the estate agent will not deal with a buyer until the buyer has sold their own house. This is disgraceful.

Banks give bridging loans for this reason. It's a system that had issues but generally worked.

Estate agents are flooded with demand now and are doing what they want including telling sellers to only deal with cash buyers.

Claw Hammer

markjbloggs wrote: »

We are in exactly the same situation, and are considering the overseas option as well. Another winter locked down in this country does not bear thinking about.

Some of the newspaper headlines this morning were suggesting incentives for older people to sell their houses - I know this has been mooted before and the timing is uncertain, but what (if any) change to your thinking would this have?

In order for this to work there would have to be legal and practical help given to downsizers in addition to a financial incentive. Some government schemes achieve very little because they are not well though out and don't address all of the issues in the problem.
It is quite clear from posts on this forum that many people have a practical difficulty in moving, trying to get their own house sold and another bought without ending up in a limbo position of renting. It is hard enough for a young active person but is daunting for an older person. There would have to be an arrangement where they could reserve a house, sell their own and move in immediately with all legal and practical work handled for them.

At the moment none of that happens. If all that is done is that grants are announced, there will likely be a low take up.

Claw Hammer

getoutadodge wrote: »

If your analysis is correct (clawhammer) I may opt to go overseas. The prospect of another winter in Dodge may force my hand

Developments in Athlone will be revealing. Planning permission has been granted this week for about 600 housing units in a town with a population of 20,000. Another similar sized scheme is also in train. What this does to the second hand market and the rental market in Athlone will be instructive.

getoutadodge

None that I see (markjbloggs). Incentivising oldies (and I include myself in that category) to move house ain't easy. It goes with age and inertia. I've moved dozens of times both domestically and internationally over the years but have only one last move left in me. I wouldn't even consider it all except I've really soured big time on my home town (Dublin) since I returned here some years back. There's no shortage of options in Costa del Concrete but the logistics of it all fills me with dread. And its a one way ticket.

markjbloggs

getoutadodge wrote: »

None that I see (markjbloggs). Incentivising oldies (and I include myself in that category) to move house ain't easy. It goes with age and inertia. I've moved dozens of times both domestically and internationally over the years but have only one last move left in me. I wouldn't even consider it all except I've really soured big time on my home town (Dublin) since I returned here some years back. There's no shortage of options in Costa del Concrete but the logistics of it all fills me with dread. And its a one way ticket.

Have you considered postponing the sale in anticipation of incentives - it could go some way towards helping with the inertia?

Also I was thinking of a temporary stint in the sun, not a permanent move. Have already sourced storage at €180 per month for household goods. Plan would then be to come back in springtime 2022, a re-energised cash-buyer.

Also, I have had a similar falling out with Dublin - plus, it will find it difficult to recover from this lockdown

A fellow Oldie

getoutadodge

Yes (markjBloggs) the hedging my bets option has its benefits. It's easy to lock up and leave where I am currently based and snow bird packages are plentiful. I've already costed and preplanned them.

My original plan was (and still is) to become an honorary culchie (situated close to a GAA club to join and volunteer for) by moving down country first and then snowbirding every winter thereafter.

C3PO

atilladehun wrote: »

Banks give bridging loans for this reason. It's a system that had issues but generally worked.

Banks stopped giving bridging loans (except in exceptional circumstances) years ago!

JohnnyChimpo

markjbloggs wrote: »

Have you considered postponing the sale in anticipation of incentives - it could go some way towards helping with the inertia?

Thus we see the problem with government even floating any kind of incentivising initiative, you get this kind of anticipatory behaviour where people hold out for a sensed incoming policy shift, further logjamming the market. Ah well, human nature

busylady

As far as I know banks have not provided bridging loans for many years now, so it is not an option.

funk-you

getoutadodge wrote: »

3. 4 Months for both solicitors to finalise conveyancing process

4 months for conveyancing? I bought my last house in 7 weeks offer to keys 5 years ago. In the process of moving now again in a chain and looking at 3-4 weeks max for conveyancing (Vendors have somewhere to go).

Is anyone else seeing months for conveyancing?

-Funk

Sweet.Science

SMdPP87 wrote: »

Hi. Did you proceed in the end? I may find myself in a similar position and would appreciate to hear you experience, thanks.

I sold and bought in Dublin this year if you're looking for advice

SMdPP87

Sweet.Science wrote: »

I sold and bought in Dublin this year if you're looking for advice

Thanks! Could you share at a high level what order of events the process took? Also, for us we would be looking to sell and buy within of fixed term so therefore would need to ‘transfer’ our mortgage to new property.

Sweet.Science

SMdPP87 wrote: »

Thanks! Could you share at a high level what order of events the process took? Also, for us we would be looking to sell and buy within of fixed term so therefore would need to ‘transfer’ our mortgage to new property.

You can't transfer a mortgage .
You close the current one . Keep whatever profit you make and get a new mortgage on the new property

I sold my house after 3 years . It was a starter home and had always planned to sell within 3-5 years