Selling house experience

[kb16]

Hi,
Looking for some advice as I'm clueless! We bought our home in June 2018. It was a new build paid 200k, it's now 217k to buy brand new from TW.
We are looking to move to a bigger house as we are due another baby in a couple months and our 3rd bedroom is tiny. We don't have a deposit as such but hoping we can get a deposit from selling our house
Does anyone else have experience selling their house, did they save up the deposit or make money on their house?
I'm just nervous I put my house on the market and it sells and I don't really make any money then I have nowhere to live!
The house we are looking to buy is 240k and hoping to get a 95% mortgage so hoping the deposit will be 12k (plus whatever fees there are)
Looking for advice please :)

New builds are a bit like brand new cars - they can lose value, especially in the first few years. If new homes are still being built in the area then that can drive the value down too. Have any other lived in houses on the same development been sold recently?

Instead of incurring high moving costs after only owning your house for 2 years (which you may well do) can't your new baby share with its sibling for a few years?

And no you can't get a deposit from selling the house as you don't receive any money until completion of the sale. So if you don't have a cash deposit saved I'm afraid you're stuck staying where you are.

@sunshinesupermum absolute nonsense that you can't use a deposit from the sale and have to have it saved in cash. The buyer's deposit is passed up the chain.

OP, get the house valued by an estate agent and then have a look how much is left owing on your mortgage to see how much equity you have (obviously you need to factor moving costs including SDLT into this). Good luck!

If the deposit didn’t get passed up the chain very few people would ever move! It does require your solicitor negotiating with the other solicitor about the deposit only being 7% or whatever If you’re upsizing, but it’s absolutely normal practice.

If houses like yours are still being built in the area I would stay put a while. Personally if I were buying a new build I’d rather pay a little more and have a NEW new build than an identical one someone’s lived in for two years.

No need to be so rude MonetMoney

@sunshinesupermum no need to give incorrect advice to people on these boards, imagine how stressed OP would've felt reading your comment!

@kb16
It’s as @Monetmoney says.
We moved 2 years ago. Our deposit was funded entirely by people down the chain buying up to our old house. It is possible that you might need to part fund a higher deposit on exchanger as you are buying upwards so you need to fully understand your cost to move.
Speak to estate agents, financial advisor, moving company and prospective solicitors to fully understand costs. It ain’t cheap.
Finally as Monet says, new houses like new cars depreciate. Before wasting time and heartache on an impossible dream, get you house valued by several agents.

Good luck

I get where you are coming from OP. We bought in 2015 and ended up selling in 2019! It was only a year or so after the build finished completely and I would echo that any houses up for sale whilst others were still being built didn't shift. The best time would be after building has stopped and there is a demand in the area again. Our area is popular and so we 'made' about £25k in those 3.5 years. So don't believe everything people say about new builds don't hold their value etc etc. I do agree they are usually overpriced but in popular areas where there is demand, house prices are still increasing. Like you plan we used our capital within the house (we also paid off some extra mortgage) to use as a deposit for a second house purchase. We deliberated for ages, was it too soon etc but decided if we could afford it we'd rather move now and not be thinking about moving again with young children etc. Hope it all works out for you

Yes when we moved we used our house equity to fund all the fees and the deposit on the next house was passed up the chain. However we'd been there 10 years, and it wasn't a new build so with rising house prices and 10 years of mortgage payments we had nearly £100k equity. Unfortunately new builds tend to drop in price for the 1st few years. I think I read that with average market growth it takes 3-5 years for a new build to be worth the first sale price again.

Your best bet is to get an estate agent round to value the house. There is no commitment and if they value it at enough for you to buy your new one then you can put it on the market. You don't have to accept an offer which isn't enough for you to move on.

The best advice OP is to get three estate agents estimates for a realistic valuation but staying put for the time being sounds your best option.

A baby doesn't need a big room, they'll be in with you for 6 months anyway. It'll likely cost around £20k fees etc in your situation and a 95% mortgage in the current climate is nuts imo. Stay put and save towards the next house.