Buying a new build with long lead time - when did you list your own house?

[penpotted]

I've reserved a new build house which is due for completion May/June 2021.

What I can't work out is how to time the sale of my own place. Too early and I would have to move into rented - but wouldn't be able to sign a six month contract as the build date isn't definite and not sure how landlords like short term rentals? Too late and I risk not finding a buyer and completing before the new build is ready...

How have others dealt with this?

I would sell now in case the market crashes if I were you.

When we put our house on the market as we were relocating, we couldn't move until a specific date (5 months down the line), which we made clear to interested parties. It sold quickly and the buyer accepted the date as we were upfront from the start.

I would market it now and just be upfront about your expected completion date. We're entering the winter in a period of great uncertainty. I think there is evidence of a slowing of the market in parts of the country with many reductions on Rightmove. Your best chance of getting a decent price is to market it as soon as possible at a realistic price. We sold last year and in fact it was our buyers who requested a delayed completion date - we were upfront with our vendors too and it worked for all of us. Admittedly it was 'only' five months from beginning to end. The process is slow at the moment due to Covid anyway, delays in searches, mortgages etc. so I would definitely be testing the market now.

Thing is the stamp duty holiday ends at the end of March 2021, so depending on the value of your house, you’re asking buyers to have to wait longer and pay the government up to £15k more to buy your house over others being marketed now.....I might consider that if your house ticked all my boxes, the price reflected the SD and you exchanged early to guarantee the sale.

Although then again if your buyers need a mortgage, that might have implications for a long wait as well.

I would definitely sell now and then move into rented. Look for holiday lets who might give you a good deal for 4 months or so. Especially because of the stamp duty holiday.

Hi OP, you've got a number of scenarios and need to decide which you can live with..........

1. You bet on finding a very flexible buyer who will wait for your new-build completion and not mind the timing uncertainty. Ideal but they may squeeze you on price for the flexibility.
2. You end up having to move into rented for 6+ months (ie the tenancy is 6+ months whether or not you are there the whole time) so that may be wasted money in some ways but means you know that you have the sale proceeds ready and waiting.
3. You don't get a buyer in time and therefore you either have to take out expensive bridging finance or you default on your new-build and potentially lose your deposit.

Personally I'd like No. 1 but would convert it into No. 2 for peace of mind.

If you have reserved rather than exchanged then at least you have time to ask the developer what they will want from you (and what you can negotiate). I doubt your solicitor will been on you exchanging on the purchase without also exchanging on the sale unless you can fund the purchase regardless.

Bew sitrs around us wouldn't even let you reserve without commiting to conclude missives within 6 weeks of reserving. With the funds drawn on the moving date which was always at least 6 months away. It was impossible and we decided no bee build was worth all that upheaval. You basically has to have a solid offer on the table before reserving, at the very least.

I’d say sell now in case things stop like they did in April/May.

The new build we wanted to buy wouldn’t let us reserve if we hadn’t sold.. buy we were interested in one completing this year..

If the new build is your dream, I think you’ll have to consider rental. You’ll be dropped like hot coals by the developer if they realise you aren’t proceedable nearer the time. I’d suggest talking to the developer for their advice, I imagine they’ll have a deadline for you selling your house (as in STC). If you don’t meet it, they’ll re-market. My friend had reserved a new build & also had to have sold her house in order to reserve (she was Redrow. I was Barratts) but lost her buyers over lockdown. Redrow washed their hands of her & put the plot back up for sale. When she found a new buyer, that plot had gone but thankfully there were a few others suitable left to buy..

Also bear in mind, it’s likely to deleyed. I don’t know a single new build that hasn’t been. Another friend was due in last week. Now 01 December. Our current house, the sale was delayed by 2 months because of a new build at the top of the chain. I lived next to a new build site when I was younger. Every single house was late by a month at least 🙈 it’s astonishing!