Would you sell in these circumstances

[Indecisive29]

I need some opinions just based on facts please. I’ll try and get all the details down so as to give you the full scenario.

We bought our first home a few years ago. We’ve had a baby and would now ideally rather be in a different type of property although we have more than enough space here so moving is not essential. We’d rather be in a neighbouring town which would allow me to walk baby to nursery, go to the same nursery as friends children, be in the same town as family and I can walk to work 👏🏼

Property was bought for £120k which was home report value at the time (we’re in Scotland - not sure if it makes any difference). We have another 10k saved to go towards our next purchase so that should cover all fees etc. We have an agreement in principle for £220k mortgage based on our finances if we sold for the same as what we bought for. In our town there is a HUGE demand currently for property. Nothing has been on the market longer than a week for the last couple of months. We decided to get a valuation just to see how things stood in the current climate. Bar paint and a few new carpets we’ve spent absolutely nothing on the property. Estate agent said home report value would be around 160k but that currently everything in our little town was selling for 15-30% over 😳
I was pretty sure he was overvaluing and just trying to get us with the promise of big money so we had another 2 local companies come for valuations and both have said the same. All have also said that they have clients currently looking for property in our area. DH was ready to hand over our keys there and then.

My issue is - currently, there is SO little on the market where we want to be. We’re talking pretty small towns. In our current “very in demand town” there are 3 properties on the market. Where we want to be (much bigger town) there are 27 - of which NONE fit our requirements or even have the scope to make fit. Property in the town we want to move to is currently selling for 5-10% over asking and going just as quickly as where we are.

We can afford to sell up and rent. But what’s currently up for rent in the area we’d need to be in is either horrific or hugely expensive. If it were just DH and I we’d say “sod it”, get it on the market, hopefully make some decent cash out of it, rent somewhere as cheap as we can, get our stuff into storage and ride it out until our perfect house comes on the market BUT - we now have a DC to consider. Moving with a toddler into rented with most of our stuff in storage then moving again when we find somewhere is silly isn’t it? Are we being irresponsible to even consider it? 😬 what if we sell and there’s still nothing decent for sale or rental?

for houses, you need to think long term. if you make the move to NewArea, will that have you set up for the next 10 years? will it have the right primary schools? will you be able to get a house big enough for any future babies and for when the toddler becomes a teenage? or if you stay in CurrentArea, what are the schooling & commuting options like?

if you think you need to move before primary school, you might as well get started on the process now.

@parietal

for houses, you need to think long term. if you make the move to NewArea, will that have you set up for the next 10 years? will it have the right primary schools? will you be able to get a house big enough for any future babies and for when the toddler becomes a teenage? or if you stay in CurrentArea, what are the schooling & commuting options like?

if you think you need to move before primary school, you might as well get started on the process now.

@parietal New Area has preferred primary school. Although there is a good one in current area too. New area is in the guaranteed catchment for preferred secondary. Current area isn’t although we can apply and will be given a place there if there’s space. Our current property is a 4 double bed flat so we’ve been spoiled for space. Ideally we hope to have another child in the next few years. Stairs access + toddler + newborn + pram is a big factor pushing the sale. New Area we can afford along the lines of a 3 bed semi with drive and decent garden. We will definitely be selling to make the move at some point, be that now, later this year or in a couple of years - it’s just whether or not to jump while the market in this town is so “hot” and try to take advantage of that.

The idea of moving house to rented and then moving again to whatever we buy is throwing me. I can’t imagine it being the easiest to do with a toddler! 🙈

I personally wouldn't go into rented. Our sale fell through last summer. We are still in a small flat with very costly storage. Not a lot around to buy after the huge 'sell up' last summer due to stamp duty discounts.
I don't have young children.
I would register with all the agents and put something on FB wanted. Spring brings fresh instructions.

@SavBbunny

I personally wouldn't go into rented. Our sale fell through last summer. We are still in a small flat with very costly storage. Not a lot around to buy after the huge 'sell up' last summer due to stamp duty discounts. I don't have young children. I would register with all the agents and put something on FB wanted. Spring brings fresh instructions.

@SavBbunny Thats my concern 😬 we need a little job done I’m our property before it can be photographed etc but can’t get the contractor until next month so it’ll be end of Feb before we go to market 🤞🏼

We were in a similar position and wanted to sell because out house has given us some equity to enable us to go up the ladder. The advice I got was...

• be aware that if you are selling to buy another house then it's irrelevant if the market is up or down. If your house is currently up 20% (say 24k in your situation) then the more expensive house you are buying is also up 20% (maybe 40-50k based on 200-250k house). Similarly if you don't sell now and the value of your property falls, the value of the one you are buying falls too and if you are going up the ladder then you will be saving a bigger sum than you are losing.
• look for something that you can make I to the perfect house if the perfect house isn't available. We are buying a house that is cheaper than the house we are selling but has the space to put a big extension on. We are keeping £75k from our equity to do this.

We fortunately found the right house for us (not at all what we were initially looking for) but I would have been tempted to go into rented if we hadn't. It seems to make you more attractive as a buyer in a competitive market. I'd probably have had a really brutal cull on all our crap though so I wasn't moving it all twice.

It sounds like you've got good reasons for moving, and best to do it now i reckon. We moved twice last year, between our sale and purchase, we're in the rental for about 7 months. It was fine a bit of a faff but worth it as I love our house and area now and wouldn't have wanted to miss out.

Plus being in rented makes you chain free again do well placed to get the house you want when it comes up.

@Whitelight22’s point is good
Although that doesn’t take into account area trends and moving area.
If your current area has recently gone up, but New Area hasnt then might be a good time to sell? Might New Area also go up in future?

Thanks all 😊 @Whitelight22 Definitely points we had looked at but as @User2638483 said - the area change means it wouldn’t exactly work like that.
NewArea is more expensive to begin with So we’ll be moving into a more expensive property but maintaining the same number of bedrooms etc. But we’ll be moving from a flat to a house which will suit our family nether. NewArea is always on the up, it just tends to be much more steady. Very desirable seaside town with good schools and good transport links to nearest city etc. CurrentArea is having a lot of additions etc at the moment that are driving demand and prices, hence the bigger increases here.