Making an Offer on a Home Before Selling Yours: What You Need to Know
You've found your dream home—but there's one catch: your current property isn’t sold yet. It’s a common situation for home buyers, and deciding how to proceed requires careful consideration. Should you make an offer before selling, or should you focus on getting your property on the market first? Here’s all you need to know to make the a decision.
Understanding Non-Proceedable Offers
When you make an offer on a property without having a buyer lined up for your current home, your offer is considered non-proceedable. This means that while the seller can accept your offer in principle, the sale can’t move forward until your property is sold.
While some sellers are willing to take non-proceedable offers into consideration, they often come with risks, and you may find yourself in a weaker position when competing against other buyers who are further along in the process.
The Risks of Making a Non-Proceedable Offer
Before you go ahead and submit an offer without selling your home, consider the potential drawbacks:
- Lower Negotiating Power – Sellers are more likely to favour buyers who have sold their home or have no chain. If another buyer comes along who is proceedable, you could lose out.
- Risk of Losing Your Ideal Home – The seller may accept your offer but continue marketing the property. If another buyer appears who is in a stronger position, they could take priority.
- Increased Pressure – If your offer is accepted, you may feel pressured to sell your home quickly, potentially leading to a lower sale price or rushed decisions.
- Potential Time Wasted – If the seller is not willing to wait for you to sell, you could spend time making an offer and negotiating only to find that the home goes to someone else.
The Advantages of Listing Your Home First
Instead of making an offer before selling, consider getting your property listed first. Here’s why this approach is often the best move:
- You’ll Be a Stronger Buyer – If your home is under offer or even better, already sold subject to contract, you’ll be in a much stronger position when negotiating on a new property.
- Smoother, Faster Process – Having your property sale agreed means less uncertainty for the seller of the home you want to buy, reducing delays and giving them more confidence in accepting your offer.
- Better Negotiation Position – Sellers may be more inclined to accept your offer if they know you’re a proceedable buyer, meaning you might secure a better price.
- More Certainty for You – By selling your home first, you’ll have clarity on your budget, allowing you to make informed decisions when making an offer on your next property.
When Should You List Your Home?
If you're serious about moving, the best time to list your property is when you are fully motivated and committed to selling. This means:
- You have a clear idea of where you want to move.
- You’re prepared to accept a realistic market price for your home.
- You’re ready to facilitate viewings and respond to offers.
- You’ve considered all aspects of the move, including finances and timings.
Key takeaway: If you’re committed to moving, listing your home early will put you in the best position when the right property comes along.
Final Thoughts
While it’s understandable to want to secure your next home before selling, a non-proceedable offer puts you at a disadvantage. If you’re serious about moving, the best step you can take is to get your current home on the market as soon as you’re fully committed. By doing so, you’ll have greater control over the process and a much better chance of securing your next property on favourable terms.
If you're considering making a move and would like advice on how to maximise your home's sale potential, we’re here to help. Get in touch today to start the process.