Trying to buy, but held back by waiting to sell?

A reader's parents are planning to move home and have found a bungalow they like. However, they are having trouble selling their own property.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem.

Fiona from Cheltenham asks:

My parents own their house out-right and have no mortgage. They are planning to sell their house and buy a bungalow near where I live.

Their house has just gone on the market, we had couple of viewing but no offer has been made.

However, my parents have found a property they would like to buy, and they are not sure whether they can make an offer on it without selling their own house first; i.e. can they make an offer without having the funds first?

Should they wait until they sell the house before looking for place to buy? Or is it normal for buyers to put offers on houses before their own house is sold?

Tony replies:

It is quite normal to agree to purchase a property before having a sale in place.

It is not until contracts are signed that both parties are committed to the transaction and as such either party can withdraw from the deal at any time, without liability before this stage.

However, it does become a question of scruples as the purchase is very much a 'gentleman's agreement' until contracts are signed.

This means that should your parents not find a buyer quick enough for their home then the vendor might sell to another party. If there are several interested parties in the house they want to buy it is common for the vendor to sell to the party that is in the strongest position to complete the transaction.

The best I can advise is for your parents to explain their position when making their offer and discussing the purchase with the vendor.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.