I’ve not slept much these last few nights – my brain has been in overdrive thinking about the apartment we viewed on Saturday. We had come to a decision: that we would like to make an offer!
But we had not considered the possibility of moving this soon. Our house is not yet ready for sale. So the sensible option of selling first, then renting followed by buying with the cash is out of the window. We will need to improvise 😉
I see only two possible options:
Option 1: We put our current house on the market immediately, and hope it sells quickly. The nice bit about this option is that we wouldn’t have to borrow any money. But there are several negatives I can think of – such as potentially having to accept less for our house than we would have otherwise liked (i.e. sub-optimal time of year to sell, not had time to decorate/stage it for sale etc). There is also the delicate issue of me having to transition to full work-from-home status – something my employer hasn’t yet formally agreed. Then there’s just the hassle factor of moving – we would much rather have some overlap to provide flexibility.
Option 2: We borrow the money and temporarily become second home owners. This makes us more attractive as a buyer (i.e. no chain) and gives us lots of flexibility when it comes to selling our existing house and the move itself. The negatives are of course the increased cost, including mortgage payments/interest, a big increase in stamp duty (which we can ultimately claim back) and a certain amount of double billing (e.g. council tax, utilities).
I have decided to try and proceed using Option 2 and have spent several hours crunching numbers and playing with mortgage calculators as a result.
So without delay, I was on the phone to the estate agent the moment they opened this morning. But they were not actually open, so I left a message. I followed up several times but always got voicemail. So I sent an email asking for our particular contact to call me back. Which they finally did, at around 10:50.
The property was listed at £250K and we had been humming and harring about whether to start with an offer of £220K or £230K. I offered the lower amount.
Just over half an hour later, the estate agent called back and said that the vendor had rejected our offer. Disappointment. But they went on to say that they would accept £225K, and did we want time to think about it? Hell no! I offered £225K on the spot and then hung up to tell Mrs FmC the good news. 5 minutes later the estate agent called back to confirm – our revised offer had been accepted. Hoorah! 🙂
I couldn’t believe this was all happening in such a short space of time! But it wasn’t long before I came back down to earth. Oh shit – I had better start work on getting a solicitor (and more importantly a mortgage) lined up!