Should I buy or sell first?
For many, buying and selling a home is a ‘Catch-22’; most homeowners have to sell in order to have the money to buy their next home, but many don’t want to sell until they find the home they want to buy.
The ideal scenario when selling your home, is to find a property to buy, and aim for settlement on the same day!
Whether you’re thinking of upgrading, downsizing, or simply relocating, here are some points to consider:
Market conditions
Some home owners make their decisions on what they think the market is doing.
If it’s a rising market, they buy first and lock in a price and then wait and hope prices rise before selling their existing property. But there’s always the risk that house prices don’t rise.
In a falling market, homeowners may choose to sell their existing house first, and then wait buy when property is potentially lower. However, in this scenario there’s always the risk of not being able to find the right property, and also not being able to get back on the ladder if prices suddenly rise.
Selling your home first
Homeowners who have just sold their property will be taken seriously by selling agents and vendors when putting an offer in, and maybe considered more favourably as a ‘financially ready’ purchaser.
Other advantages of selling your home before buying include:
- You know your budget
- You’re not under pressure for a quick sale so may get a better price
- It can give you breathing space when looking for a new property
Disadvantages of selling your home before buying include:
- You may need budget for temporary accommodation or storage costs if your house sells before you find another property.
- You’re under pressure to purchase a property and may be rushed into buying a property not right for you, and/or not have time to negotiate a better price on that property.
Buying a home first
Advantages of buying a property first:
- In a rising market, you can lock in a purchase at today’s price, and then sell your house when properties are expected to be higher.
- You have time to find a new home right for you without the pressure of selling your current property.
Disadvantages of buying a property first:
- You need to sell your home quickly so that you can fund your new purchase.
- You might need to take out a bridging loan, which can be expensive.
Buying and selling at the same time
If you’ve had that unexpected job offer you can’t refuse and need to relocate, or seen a dream property by chance, critical to buying and selling at the same time is you need to be ready to act fast.
You need to be looking at properties, but getting your home on the market and finding the right buyer does take time.
Key to getting it right is in the planning:
- Get appraisals for your existing home.
- Contact your bank, financial provider or mortgage broker so you know your budget and have any financial approvals in place.
- Have a contract for sale and a real estate marketing plan ready to go.
- Try to negotiate the longest settlement period for your new property.
Ultimately, if you are looking to sell, get good advice, be realistic, consider the different outcomes and know what risks you’re prepared to take.
You never know what is around the corner, so if you are thinking of selling your property in the future, get in touch with us now for a free, independent and non-obligatory quote.
If you do choose us to sell your home, we’ll guide you through the process and explain what you need to consider, and also suggest ways in which you can add value to your property.
We’re constantly achieving great results and our aim is to make your sale as stress-free as possible, particularly if you have to sell quickly.
Call in and see us in the Cardiff office, give us a call on 02 4954 8833 or send us an email to: mail@apnewcastle.com.au.
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