Every homeowner is likely to move house at some point in their lives. As life changes, People and circumstances change.
Whether upsizing or downsizing, one of the most frequent thoughts you would have in your mind is, “do I sell or buy first?”
What are the upsides of Selling First?
The biggest bonus in selling your home before buying your next property is financial stability. You know exactly how much money you will have to work with in terms of buying your next home, and can build that into your budget. Along with any changes, that “dream” home might take some tweaks that turns a house into home.
Additionally, the pressure to sell before you settle on your new home is no longer a weight that is now sitting on your shoulders. This means you can sell when the time is right for you and achieve the best price for your property.
The downside to selling your home first is that you may be forced to pay someone else’s mortgage by renting until you find your next home. This also adds to additional costs such as Cleaning, Removalists and connection of utilities. None of that money spent on those additional costs is going towards your own home.
Another way to get around this would be to negotiate a long settlement into your contract, between 12 or even 16 weeks if you can.
What are the advantages of Buying First?
This is undoubtedly the “easiest” option when selling and buying a home, should you have the financial means to do so. Wouldn’t it be nice?
However, it’s not all rainbows and sunshine. There still are significant pitfalls to buying before you’ve sold.
Firstly, not everyone has the financial clout to support two mortgages at the same time. Buying and selling should have an element of fun to it and when you find yourself overwhelmed with too many bills and not enough funds, the fun dwindles away.
Additionally, placing yourself under pressure to sell as quickly as possible means you may not get the price you initially anticipated for your home, leaving a gaping hole in your budget.
Why are Market Conditions so Important?
One of the most important considerations when buying and selling houses is the current market conditions. Do your research and speak to your agent or local agents in the area. These are the people that live and breathe Real Estate, pricing, market movements and what buyers and sellers want respectively. An insight and third-party conversation would never hurt or hinder you.
In a rising market, buying first could be a better option because you may get a better return on selling your home. In a falling market, selling first is advisable so you can get the best price on both properties.
When is it time to Make the Big Decision?
In order to navigate the complicated set of scenarios when selling and buying a house, the best thing to so is plan ahead. The worst thing you can do is go off-plan, Investigate the market conditions, develop a timeline for the sale and avoid the most common pitfalls when selling your home.
Unless someone has expressed outside interest in buying your property, it is generally easier to find a home to buy than to find a buyer for your home at your desired price. For that reason, as well as the increased financial security, selling first makes more sense.
If you’re planning of buying and selling property, get in touch with Clark Real Estate today! Our expert agents will assist you in making the right decision for your circumstances and ensure the process is as smooth as possible.