If you’re looking to upgrade your home, the big question you are facing is whether you should buy first and then sell or the other way around. We work with many people looking to upgrade, but who are unsure about which order they should be doing it in.
There are a few questions to ask yourself and consider when making this decision:
Are you relying on the funds from the sale of the house to purchase your new home?
If so, you’re not alone. Lots of people rely on the equity they’ve amassed on their current property in order to cover the deposit on their next property. If your finances indicate that you need these funds there are a couple of options available to you.
The first is to list and sell prior to your next purchase, then to make an offer on the next property once you have the funds. This could mean renting somewhere else, renting your current property (if the new owners are agreeable), staying with family or negotiating a longer settlement to allow you time to find your next home.
The other option is to list the property, get your pre-approval in place subject to the sale of the property and commence looking for your next home with the expectation that you’ll sell your current home before settling on the new one.
Do you have time pressures that require you to buy first and sell after?
For some, this could be a move interstate or overseas for a new job. In which case you don’t always have the luxury of waiting for your existing property to sell before you need to move.
Buying before you sell can be a little risky, as it means for a period of time you may have to pay for two mortgages or find the lender won’t approve your loan without the funds from the sale of your other property. This option can also, in some cases, trigger a ‘bottom line’ price that you need to achieve. We can help you determine whether it’s achievable and plan ahead with you to ensure that the sales strategy fits your financial needs.
Can you do both at the same time?
If you’ve been fortunate enough to successfully make an offer on a new property and had a buyer sign a contract for your existing, then you are in the enviable position of being able to get the best of both worlds.
Lots of people choose to time their settlement day so that the sale of the older coincides within days of the purchase of the new. If you’ve used the same Conveyancer or Solicitor for your sale and purchase it should be fairly straightforward for them to negotiate and time these settlements to your advantage.
Find your entourage
Coordinating any of these options can be a headache and it’s helpful to have someone assist with the juggling act. Having a team on your side is so important when buying and selling around the same time. Not only does it take up a lot of time hosting open for inspections, but you’re also attending them, required to know your financial position inside and out, not to mention the legal and administration aspects that require your attention.
As you can see in the information outlined above having your Finance, Conveyancing and Vendor Advocacy team all working together means a smooth and easy transaction for you!