When looking to change homes, one of the big questions is should you first SELL your current property, or BUY your next property first?
The answer to this question depends on your circumstances and the current property market. To help you make your decision, consider the following factors:
How easy will it be to sell your current home?
How quickly your home sells can vary for a number of reasons: – current market, type of home, amenities in the home, price, suburb and perhaps some outside influences like interest rate changes. A local and experienced Sales Consultant can answer most of the questions; show you recent comparable sales in your area and show you how long they took to sell, as well as give you a good idea of likely buyer demand for your home.
What is your current home worth?
Until you have an approximate value of your home, it will be difficult to establish what you can afford to spend on your next property. A Sales Consultant can show you a Comparative Market Analysis of what similar properties have recently sold for in your area, to help you get this approximate value.
What if you sell your property first?
If you choose to sell first, you will be in a far stronger position to purchase as soon as you see what you like. And if you have already done your homework and know the market that you are looking to buy in, you will be ready to confidently take the next step.
However, if there is a time difference between you settling on your home and finding the next one you want, you will need to arrange alternative accommodation in-between, and that means moving twice.
What if you haven’t sold and have found your dream home?
If you have found your dream home before you have sold your existing property, agreeing to purchase the new home obviously puts you under some pressure to sell. You want to avoid the position where you are under pressure to sell, and end-up having to drop your price for a quick sale.
To help alleviate some of the pressure, you can possibly negotiate the settlement date of the new property to be longer to give you more time to sell, and perhaps organise the final selling of your existing property and the purchasing of the new home on or around the same date so that you only have to move once.
If you find yourself in this position you should look at all your options and speak to the experts first. Speak to your Sales Consultant and finance professional to weigh up your options.
What if house prices are rising?
If you’re in a rising market, it could make sense to buy your new home first at its current market value, negotiate a longer settlement, and have your current property potentially rise in value at the same time – this way you could earn more from your existing property.
What if house prices are falling?
Falling house prices may work in your favour as well if you can attract an interested buyer before prices dip lower, leaving you free to purchase your new home at the lower end of the market. However, falling house prices is also an indication of a slower market, meaning it could take you longer to sell your existing home.
Your local real estate professional is equipped to help you make informed decisions. Speak to one of our sales professionals today on 4628 7444.