When looking to change homes, one of the big questions is should you buy your next property first, or sell your current 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?
The average sale time varies from city to city and from month to month. Your sales consultant can advise you about current market conditions, recent comparable sales in your area, and the possible demand for your home to help you answer this question.
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. Your 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 AND DON’T FIND A NEW HOME?
If you choose to sell first, you will instantly 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 that next step.
WHAT IF YOU HAVEN’T SOLD AND HAVE FOUND YOUR DREAM HOME?
The best way to avoid the pressure of confirming the contract on the home you want to purchase, and taking the risk your own home will sell in time is to talk to the experts first. Speak to both 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.
