You’ve made up your mind to sell your home, and purchase another, but you’re not sure whether it’s best to sell first or to buy first. Or perhaps you’ve found your dream home and don’t want to miss out on the opportunity to own it, but your current home is not yet on the market. Should you take the plunge?
While there are no easy answers, there are some strategies to consider that can help make the transition smoother and to minimise your stress, during what is always a time of elevated emotion. Having been personally involved in literally thousands of property transactions, it has become clear that looking and/or waiting for your perfect property generally takes more time than selling one.
So depending on the specific circumstances, my advice is usually to buy your perfect property first, and then sell.
For peace-of-mind, it’s best to first talk to an expert local agent, such as any Acru sales consultant, who will provide you with realistic expectations for your current property in terms of both sale price and estimated time on market.
This will help you establish a budget and ideal settlement periods for your current and new property. In setting your budget, remember to take into account any relevant expenses, including agent selling fees, marketing costs, legal expenses, stamp duty and the like.
Buying first, rather than selling first, prevents the compulsion to rush in to another home that isn’t ‘quite right’. It also negates the necessity to find accommodation for you and your family, and storage for chattels, between the settlement of your current home, and the purchase (and settlement) of your next.
Timing is key
Key factors to successfully implementing this approach include negotiating a lengthy settlement time on your new property, while acting quickly to put your current home on the market – with the shortest possible settlement time – once you’ve purchased. To avoid two moves and the necessity to arrange accommodation or storage, it’s best to aim for a simultaneous settlement, so you can move out of your current home and into your next on the same day.
A good agent, with an extensive buyer database, local knowledge and access to a strong, multi-office network, can help you sell your property quickly, negotiate a fast settlement and maximise your sale price.
Before acting, you should also talk to your finance provider about potential bridging finance, in the event that your current property does not sell and settle before you finalise your new home purchase. If you have significant equity in your property, you might be able to extend your current mortgage to pay for your new home.
As speed and careful planning are important to a successful changeover of this kind, also consider spending some time working on the presentation of your current property right away, including decluttering and any painting or repairs. It’s important to be ‘ready to go’ once you secure your new home. You ight even decide to appoint an agent, so they can prepare your photos and marketing campaign in advance, along with a solicitor to start arranging the paperwork (such are your Vendor Statement) so all in readiness with it’s time to sell.
This is an exciting time, so stay positive, and remember that the more prepared and organised you are, the better you will feel.
If you have any questions about the current local market, or need advice centred specifically on your individual circumstances contact the experts at your local Acru office.
This information is designed to provide general information only. Always seek professional advice specific to your individual circumstances before arranging finance or making any property transactions.