It’s the great real estate question – should I buy before I sell? The answer – probably!
If you’re somebody who’ll get cold sweats at night because you’ve doubled your debt with a bridging loan to buy a new home before selling the current one, then don’t do it.
Peace of mind has a real value.
The other side of the equation – selling before you buy – also carries risk, albeit smaller. What might you do in a tight rental market if you haven’t found a new property when contracts close on your current home?
There is much we can do here. It’s possible to make finding your next home part of the conditions of sale, and we look to negotiate the closing period to gain additional time to help find your next home.
As an experienced real estate agent I’ve seen every scenario you can imagine.
Unless you love a risk or have found the dream home that you absolutely must have, my advice is that selling first is the safest strategy.
You are in a stronger position to achieve the best price for your existing home when you’re not under financial pressure from bridging loan payments. With the money in the bank, you can take more time to find and negotiate over the price of your next home.
If you must buy first, it’s safest to do in a strong market when you can expect immediate interest from buyers in your current property. Many owners have taken this path in good market conditions and sold with little inconvenience.
In summary
- As your local agent, I believe it’s safer to sell first, buy second.
- By selling first, you remain in a strong position to maximise the value of your existing home.
- Bridging loans can be used to finance a new home while the old remains for sale. But they can be expensive and are best avoided.
- We can look to including your need to purchase or sell your home part of your contract.
- In a strong market, the risk of being caught out is less because homes tend to sell quickly but avoid relying on this as markets can change quickly.
- In a weak market, you’re asking for trouble. It might take months before your home is sold.
- You can seek additional time to sell your home by negotiating a longer closing period.