February 7, 2020

Sell then Buy vs Buy then Sell

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Growing family’s, empty nesters and lifestyle changes are all reasons people need to change the home they live in. Whether you’re upsizing or downsizing this process can be tricky. 

How do we avoid moving twice, bridging finance, and risking owning two homes at once and still achieve a great result?

We have put together a few strategies to help you find a way through this problem that can be a stumbling block for many of our clients.

Sell First Then Buy: This option offers people the most security as they know exactly how much they have sold their house for and can now buy with confidence and within budget. The problem is you have nowhere to live in the meantime!

Solutions to this could be:

  • Tweak the terms: Put your home on the market and ask the buyer for a longer settlement period. During the negotiations try and stretch out the settlement period so that you have time to buy the next house.
  • Live with Family (YIKES): An option for some is to sell your home and then couch-surf with friends or family. The downside is you have to move twice but you can take your time to buy and bond with family at the same time!!
  • Rent your home back from the buyer: You may find that your buyer might not be ready to move in straight away. Many times we have negotiated deals where the seller rents their own home back from the buyer for a few months to give them time to buy.
  • Just suck it up and move twice: This is the slowly but surely method which involves the most work but you can buy with patience. Not a good option if the market is rising.

Buy First Then Sell: To work out if you can do this the first step is to get an accurate market appraisal of the likely selling value. Armed with number, go to the bank and have the conversation about what is possible.

The key here is that you will only have to move house once.

Ways to make this work include:

  • Have a serious conversation with the agent about how long a sale will take and how much it will sell for. The accuracy of this assessment is very important.
  • For the purchase, see if you can ask for a little more time to settle the deal to give yourself more time to sell.
  • Ensure everything possible has been done to the home you’re selling to ensure a smooth sale.

We specialise in offering advice to home owners who are looking to make the jump from one home to the next. It involves an accurate market appraisal and realistic advice on what needs to be done to your place before you sell to maximise your result.

If you have one eye on the next place, contact Stuart to start planning today.

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