Many people want to know whether to buy or sell first. It’s not an easy question to answer as there are many things to consider. So, let’s have a quick look at the options:
Buy first – then sell. This is a good option if you have all your ducks in a row and are well prepared. It is important to be organised and know with certainty what you will likely be able to sell your property for and in what timeframe. Finally, what will happen if it doesn’t quite work out – i.e. do you have a plan B?
Sell first – then buy. The risk with this is that in a rising market with limited properties available, you might not be able to find the right property soon after selling. This could have a huge impact on your financial position and create stress:
- You might end up moving twice
- If you buy a year after selling, you will have to pay a higher price for the property and would have sold in a market where property prices were less, moving you backwards from a purely financial perspective
- You might end up buying something that is not quite right for you “just to get back into the market”.
- Or you might be lucky and find the perfect place shortly after selling ☺
As we are moving into a different market, there will be more opportunities coming up where you can buy a property subject to yours selling. This is the ideal situation for homeowners looking to move. We are seeing an increase in contracts “subject to a house sale”, but it will take another 12 months or more before this will generally be acceptable to sellers. There are simply too many buyers with cash in their pockets who are looking to purchase now.
There’s no perfect solution that suits everyone but we
can help. By predicting what is likely going to happen we can find out what the best solution is for you based on your personal situation and depending on the level of risk you are comfortable with.
Give me a call if you’d like to find out what might work best for you.