My todays topic in real estate is Selling or Buying. which might occur first and what is the best approach when you are researching…
Selling your old home and buying a new is one of the crucial decision you have to make and moving is very hard until its done. The thoughts, doubts, adjustments, amendments, confusions moving to the new place and start a new beginning is always challenging.
We all have our best priorities in life and the best thing is to find your own reason and moving forward. It differs from one person to another as well as the situation you are into. Some might be single, married couples, married couples with kids or elderly couples.
- You might be a first home buyers willing to getting into the market or
- You could be an investors building your portfolio.
- Or may be you are newly married couples looking for a place close proximity to everything. or
- You could be upgrading because your kids are growing and they need a better schools or
- You could be parents looking to buy property for your Kids close to home.
- You could be downsizing if you are elderly couples looking for a small place with low maintinence.
Everyday, we talk to many people while prospecting and door knocking. wheather they would like to move, sell, relocate, buy, invest or just researching. As we get to know different situation they are into and we are here to provide them with best advise as we can following their needs and wants in terms of real estate.
The situation differs from one another and the processes require a major commitment of your time, emotions and money! Most people choose to sell their old home first and then with the available equity purchase a new home. But there are times where buying first may better suit your circumstances. There is no exact rule of thumb when researching real estate. you have to analyse the situation and make a decision.
Commonly, people sell their existing home first. This helps to free up their equity and establishes a realistic budget when it comes to finding a new house. Ideally you will be selling of your old home and purchase of your new house as closely together as possible. This will help avoid the expense and trouble of having to organise interim accommodation and moving house twice.
There are a number of scenario:
- You will need to manage both the selling and buying real estate processes at once.
- It may take much longer than you anticipated to find and settle on your new dream home.
- Real estate values may rise after selling, pricing you out of your desired market.
If there is longer period between your real estate sale and purchase there are a number of options you can look at:
- negotiate a longer settlement period on the sale of your home
- organise to lease back your sold home from the new owner to give you more time to find a property
- move into a rental property
- Moving into a hotel with your family could be an option.
These options will generally save you money in comparison to buying before selling and incurring the costs of two homes and two mortgages.
You may come to the situation- when your dream home may come on the market before you sell your property can be financially tricky but you cannot control the situation sometime. So, in these situation the best approach you can do is go for a bridging loan. Bridging finance can cost more than a standard home loan. Additionally, buying first can mean extra pressure to sell your existing property, leaving you with less control over the sale process.
There are some steps you can take to reduce the burden of two properties:
- Make the sale of your existing home prior purchasing of your new home.
- Negotiate a longer settlement on the purchase of your new property, giving you more time to sell.
- Rent out your old home until it is sold but tenancy can make the sale process more complicated.
- Rent out your new home while working on the sale of your existing home, but this requires timing the end of the tenancy with the sale of your existing home.
Dont confuse yourself, if you are confused you are confusing everyone around you. Put yourself in the situation and act accordingly. There are pros and cons of everything you do.
Make your decision wise 🙏