Brighter Buying

Should you buy or sell first?

by Kate Watt, Marketing Manager 3 October 2019

Picture this. You’ve decided it’s time for a change and you want to put your house on the market.

But where to move to? You start window-shopping on and something unexpected catches your eye. You go to the open house and fall in love.
You haven’t got your house on the market yet but you don’t want to miss out on your new dream home.
What should you do?
Firstly, take a deep breath, grab a coffee and a Kit Kat. You have quite a few things to think through.
If you buy before you sell the big risk is that you may need to juggle two loans or get a bridging loan.
If you buy first then sell in a rising market, you might come out OK, but if it’s a weak or falling market, you run the risk of being forced to accept a less-than-perfect sale price.
Selling first is usually the safest option financially. Logistically this means you will need to juggle some kind of interim accommodation until you can move into your new home.
While some people try to line up settlement dates for their home sale and purchase; there is still a risk involved in this approach as contracts could fall over, or buyers may ask for an extension.
The important thing is you think through these scenarios before you move from window-shopping to buying. Then you can have your own plan in place, based on what’s important for your lifestyle and financial situation.
Not sure what path to take for your next move? Contact us for a chat.