Even the most hardened of homeowners can lose sleep over this decision!
To buy or sell first is one of the many financial implications that you’ll consider when selling property. Whether to buy or sell first is a tough question because there are so many factors that can influence your decision in either direction, including your financial situation, the property market and your property itself. That said, there are pros and cons concerning each:
If you buy first
The upshot to buying first is that you’re in no rush to find a new home — a huge benefit to vendors selling their home in a seller’s market where properties will spend far less time on the market. Think carefully about the following, though:
- Bridging finance may be necessary, so you should always speak to your finance lender, as this will play a key role in whether you buy or sell first.
- If your home sells for less than you were expecting, you may end up needing to borrow more money than you first thought.
If you sell first
The biggest benefit here is that you can take your time to sell. There is no pressure to accept the first offer that comes along, which means you can hold out for the best offer. When you go to buy, it also means that you’ve got a firm budget to work off. But, again, there are some other things to consider:
- There may be some pressure, once you’ve already sold, to then find your new home and line up both the sale of your home and the purchase of your new one, so you can move out of one into the other.
- If you’re not able to find a place to buy in time, you may have to rent or stay with friends. This could mean storing some of your furniture and might involve moving twice. This is probably tricky for people with young children or a lot of belongings to sort through and store.
Consult your local real estate agent before you make a decision. They will be able to tell you whether your home will be hard or easy to sell, given the current market conditions and so forth.
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Our educational blogs are designed to help you understand each of the steps involved in selling your property so whether you choose to work with a real estate agent or do it yourself you'll understand the work involved and be more efficient and aware of what you need to do. Our articles have been seen in these major online news and information portals..
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