Choosing to buy or sell first is not always as simple as it seems. There can be a lot of variables depending on your situation – knowing your reasons for buying and selling will affect your timing.
As with all things real estate, do your homework. Are you staying in the same area or moving away? Are you upsizing or downsizing? Will you be taking on a smaller or bigger mortgage? What is the level of demand for your type of property in your area? Knowing the answer to these questions will help you decide one way or the other.
Belle Property NSW & ACT Business Development Manager and Auctioneer, Andrew Robinson says that engaging a proactive agent will provide the best possible outcome.
“The ideal would be to buy and sell in the same market timeframe which alleviates the risks involved,”
There are pros and cons. The benefit of buying before you sell is knowing that you will only be moving once and that you can spend time finding the right home. The pitfall is that you could be juggling two mortgages or find yourself in need of bridging finance. You also run the risk of not getting as much for your home as you anticipated.
Selling before you buy puts you in a position of knowing exactly where you stand financially, and you will not have to obtain bridging finance. In a rising market, you could achieve more on your current home giving you greater purchasing power. If there is a gap between when you sell and when you find your new home, you can rent or request that your contract be extended from the normal six weeks to 12 weeks. Having to move twice and requesting conditional offers can be less than optimal.