The secret to buying and selling a home simultaneously
When considering buying and selling a home simultaneously, it’s important to have a well-thought-out strategy to ensure a smooth process and avoid financial loss. Most people aim to sell their current home for the highest possible price, buy a new home at the lowest possible cost, and minimise the hassle involved in the process. But the question remains: should you sell first or buy first?
First off, get your home ready for sale
The first step in this process is to prepare your current home for sale. Simple DIY projects like a fresh coat of paint and completing odd jobs can help increase the value of your home. Additionally, paying off more of your mortgage before selling can also result in a higher profit.
Get ready to decide
When deciding whether to sell or buy first, it’s best to aim for the settlement on your new property to occur a few days before the settlement on your current home. This will give you more time to move and minimise the stress involved. However, unforeseen circumstances can arise, and the decision of which to do first will depend on various factors such as the current market, your ability to afford a bridging loan, and your equity.
What happens when you sell first?
Selling your current home first has the advantage of knowing exactly how much money you have to spend on your new home. However, you may need to rent temporarily while looking for a new property, which can result in additional costs and time spent packing and unpacking. Selling first also runs the risk of a gap between sale and purchase, during which property prices may rise.
What happens when you buy first?
Buying your new home first can remove the need for temporary rental and prevent missing out on your dream home if you find it before selling. However, overestimating the selling price of your current home or underestimating the time it takes to sell can be costly. Additionally, having bridging finance can result in paying off two loans until the existing home sells.
Before making a decision, it’s essential to understand the potential costs and time involved with each option. Careful planning and consideration can ensure a smooth process and minimise financial loss when buying and selling a home simultaneously.
If you have any questions about how this situation might affect your decision to buy or sell a property, make sure you get in touch with our team so we can give you the best advice possible.