You know you want to move, but what should you do first? Should you sell your current home first or buy the dream home and sell the old one later?
When it comes to buying and selling each situation is different and there is no such thing as one rule fits all. Some people prefer to sell first so they know how much they can afford, while others may have seen the dream property and don’t want to run the risk of losing the sale to another buyer.
Each situation is different, so here are some things to consider when deciding on whether to buy or sell first.
It may be possible to sell your home with a long completion date allowing you time to find another property.
If you have seen your dream property, it may be possible to put on offer on a property subject to your house sale. However most Vendors will not take their property off the market for you to sell yours unless you make them such a good offer they can’t refuse it.
Bridging the Gap
Bridging loans may be an option, however, make sure you do your homework and understand the risks of taking out a bridging loan. The longer it takes your house to sell, the longer you’ll be paying two loans.
What’s the Market Like?
The state of the market may also influence your decision. Some sellers have been caught out in a rising market (ie when property prices are rapidly increasing); they’ve sold their house, but found themselves unable to afford something else in the area they want to live in. In popular suburbs, it can take several months to find a suitable property, so if you’ve sold your house, you may end up having to find alternative accommodation in the interim period.
How Saleable is Your Property?
Take a realistic look at your property and see how long it takes for properties to sell in your area. If your property is in a high demand area, and is looking presentable the chances are it will sell relatively quickly for the price you’d like. If this is the case, you may be in a position to put an offer on that dream property relatively confident that you’ll sell your current home quickly.