Do you want to relocate to a new home but are undecided about whether to sell your current one first or buy a new one before selling?
Moving house can be one of the most stressful occasions in a person's life due to the life changing decisions which need to be made. Unfortunately, there is no one-size-fits-all solution that can be applied to everyone, but taking a deeper look at the benefits and drawbacks might help you make the best decision. In this article, we will go through some of the pros and cons of selling before buying.
So, what are the Pros and Cons of Selling First before Buying?
1. Selling your property first reduces your financial risk because you'll know exactly what you're working with in terms of budget and how much money you have to spend on your next home.
2. You won’t need to worry about having to pay two mortgages or paying for a bridging loan to finance two properties at the same time.
3. You will have funds available for the purchase of your future property after your current property has been sold.
4. You will be able to put forward a more convincing and appealing offer for your next home without having to include a condition of the sale of your property.
5. As the owner, holding the cards, you may be able to arrange a long settlement giving your more time to secure your new home or temporary rental property without the stress
6. You may be able to sell in a ‘hot’ market to make a good profit and wait until the markets slows down and prices decrease to purchase your next home
1. You and your family may need to locate temporary housing until you are able to purchase a new place if your settlement date isn’t extended.
2. You may need to move twice if the moving dates don’t perfectly align
3. There’s always a risk that in the time you sell and the time you find your new house, that property values will rise. If this happens, you may well spend more on your new home.
Make sure you examine all of the benefits and drawbacks of each option before deciding whether to purchase or sell first. Ultimately, the decision to buy or sell first comes down to your personal and financial position.