Wow you thought buying your first home gave you a workout, wait until you buy your secondhome! There’s twice as much to think about, this time round as you’re not just buying but also selling. To make matters alittle more interesting, matching those possession dates so that all parties involved moving schedule coincide can also add to the complicity.
You only have two options – buy first or sell first. Both scenarios have pros and cons.
Selling first has lots advantages. For starters, you’ll know exactly how much you’ll net after your sale is complete which will help determine the price range you reinvest into. Selling first will also enable you to make a much stronger offer as you won’t have to make it conditional upon selling your current home.
On the downside, you will only have a limited amount of time to find your next home unless you decide to rent. As a result, you may settle for something that’s less than perfect or paying a premium for a property that has everything you want but that’s over priced. You may also have to be flexible when it comes to moving dates.
If you’re buying a very specific property that only comes up once in a while, you may want to consider buying first and arranging a longer settlement so that you have lots of time to sell your home. Of course the pressure well be on so you’ll want to price your home at a price that will attract lots of buyer interst immediately. Arranging some additional finance can also give you a bit more flexibility for the settlement.
The market will help you determine whether buying or selling first is your best option. In a buyer’s market when there’s lots of selection, people generally prefer to sell first so that they have a bit of breathing space. In a seller’s market when homes are harder to find and go quickly once they become available, it’s preferable to buy first. One thing’s for certain though, get some professional advice from the team at Bayleys real estate before you make the decision.
Barry McKean
Bayleys Residential Specialist
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