Choosing Between Selling First or Buying First

When diving into the world of real estate decisions, homeowners often grapple with a common dilemma – should they sell their current home before purchasing a new one, or vice versa? It’s important to be aware of certain factors that can help you figure out what’s best for you.

Understanding Market Dynamics

Before making the pivotal decision of selling or buying first, it's essential to grasp the current state of the real estate market. A seller's market, characterized by high demand, may tilt the scales towards buying first, while a buyer's market, with more homes than buyers, could favour selling first. Keep a close eye on our latest listings to stay abreast of market trends.

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Pros and Cons of Selling First

Advantages:

Financial Security: Selling your home first provides a clear budget for your next purchase, potentially alleviating financial strain.
No Rush to Lower Price: Without the burden of managing two properties simultaneously, you can take your time and avoid hastily accepting lower offers. Understanding property value estimates can aid in setting a realistic price.

Disadvantages:

Temporary Housing: A gap between selling and buying may necessitate temporary housing.
Market Risks: If market prices surge after your sale, you might find yourself priced out of your next purchase.

Pros and Cons of Buying First

Advantages:

Seamless Transition: Buying first ensures a smooth transition into your new home, eliminating the need for temporary housing.
Market Advantage: In a rising market, buying first can be financially advantageous.

Disadvantages:

Financial Pressure: Managing two properties simultaneously can induce financial stress, especially if your current home doesn't sell quickly.
Compromise on Sale Price: Accepting a lower offer on your current home may become necessary to expedite the sale.

Strategies for Success.

• Bridging finance: When leaning towards purchasing your new home first, explore the option of bridging finance– a short term loan covering both properties until the sale of your home wraps up.

• Rent-Back: If your decision leans towards selling first, engage in negotiations for a rent-back agreement. This arrangement allows you to stay in your current home while actively searching for a new one.

• Conditional Offers: Make your offer on a new property conditional upon the sale of your current home.

The AgentSpot advantage.

After considering your options it’s time to talk to the experts. AgentSpot can assist you by organising up to 5 personalised appraisals of your home within 2 business days. You can also engage with a home loan specialist who can provide insights into your equity position and assist in finding a loan that’s right for you.

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