Should I buy or sell first?

Buying and selling at the same time can bring added stress to your move. Deciding whether to buy or sell first can be a difficult decision. On one hand, you’d like to know what you will get for your home before committing to another and on the other hand, you want to know what you can buy before committing to sell. People can sometimes get so confused about which way to go that they end up doing nothing. To help you decide how your next move will go, we have discussed the upsides & downsides to either selling or buying first.

Sell First

The Upside

• You know exactly how much you got for your home and therefore how much you can spend.

• You are not under any pressure to sell your home quickly and can focus on getting the best price.

• You are not under any pressure to take an offer.

• You can negotiate a long settlement to give you more time to find the right home for you.

• You are in the best position to negotiate a great price on the purchase of your new home.

You know exactly how much you got for your home and therefore how much you can spend.

The Downside

• If you have not found a property before the settlement date, you may have to look at one of the short term options. However, it is very rare that a seller will not find another property before the settlement of their own.

Buy First

A "Subject to the sale" offer.

Your offer is accepted with a clause stating that the offer on the property you are buying becomes unconditional when: Your current property sells i.e. you accept an offer on it and it goes unconditional. You elect to confirm in writing to the seller of the home you wish to purchase that the condition has been satisfied.

The Upside

• You have secured a property and know where you will be moving to when your home is sold.

The Downside

• You are not in a strong negotiating position when you have a subject to sale clause, therefore you will often need to pay a higher price to "lay by" the property.

• You will be under pressure to get your home sold quickly. The focus will be on time, rather than getting the best price. Often people have sold for less just to keep the property they have purchased, which is not always a bad thing as it is the end result that counts, getting into the new home.

• You are emotionally invested in and attached to a new home that may not end up being yours. This can cause stress if it doesn't eventuate.

You will be under pressure to get your home sold quickly. The focus will be on time, rather than getting the best price.

Contact us today to discuss the pro's and con's of both strategies and see which is the most suitable for your circumstances.