Do I Sell First and then Buy? Or Buy First and then Sell?

Life’s biggest conundrum – The chicken or the egg?

… or in the case of real estate, selling and then buying OR buying and then selling?

This really is a question to be answered by each individual after consideration is given to your own financial situation and personal circumstances. However, it is also a question we are asked a lot … an awful lot, so here are our thoughts on the subject!

As much as it is our job to minimise your stress through the buying and selling process, and we try extremely hard to do that for you, there is naturally a level of anxiety we cannot remove and the decision you are making is directly attributable to the amount of anxiety or stress that one decision or the other, is likely to create for you!

We have always held the opinion that it is you who knows your home best. If you do a little homework by attending several open homes in your area, homes that present the best fit for what your own home is offering, you will get a reasonable idea of its value.

Engaging a real estate salesperson you trust, is imperative!

You do not want to be engaging the salesperson that is happy to give you the highest appraisal value (and doing your own homework educates you as to who these salespeople are), for them to just cross their fingers for the tenure of your listing hoping that something will happen. These salespeople are those least able to achieve that premium for you by the way!

The salesperson you want will be honest and will err on the side of caution. They will talk you through scenarios and involve themselves in both sides of your transaction to ensure a smooth transition for you from one home into the next. If a premium is to be had, their strategic marketing will bring it forward. There is NO holding your breath and hoping for the best in our business.

Therefore, it will depend how much ‘leeway’ you have between selling and repurchasing. For example, if you are looking to downsize and bank a difference, you may be comfortable with banking less, should your home sell for less than expected. It may be that you are upsizing and whilst you feel you only want to increase your mortgage by $100,000, your bank has actually offered you $200,000. Again, you may be comfortable selling for less and taking a higher mortgage, to ensure you secure your dream home.

When margins are tighter or the stress of making an unconditional sale on your dream home is too much, a conditional ‘subject to sale’ offer is likely more suited to your situation. There is the chance of losing it to a cashed-up buyer if you are not sold, but only you can answer how much that will affect you.

Finally, we would say: whether you buy and then have the stress of a time frame to sell your own home or you sell first, only to experience the anxiety of potentially not finding what you love, there will be pressure either way!

Give the stress to a salesperson you trust, one who shows through sales their success, and then let them have the sleepless nights finding your buyer or next home!