Should you sell or buy first?
In a tightly competitive market homeowners are often worried they’ll miss out on a rare dream home if they wait until they’ve sold their existing property.
However, some homeowners are scared to list their home for sale without having already bought a new property in case they don't find what they are looking for prior to the settlement date of their existing home.
In a recent post, Chris Kennedy, Harcourts NZ CEO says that in a market where supply and demand are reasonably balanced, selling your existing home before you buy, tends to make the most sense to Chris. It means you know exactly how much you have to spend when it comes to shopping around for your new home.
Having your home completely sale-ready when you list, gives you free time to visit other properties for sale. It’s also recommended you do some looking around before your own property is listed, so you have a clear vision of what you want.
Have your finances in order as much as possible based on the asking price of your own property (or if you have opted to sell by auction, base this price on the conservative figure of your homes appraisal) so when you’ve sold or are close to selling you can move quickly on your preferred new home. Remember too, you can make your purchase conditional on the sale of your other property.
When the market is heated, and you don't want to miss out if you see something you like prior to selling your existing home, you may be able to bridge finance until your home sells. This would be a last resort in my opinion as you are paying interest in the meantime on the temporary loan.
Buying before you sell may put you under pressure to accept less than you hoped for your existing property.
Ask the agent what are the settlement dates for the new home you like so you can get an idea of the maximum amount of time you have to sell your existing property. Then inquire what is the typical time frame is for your home to sell and calculate from there.
In conclusion, Chris recommends doing as much research and preparation as possible before listing so you’re ready to move quickly if need be. And keep your sales consultant informed of your time frames so they can help you make it all fit together come settlement.