How to Sell and Buy a House at the Same Time
Your initial struggle to get your foot on the property ladder and buy your first home will seem like a walk in the park – once you’re ready to move on. How on earth do people manage to sell and buy a house at the same time?
Knowing what to expect, and getting the right support, are key to making the process easier.
Should you buy before you sell?
You may have already set your sights on a dream home, expecting to make a good profit on your current property in a booming market. However, don’t throw caution to the winds just yet, as there is no telling how much your house will actually sell for.
For this reason, it pays to be slightly more conservative on the purchase price of your new home if you choose to buy first.
While you can insert a “subject to sale” clause in the contract for your dream home, this does have some drawbacks. Some vendors are turned off, or they could expect a higher price or another sweetener to compensate for the uncertainty.
According to Brisbane Buyers Agent Lauren Jones, ‘A vendor may agree to sign subject to sale, provided they get a “sunset” clause. This means they can still consider and accept other offers unless you come up with the cash quickly.’
A lot depends on where you’re at with selling your property. If your house is already on the market, or better yet under offer, a vendor may agree to a “subject to settlement” clause.
Another option is to organise bridging finance, a short-term loan to cover both properties. Bridging loans usually have a higher interest rate, and there is the pressure of getting a quick sale – but they also have the potential to save you thousands in the long run.
Would you prefer to play it safe?
Selling your home before buying gives you the advantage of knowing exactly what you can afford. The flip side is you have a tight deadline to purchase, or risk having to rent. With Brisbane’s tight rental market, this can be incredibly challenging.
‘Selling first means the pressure of finding a suitable property quickly, and even the risk of being temporarily homeless,’ Lauren points out. ‘For this reason, we suggest requesting a longer settlement of 90 to 120 days when selling your home first.’
Getting your timing right
When buying and selling, timing is everything. Ideally, you should aim to sell and buy in the same market for maximum advantage – if your wait too long after selling, the equity you’ve derived from your previous home won’t buy as much.
Buying and selling a property at the same time can be a stressful and time-sensitive process. Engaging the services of a buyers’ agent can make all the difference, providing you with expert guidance and support every step of the way. Once seen as a service reserved for high-net-worth individuals, buyers’ agents are now a valuable asset for all purchasers — from first home buyers to seasoned investors.
When it comes to navigating the complexities of a simultaneous sale and purchase, the expertise, experience, and extensive networks of a buyers’ agent can be the key to streamlining and simplifying your property swap!
