Are you needing a bigger home but really unsure what comes first selling your home or buying a new home? It’s a hard dilemma so let us help you navigate your way through the pros and cons of the different options because timing is key!

The Sell-First Strategy: Playing it Safe

Selling your current property before buying a new one is often considered the more conservative approach. Here’s why it might work for you:

  1. Financial Clarity: You’ll know exactly how much you can spend on your next property, reducing the risk of overextending yourself.
  2. Stronger Negotiating Position: If you need to sign a contract for a new property that includes selling your existing property, your offer may not be attractive to vendors in competitive markets. Having already sold your existing property you’ll have a stronger bargaining power.
  3. Reduced Pressure: You won’t feel rushed to accept a lower offer on your current home to meet settlement deadlines on a new purchase.

However, this approach isn’t without its challenges:

  1. Simultaneous Settlements: Ideally you’ll be able to lineup the settlement date of your existing home with the same settlement date for your new home
  2. Temporary Accommodation: You may need to find short-term housing between selling and buying, which can be costly and inconvenient.
  3. Market Movements: In a rising market, you risk property prices outpacing your buying power while you’re between homes.

The Buy-First Approach: Seizing Opportunities

Purchasing your new home before selling your current property can be advantageous in certain situations:

  1. Seamless Transition: You can move directly from your old home to your new one, avoiding the need for temporary accommodation or a rushed move.
  2. Capitalising on Market Opportunities: You’re well-positioned to act quickly when you find your dream home, without the constraint of needing to sell first.
  3. Easier Property Presentation: Keeping your current home in show-ready condition is simpler when you’re not living there!

But this strategy also comes with potential downsides:

  1. Financial Strain: You may need to manage two mortgages simultaneously if settlement dates don’t align to be a simultaneous settlement.
  2. Pressure to Sell: The urgency to sell your existing property might lead you to accept a lower offer than desired.
  3. Bridging Finance: You may need to arrange temporary financing, which can be very costly as well as needing to be arranged before your home gets put on the market.

Crafting Your Personalised Strategy

The best approach depends on your individual circumstances, including your financial situation, local market conditions, and personal preferences. Here are some factors to consider:

  1. Market Analysis: Assess the current state of the property market. Is it a buyer’s or seller’s market? This can influence your decision significantly.
  2. Financial Health: Evaluate your capacity to manage two mortgages temporarily if needed.
  3. Risk Tolerance: Consider your comfort level with financial uncertainty and potential stress.
  4. Time Flexibility: Assess how flexible you can be with moving dates and temporary accommodation if required.

Innovative Solutions

  1. Extended Settlement: When selling first, negotiate a longer settlement period to give you more time to find and secure your new home.
  2. Rent-Back Agreement: If buying first, explore the possibility of renting your sold property back from the new owners for a short period.
  3. Conditional Offers: Make your purchase offer conditional on the sale of your current property, although this may be less attractive in competitive markets.

Expert Guidance is Key

Navigating the complexities of buying and selling property simultaneously requires expert knowledge and strategic planning. This is where partnering with Pinpoint Finance can make a significant difference in your property journey.

At Pinpoint Finance, we understand the intricacies of the Australian property market and the unique challenges faced by homeowners looking to upgrade or relocate. Our team can provide tailored advice on:

  1. Financing options, including bridging loans and deposit guarantees
  2. Structuring your loans to optimise your financial position
  3. Timing strategies to minimise risk and maximise opportunities
  4. Connecting you with our network of real estate professionals for comprehensive support

By working with Pinpoint Finance, you’ll have access to expert guidance that can help you navigate this complex process with confidence. We’ll work closely with you to understand your goals, assess your financial situation, and develop a strategy that aligns with your needs.

Don’t leave the success of your property to chance. Contact Pinpoint Finance today to discuss your unique situation and discover how we can help you orchestrate a smooth and financially savvy transition to your new home. With our expertise by your side, you can turn the challenge of buying and selling into an opportunity for financial growth and lifestyle improvement.