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Buying Real Estate Part 3 - Buy or Sell First?

On Sep 15 2015
Tagged as:
  • Buying
  • myLJHooker Home


So you're going to buy a new home. Now comes the age old question: Should you buy or sell first? Your decision may be affected by a number of factors, such as market conditions, personal preference and your financial situation.

Buying Real Estate Part 3 - Buy or Sell First?

The pros and cons of each option

Understanding Your Options

So you're going to buy a new home. Now comes the age old question: Should you buy or sell first?

Your decision may be affected by a number of factors, such as market conditions, personal preference and your financial situation.
 

 

 

Buy first:

Pros:

  • You will have a home already secured as a safety net if your old house sells quickly.
  • You can access equity in your loan to pay for the deposit for a new home.
  • You can spend as much time as you like shopping around for a new home for sale.
     

Cons:

  • You might have to organise bridging finance between the two properties, giving you a time limit.
  • You might feel pressured by time and accept a lower offer.
  • If your old home sells at a less-than-desirable price, you may have to fund the difference in costs.

 

Sell First

Sell first:

Pros:

  • The proceeds from the sale of your home can be used for your next purchase.
  • You will know exactly how much to spend on your next home.
  • You might have more time to find a new home while your old property is on the market.
     

Cons:

  • If your home sells quickly, you could be left to make a rushed purchase.
  • Local property prices could rise in the time between selling and buying a new home.
  • You might have to spend more money to rent accommodation while between homes.

 

 

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