Craig Pontey’s Blog – Sell Now. Buy Later. Buy Now then Sell Later.

December 6, 2013 by Craig Pontey

Sell first, buy first or sell now and buy later. It’s a question that at times can sound like, what came first the chicken or the egg, it might also be a tougher question to answer when we have market conditions like we are currently experiencing.

But it is a reality that anyone selling their homes and buying a new one will almost always face this question. Should I sell first and then buy or buy and then sell and it really does not matter the mounts of money involved, its still an emotive time.

It’s always a tricky question but we think the best advice is to talk to your family and trusted local estate agent. A good local agent will be active in the market every day and while it’s not possible to directly answer the question for you, an agent can help with some important things to consider. Points you might not be aware of.

First up you will need to take into account a few fairly common points and these would include your own financial position, the local housing market where you are buying and selling. And if you do sell before buying and are able to consider renting or living with family or friends if you find yourself between homes and keep in mind the financial and emotional cost of both options.

Then always above all else do your homework so that with your agents help you understand the housing market in the area areas you are buying and selling and make sure you ask lots of questions. Agents are always good talkers and they’re here to help.

Then you will need to consider the contract settlement terms for your sale and purchase, they need to line-up. You might need to think about the options of a 30, 60 or 90 days settlement period or in some cases longer, again plan early and even thinking about a lease back. Then again if you are in a fast moving market you could improve your bargaining power if you’ve already sold, and you’re ready to move and have the cash to complete a new purchase.

Your financial position

Your personal financial circumstances will always be key. If you are moving to a new home that you can’t settle without clearing your existing mortgage then you will need to sell first? There are other loan options, but again these can be expensive options that you need to think about very carefully. If you are downsizing and at a lower price you will have other options and that might include moving funds into superannuation or a family trust, but always keep in mind the big picture and account for all costs.

Planning really boils down to the degree of financial flexibility you have and what impact your move will have in both the short and longer term.

If you’d prefer to keep things simple, then it might suit you to sell your place before you buy the new one, and aim for a long settlement term on your contract and this will give you time to buy, but again in a very active market you will face competition, so allow enough time to do your research.

But from all of my years of personal experience, the last thing you want is to feel rushed into a decision to either buy or sell. The best approach and it’s simple, is to sit down and work out all the options you have and try the idea of a written plan and always include some back-up options and talk to your local trusted agent, we are always here to help.

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