Put the sale before the buy
SOMEpeople can afford to buy before they sell their existing home, but not all of us are in these happy circumstances.
Andthe real risk in buying prior to selling can be the long time itmaytake to sell. Or youmaysell easily, but not achieve the price you had expected and budgeted for when purchasing the new home.
The mostcommonmistake sellers make is the presumption that they will sell easily and for the price they require.
That means that for the vast majority of us whose current home is already financed, there are considerable risks.
The pros of not selling are that you are able to secure your next home without hassle and pressure and negotiate from a position of strength, providing your finances are in place first.
This allows you time to plan the move and renovations.
Youmaybe able to buy at today’s prices and sell at tomorrow’s. However that only works in a rising market. Andyou don’t have to find any temporary accommodation between homes.
The cons however are that you could buy the home and discover between the time you bought and eventually sell, the price you paidmayhave been too much.
Sometimes buying without selling is associated with impulse buys, decisions get rushed and mistakes get made.
There is a massive financial risk – you have the costs of the new home plus the existing cost of your current home running side by side forwhoknows howlong?
Another major con is that you are committing to a purchase price without knowing your selling price. Youmay sell for the right price, but if that takes six months can you cover those costs easily?
I hear from so manyhome owners in this dilemma andmyadvice is always that unless you are financially comfortable to undertake this scenario, avoid the risk. Whenyou sell first, yes, youmayhave to move out before your new home is ready, or even located. But isn’t it less stressful to take a holiday or move in withMum?