Put the sale be­fore the buy

Mercury (Hobart) - Property - - Front Page - AN­DREW WIN­TER

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?

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