A common dilemma faced by Bacchus Marsh homeowners who wish to move on, is whether to sell their current home before buying a new one or vice versa.
The answer to this often depends on individual circumstances. Some people may get an offer on their current home that they can’t refuse and so are forced to sell first, while others may just find the home of their dreams and so they buy first.
Let’s look at the pros and cons of both scenarios though.
Logically it normally makes the most sense to sell first. If you sell first then you have the advantage of knowing exactly how much money you have to spend on your next purchase, plus you can hold out until you get the offer on your home that you want.
The biggest issue with selling first though, is the lack of time to find a new home. You may find yourself having to rent before you can find a new home (which means 2 potential moves) or you may feel pressured into purchasing a new home right away.
There is the option of asking for an extended settlement though, and if the buyer agrees this will help give you time to find a new home. Otherwise there is the option of buying first.
When you buy first you have the luxury of time when it comes to finding a new home, however buying first also has its issues.
Buying first can put you under pressure to sell your current home quicker, as you may feel the need to hurry up and move on. Another option that some people may need to take is to take out a bridging finance loan, which helps you finance 2 properties at the same time.
Some people can also choose to make their purchasing contract subject to the sale of their current home, however not all vendors will agree to this.
Either buying or selling first can work well though; it just comes down to getting the timing of your property settlements in sync.
The above are just some points to consider, but if you need any help juggling your property transactions in Bacchus Marsh then please get in touch with me.