Selling a property can be an overwhelming and at times emotional process.
This Ultimate Selling Guide has been designed to provide you with comprehensive tips and hints to navigate the selling process.
Should I Buy or Sell First?
When it comes to selling a property, the age-old issue is whether to sell or buy first. Timing, seasonality and market conditions are strong factors contributing to this decision.
In order to determine which strategy may be best suited to your personal circumstances, it is important to weigh up the pros and cons of each option.
|Selling First||Buying First|
|There is no need to apply for a bridging loan to finance both properties.||You will have the certainty of only moving once.|
|You will know the exact amount of money you will have to put towards your next purchase.||You can spend all the time you need to find your new home.|
|You will not have any urgency to sell, therefore you can wait until you are happy with the sale price of the property.|
|Selling first||Buying first|
|You may be forced to rent until you find your next home - thus you will need to move twice.||You may be forced to obtain a bridging loan in order to finance the payments on both properties in the interim.|
|You may feel pressured to find your next home and rush your buying decision.||Should your existing home not sell for the desired price, you may need to source additional funds to cover the shortfall.|
|The burden of two mortgages could influence you to accept a lower offer.|
The timing of selling your home will largely depend on your personal circumstances and needs. However, there are certain factors such as seasonality and market conditions which you should consider when selling your property. Although these factors may influence the sale both positively and negatively, and at times cannot be controlled, it is vital to consider each carefully.When is the best time to Sell?
Market conditions may change due to many factors such as interest rates, employment, rises in living cost, etc. These factors will influence both buyer and seller demand. As a seller it is important to understand what market you are selling in as it may impact the sale price of the property.
A seller’s market occurs when demand for homes exceeds the amount of homes which are available for sale. This can be city wide but more often on a suburb by suburb basis.
How it may affect you:
In a seller’s market, you are more likely to sell your property for a higher price. However, it is important not to overprice the property as this may still impact your ability to sell.
A buyer’s market occurs when the number of homes available for sale exceeds the number of buyers who are looking to buy.
How it may affect you:
In a buyer’s market, you need to ensure your price is realistic, appreciate it may take a little longer to sell and ensure you work with your real estate agent to maximise your selling price.
NEXT: Valuing Your Home