When looking to change properties, one of the big questions is should you buy or sell your property first?
A lot depends on your own circumstances and the current property market, for example whether you are buying or selling in the same area, or whether you are moving to a new location. So to help you make your final decision, consider the following factors carefully and how they affect your specific situation:
How easy is your present property going to be sell?
The average sale time varies from region to region and from month to month. Your sales consultant can advise you about current market conditions, recent comparable sales in your area and the possible demand for your property to help make the decision clearer.
Do you know what your property is worth?
Until you have an approximate value it will be difficult to establish an accurate picture of what you can afford to spend on your next property. Your sales consultant can show you a Comparative Market Analysis of what similar properties have sold for in your area in recent times to help you gain an understanding of the potential worth of your property.
What if you sell and don’t find a new property?
If you choose to sell first, you will instantly become a cash buyer and be in a far stronger position to purchase as soon as you see what you like. And if you have already done your homework and know the market that you are looking to buy in, you will be ready to confidently take that next step.
What if you haven’t sold and have found your dream property?
The best way to avoid the pressure of confirming the contract on the property you want to purchase and taking the risk your own property will sell in time is to talk to the experts first.
Obtaining quality advice on your own particular situation from your sales consultant will enable you to confidently make any final decisions.
What if property prices are rising?
If you’re in a rising market, it could make sense to buy your new property first at its current market value, negotiate a longer settlement, and have your current property potentially rise in value at the same time. In this scenario, you could earn more from selling your existing property after the purchase of your new property.
What if property prices are falling?
Falling property prices may work in your favour as well if you can attract an interested buyer before prices dip lower, leaving you free to purchase your new property at the lower end of the market. However, falling property prices is also an indication of a slower market, meaning it could take you longer to sell your existing property, and you’ll be committed to a new property.
At the end of the day, your local real estate professional is going to be equipped with the information you need to make an informed decision.
So do your homework and then enlist the help of a sales consultant to give you their opinion on your property, your area and the local market.