Given that two of our featured homes are coming up for auction in a few short weeks, and some of the buyers keen on those properties would like to bid, but have houses to sell, it begs the question – is it better to sell first then buy, or buy first then sell?
The correct answer, in my view, varies with the flow of the market, your own comfort levels, and the willingness of your lender to cover you if necessary.
Clearly in a rising market, it is preferable to buy first – to establish a purchase price, and then while you get you own house onto the market and sold, its value continues to rise.
In a falling market the reverse applies – get yourself sold first and take your time buying.
Timing around these transactions is important. As a seller, you might like to negotiate a longer settlement, and as an unconditional buyer (with a house still to sell), you may want to do the same – 6 month settlements are not unusual under these circumstances.
As a buyer, if you are wanting to make an unconditional offer, or bid at an auction while still having a house to sell, not only securing a longer settlement is a great idea, but I’d definitely recommend chatting to your bank or lender so that if you find yourself in the situation where you need to settle on your purchase before you’ve managed to settle on the sale of your house, bridging finance is pre-arranged and available to tide you over and also to allow you to sleep while you’re waiting for your house to sell.
We are still seeing multiple offers on properties and plenty of bidding at auctions. Often it’s the cash/unconditional buyer who carries the day and wins, so if you’d like to discuss any of these thoughts with me in the run up to an auction or making an offer on a home you’ve fallen in love with, give me a call.
Have a great week – we may see you at some of our gorgeous homes this weekend.