Selling to Buy
Buying a new home can be a big undertaking. Add in selling your current home at the same time and it has the potential to be an overwhelming endeavour…but it doesn’t have to be.
We can help reduce the stress because we know the market, the options available and can help make a plan that suits you to make the process as seamless as possible.
Organically there is little chance of the two sales closing on the exact same day. You may find a great home but no one has put an offer on yours, or someone might make you the perfect offer but you haven’t found your new place yet.
There are ways to line up the dates but realistically you will need to focus more on either buying or selling first. We’ve outlined the pros and cons of both scenarios, below.
The pros of selling first:
- You know exactly how much money you have to spend
- It’s easier to get a new mortgage when you’ve sold your old home
- You won’t have two mortgage repayments due each month
The cons of selling first:
- You may have to rent while you look for a new property
- If renting a furnished property, you could incur storage costs for your own furniture
- If house prices increase you may lose some of the value of your sale
The pros of buying first:
- You will be able to move all of your furniture to the new property
- You have plenty of time to get the new property ready and make your move
- You can prepare your old home for sale and sell with vacant possession
The cons of buying first:
- You could end up overvaluing your existing property leaving you with a larger mortgage
- If your sale takes a while you can end up paying two mortgages for an extended time
- A higher debt to income ratio makes it harder to qualify for a second mortgage
What’s right for you may vary depending on your circumstances, that’s why we’re here to help.