To Buy or Sell First, That is the Question

The million dollar question for most home owners. Should I buy or sell first? Let’s look at the advantages and disadvantages of both options.

Buy first
Pro’s
  • You will have secured your new home as a safety net should your old home be sold quickly
  • Ability to move all your belongings into the new home and settle the family in immediately
  • Able to take as much time required to sell your home for the right price
  • You can access equity in your current home to pay for your new one
Con’s
  • Run the risk of paying two mortgages for a period of time
  • Under time pressures and possibly more inclined to settle for the first price not the right price
  • Need to find the deposit for your new home without having the proceeds of the sale of your old home to dip into
  • Buying a new home without knowing how much you’re going to get for your old home
Sell first
Pro’s
  • Less financial risk as you know exactly what your budget is
  • Less pressure to sell by a certain deadline which means more time to wait for the right price
  • Time to focus on the right marketing strategy to attract the right buyer
  • Additional time to find a new property while your old home is on the market
Con’s
  • Could spend time in transition which could mean a significant spend on interim rental accommodation and
  • Additional interruptions causes stress on the family
  • Additional costs of storage and moving twice
  • Property prices could increase between selling your old house and buying your new one

Depending on how risk averse you are, will ultimately help steer you toward the right course of action for you. If still unsure, speak to an experienced S&L agent to receive an objective and experienced opinion. Search through our website to find the agent closest to you.