Many of us will have to sell a property in order to buy another, and trying to juggle both deals is enormously stressful. Here are our tips to make things a little easier.
If you've tried everything possible to get an outcome, and it just hasn't worked out as planned, stop trying so hard. Relax. Maybe the timing's not right. Maybe it wasn't in your best interests. Maybe while one door seems to be closing, another is opening.
Robin S Sharma
Buying or selling a home is always going to be a big deal. It’s a major financial commitment, it’s stressful, emotional and in an ideal world, no one would have to do both at the same time. Unfortunately, though, life has a nasty way of throwing unexpected curve balls and generally speaking, most of us will have to sell one property in order to finance another. Things become even more stressful once we realise that logically, we have to buy and sell at virtually the same time.
The movies make it all seem so easy - the actors put up a ‘for sale’ sign one minute and move effortlessly into their new dream home the next. There’s no frantic communication with estate agents, no endless viewings of totally unsuitable (read awful) homes, sales don’t fall through and qualifying for a bond doesn’t even get a mention.
Things are somewhat different in the real world: nerves are frazzled, emotions run high and Murphy’s Law dictates that everything that can go wrong probably will.
We’ve put together some tips to help smooth the way
- Sort out your finances. Before you start looking for a new property you need to have a good idea of how much you’re likely to get for your current home. You will also need to calculate your bond affordability.
- Start researching local markets before you buy. Forewarned is forearmed as they say in the classics, and you should have a firm idea as to what you can expect to pay for a property in the area in which you are interested. Don’t assume that you can get a realistic idea of prices from internet listings, you will need to delve a little deeper than that. Chat to local estate agents – they have valuable local knowledge and will be able to provide you with facts and not a price based on a seller’s sometimes unrealistic idea of what their home is worth.
- Know exactly what you are looking for before you start pounding the pavements. Make a list of what your ideal property should feature and pass this information on to your estate agent. Time is always precious, and no one wants to waste it looking at unsuitable properties.
- Get your priorities straight. Selling your current home is far more important than buying something new. Think of it this way – although not ideal, you could always rent in the short term if you can’t find something suitable to buy once the sale goes through. Conversely, this is usually only possible if you sell your current property. Trying to pay a bond and the rent on a new home is probably going to prove both mentally and financially challenging.
- Set a definite timeline, an ‘I need to sell by such a date in order to buy by such a date’ type of thing. This is particularly important for those who are moving to another town or city. Have a firm plan in place that takes all eventualities into account. Decide what would happen should you not meet your selling deadline, and have plan B in place.
- Consider extending the date of occupation if a good offer for your current home comes in before you’ve managed to find a replacement
- Start packing. Pack away and store all non-essential items in clearly marked boxes. This has two benefits - firstly, it allows you to get a head start on the moving and secondly, it helps declutter the home, thus making it more appealing to would-be buyers.
- Don’t allow yourself to be pressured. The seller of the home you want and their agent will generally know that you have to buy something as quickly as possible and may use this to leverage a deal. Walk away if you are uncertain about any aspect of the sale and focus on finding something that ticks all the right boxes, and at the right price.
- Don’t panic. Try to put things into perspective and don’t despair if you can’t find your ideal home immediately. Again, if the worst comes to the worst and you can’t find that perfect property, a short-term rental could be the answer. It may seem like the end of the world, but renting (particularly in a new town) will allow you to take a long, leisurely look around to determine where you do - and most definitely don’t -want to live.