Selling or buying first

In an ideal world your current home would sell and you would move straight into your perfect home at the same time. However, this is not easily achieved and most homeowners are left with the decision on whether to buy or sell first.

Selling First

Selling first and then buying your new home would seem like the logical order for most. It is the least risky of the two as it allows you to know exactly how much you have to spend.

The negative of course is that it leaves you with nowhere to live! You then have the hassle of possibly storing your furniture whilst you rent, not to mention the huge disruption to the family’s lives as you attempt to bed them down in their new surroundings.  Hopefully you won’t have to squash in with your relatives whilst you are trying to locate and purchase the perfect family home.

One way around this is sometimes achieved by selling your home with an extended settlement of say 3-6months. That option, of course, depends on the property market and the extent to which you can push the proposed buyers.

Buying First

Buying first allows you the time to find your next home without time pressures and removes the complexities of rental accommodation.

However, like most things in life, there are risks. If your existing home takes longer than expected to sell, you carry the financial burden for both properties. This can prove costly, but it depends on your unique situation and the way you choose to finance your purchase. It may also mean, with the pressure to sell, you are forced to take a lower sale price than you had initially hoped for.

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