Since most of us keep our equity in property, the process of buying and selling usually goes hand-in-hand, unless you are a first-time buyer, though a common approach to conducting property transactions, buying and selling simultaneously can cause homeowners to make some rash decisions.
According to Adrian Goslett, from RE/MAX, the best way to avoid this is to consult a trusted local real estate advisor who can help you manage the timelines so that you do not end up making any decisions you might later regret.
He said that if homeowners receive an offer on their property, they might rush the purchase of their new home simply because they need to be out of their current home by a certain date.
Similarly, if they find their dream home first, they might rush the sale of their current home and accept low-ball offers so that they can secure the necessary financing to purchase the new property.
On the other hand, homeowners who choose to put their property on the market while they are searching for a new home have no deadlines around which to work.
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“Until they either sell or find a home, they must live with the uncertainty of not knowing how aggressively to be marketing their home or how much time they ought to dedicate to finding a new home,” Goslett said.
Homeowners should therefore involve a trusted real estate advisor from the very beginning. Before homeowners even begin the process, they ought to chat with a local suburb expert who can paint them a picture of current market conditions and help them set realistic expectations around timelines for both buying and selling.
If homes in their suburb are selling fast, they might be advised to first find a new home before selling, and vice versa.
Market conditions provide homeowners with guidance in how they approach the buying and selling process. In a buyer’s market, homes will sell slower and fetch lower prices. In a seller’s market, homes will sell quicker and fetch higher prices.
For homeowners who are buying and selling within the same market they will be market neutral. What you think you may be losing on one side, you’re gaining on the other. For example, in a buyer’s market, you might sell your home for less than you may have wanted, but you will be buying at less than you would have paid in a strong seller’s market.
• Information provided by Private Property.
Read: Secrets to selling your home fast
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