Ready to make the move from your current home? It’s an exciting time, but unfortunately, the process of buying and selling simultaneously is anything but simple!

Australia’s housing market is incredibly competitive, and timing is everything. You may find your dream home before your current one sells – and you need to act fast before someone else snaps it up!

On the other hand, if you wait too long after selling, the equity you’ve derived from your previous home won’t buy as much when you purchase the next.

It pays to have a plan in place, but you need to be flexible with buying and selling, because things don’t always go to plan.

Let’s explore the pros and cons of each planned approach, so you can make the right decision for your circumstances.

Should I Aim to Buy First?

Buying your new home first means that you have a better idea of what your future holds and where you will be based. Securing your dream property can also be a powerful motivation throughout what can be a bit of a process!

Of course, this will likely mean bridging finance – a short-term loan designed to help manage the overlap between owning two properties. While the interest rate will be higher than normal, remember it is only for a brief period and it does give you a little more breathing room.

When buying first, we do suggest being slightly more conservative on purchase price, because you just don’t know what your current home will sell for.

Subject to Sale Clauses

The other option is to include a “subject to sale” clause in the contract; however be aware that vendors are more reluctant about these, and will usually expect a higher price to compensate for the uncertainty.

If the vendor does agree to sign subject to sale, they will likely want to include a “sunset” clause – meaning that they can still consider and accept other offers, unless you can come up with the cash quickly. If you’ve set your heart on a particular property, it can be devastating to miss out!

A “subject to sale” clause can be a particularly tough pill for a vendor to swallow, if your home isn’t even on the market yet. Should you have an unconditional offer on your home however, the vendor may be more willing to sign a contract that includes a “subject to settlement” clause.

While some people balk at the idea of bridging finance, it can save you literally thousands of dollars as the vendors will find a 7 day finance clause a much more enticing prospect.

What about Selling First?

Selling first does have some benefits, as you will have a clearer picture of your finances and exactly what you can afford. However it also comes with the stress of finding a suitable property quickly, and even the risk of being temporarily homeless.

For this reason, we suggest requesting a longer settlement of 90 to 120 days when selling your home first.

Ideally, you should aim to have settlement on the same date for both properties – and make sure you use a solicitor, experienced in buying and selling simultaneously, for both transactions.

It’s also a great idea to get the selling agents of both properties on a call, to help with lining things up.

When you’re working within a competitive market like North Brisbane, timing is everything. That’s why it pays to have the right strategy and support in place.

The Value of a Buyers Agent

A skilled and experienced buyers agent, like Lauren Jones at LJBA, can be worth their weight in gold when it comes to buying and selling simultaneously, making things a lot less stressful. For example, Lauren can assist with:

• Market Insights: As a Qualified Property Investment Advisor (QPIA®), Lauren can provide current data enabling you to make informed decisions about your purchase.
• Local Knowledge: You benefit from our years working within the Brisbane property market, especially if you’re not familiar with the area.
• Saving Time: By scouring the listings and liaising with local agents, we do the preliminary legwork. All you have to do is consider properties that actually meet your brief!
• Valuable Connections: We can assist with contacts for reliable local removalists and other tradies, to support you throughout your move.

Like to have a dedicated buyers agent by your side to help navigate this complex process with confidence? Book your free consult call with LJBA today and let’s make your next property swap as seamless as possible!