So, you’ve outgrown your current home. What was once a perfectly sized home is now feeling small and lacking in space. It’s definitely time to move out. However, once you’ve made the decision, it can be hard to take that first step. You’re probably wondering: Do you put your house on the market now? Do you go to auctions? Or, do you commit to 12 months of intense saving to afford your dream property?
When it comes down to it, the age-old question is this: should you buy your new home and then sell your old one, or should you sell your old home and then buy?
Each individual’s situation is unique, so we’ll address both methods here to determine which path is right for you.
Sell first, then buy your new home
For many, this is the most logical choice when moving. When you sell your home first, you will know exactly how much money you have received and how much to spend on your new home. You’ll also be potentially protecting yourself from landing in any financial hardship. Furthermore, if by chance you overestimate your property’s sale price, you won’t have committed to any future debt, such as, say, another home.
However – and this is the big one – you do run the risk of not finding a new property to move into in time. Settlement periods are usually from 30-120 days, but if you haven’t found a new home to purchase, this may not leave you with a lot of time to buy a new home. Let’s not forget you’ll need to factor in your new home’s settlement period, too.
If you do choose to sell first then buy your new home, you can always rent while you look. While this isn’t such a bad idea, it means you will need to pack and unpack your whole life… and then do it again in as little as a few months once you’ve moved into your forever home.
Lastly, house prices may rise after you sell. This means that the equity you might have wanted to use for your new home might be swallowed up by the property market spike.
Buy first, then sell your old home
For the financially able, buying first and then selling your old home can be a good option. Sitting and riding the property wave until a peak occurs might allow you to sell for a good price. Buying first also means you won’t need to rent in the interim – once the settlement is over, you’ll be able to move right into your new home. However, this option is not without financial risk. For example, what happens if you can’t sell your home? Or the market bubble bursts and you’re forced to sell your home for less than you expected?
The good news is, whether you are thinking of selling first and then buying a home, or buying a home first and then selling, Hotondo Homes is here to assist. We have been building beautiful new homes for over 30 years. From acreage homes to coastal retreats, our builders can do it all. And most importantly, we understand what families and investors want in a property. So, whatever you have in mind when it comes to your dream home, we can make it a reality. Contact us today to start a conversation with one of our builders.