One of the most common questions asked by Home Buyers is whether they should sell their property before buying or can they buy subject to sale? Although there are pros and cons to both methods, we are a strong believer in selling first and here are our reasons why.
1. Better Chances
In a competitive market where properties are getting snapped up quickly with buyers offering contracts without any conditions attached, offering a contract subject to sale won’t be looked upon favourably. There are quite a few low-interest bridging finance options out there at the moment, and exploring these options would be more viable than offering a subject to sale clause. If this is not an option after speaking with your bank/broker, it is advisable to sell first and then rent for 6 months in the area you are looking to buy. You can then look at on market and off market properties easily and monitor the market.
2. Better Finances
Secondly, by selling first, you will know exactly how much you can spend on your next home which helps you to plan your finances better and minimise the risk of ending up with a more expensive mortgage than planned.
Buying Subject to Sale
On the other hand, if you insist on buying subject to sale, be sure to take into account the additional risk and be prepared for disappointment. You could also try to find off-market properties where the seller may be happy to accommodate your condition.
Selling your property first helps to take the financial weight and risk of losing your dream home off your shoulders. If you are looking for more advice on how you should proceed with this decision, we are more than happy to lend you a hand
At Calibre we work in collaboration with our buyers and sellers to implement the most suitable strategy to achieve their goal.
Get in touch to find out more
Reach us at 07 3367 3411.