Real estate within the current generation are seen as a major form of investment and the on going property transactions are more common than it was previously.
Change of an individual’s current home can be due to many reasons such as financial, family size and investment opportunities. It is a common sight in the recent years that sellers are simultaneously buyers within a different bracket of the market. Buying and selling at the same time must be a process under taken after thorough research due to its tricky nature. Your main goal is to achieve the best price for your home while achieving the cheapest price for your new purchase as well as keeping both settlements in sync.
Market Research
As this process can be full of confusion it is crucial that you keep a constant touch with the current market conditions. It is advisable that you contact a real estate agent for free advice on the current market conditions of the surrounding area of your property and the surrounding area of the potential future purchase. Obtaining market reports will definitely enable you to be ahead of decisions.
Off the Market Sale!
A recommendation to you as the seller is to test the market demand through allowing an off the market sale where a small number of buyers are directed towards your home allowing you to estimate the demanding price of the property. This can be done through involving a real estate agent like myself that will advise the existing client base about your property enabling a number of potential buyers to attend an inspection.
Prepare
A key factor in this transaction is to be prepared ahead of time for any possible changes occurred due to the numerous possible outcomes. It is a must that you have a discussion with your financial institution about your financing capabilities and limits. This will allow you to decide on whether you are able to purchase prior to the sale or pre sale.
Risk?
Risks within this process can be overwhelming; therefore preparation is key in both avoiding and facing these risks. For example, a way of minimizing risk is to sell the current property prior to the purchase of the next one. Be sure of the choice of your next property type, style and area which will allow you to have a clear mind set when making decisions related to the new purchase.
Sync Your Sale and Your Buy
If you’re caught in an early sale which leaves you with no option of a property that you could move out to, the best possible action is to negotiate an extended settlement period of 3 to 4 months allowing you time to purchase your new property where the settlements will be in sync.
What if it’s a must that I buy before the sale?
If it is a scenario where you have found the perfect new home or any other reason that will force you to purchase a new property before the sale of the current property you must consider obtaining bridging finance. This will assist you immensely as the bank determines your borrowing capacity in assumption of the sale of your current property that has entered the market.
It is important that above steps are taken into consideration if you are to sell and purchase simultaneously. Please feel free to give me a quick call if you’re stuck in a similar scenario or anything related to real estate as my experience can eliminate your inconvenience.