Is it better to buy first, or sell first?

If you’re considering a move, this big question can stop you in your tracks. Should you sell your existing home first and enjoy the assurance of shopping for your next one with certainty, or is it better to sit tight until the right property comes up, and then get your sale underway?

Let’s dive into this dilemma and consider the pros and cons of each option to choose what’s right for you.

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Transcript:

 What comes first, the sale or the purchase? If you already own a property and you're planning your next move, this question can do your head in. Hello, I'm Claire Corby from Capital Buyers Agency. Today we're breaking down one of the most debated topics for homeowners considering their next move. Is it better to sell first or to buy first?

Spoiler alert. There's no one size fits all answer here. But hey, let's walk you through the pros and cons of both pathways to help you make a decision that best fits your situation. I. This dilemma is the real estate version of the classic chicken and the egg question. If you already own a home and you are ready to make a move, the timing question looms large in your mind.

Should you sell first and then shop with a clear locked in budget, or should you buy first to lock in the right property and then sell on your terms? Both options are valid and both come with trade-offs. What's right for you? Depends on your financial position, your risk tolerance, and your sleep at night factor, and also what the market is doing in the particular area you're looking to transact in.

Let's start with a scenario of selling your existing property first. Now, this is usually the go-to move for the more risk averse homeowners. Selling first gives you absolute certainty. You'll know exactly how much you've sold for, and therefore you know exactly what you've got to spend taking into account the extra transaction costs and taxes.

This option eliminates the stress of two mortgages. You're in a clean position and that can feel like a huge relief, but that certainty can come at a cost. If you haven't found your next home, by the time settlement rolls around for your sale, you may end up scrambling. I. This can look like temporary accommodation, perhaps moving in with family, paying for storage units.

Look, it's all possible, but it's all stressful. There's also the risk of feeling pressured to buy something quickly, just to get back into the market, which can lead to regret later on if it's a poor choice. And here's something that doesn't always get mentioned. Selling first can often require a double move.

You pack, you move into something short term, and then you move again. When you finally get the keys to your new place, assuming you don't have to do another move in the middle of that as well. This adds cost, it adds hassle, and it adds a lot of disruption to a daily life. Look, especially if you've got kids, pets or just a general dislike of cardboard boxes.

Now let's consider the second option. Buying before you sell. Buying first gives you certainty about where you are going. You can take your time finding the right place, line up your move neatly, and transition smoothly from one home to the next. This strategy is particularly relevant in a tight market where good properties are rare and can sell quickly.

With that peace of mind though, comes financial pressure. You need to be able to fund the new purchase while still owning your current home. That might require tapping into equity, arranging breaching finance, or carrying both mortgages for a while. And if your existing property doesn't sell quickly or doesn't fetch the price you are hoping for, the whole situation can get very stressful very quickly.

And a third consideration is about the rhythm of supply in the property market. It is important that you really consider the timing of your move in Canberra. For instance, the spring and early autumn months typically see a flood of new listings come online. That increased supply might give you more options to choose from when buying, but it also means more competition when it's your turn to sell.

So depending on when you are planning to transact, the balance may tip in favor of one approach over the other. And remember, not every suburb or price bracket behaves in the same way At the same time, what works in one segment of the market might not work in another. This can be really helpful to keep in mind if you're buying into a different price point or location.

Please don't assume that your sale and your purchase will be under the same market conditions. You may need to take a little longer to get the right offer for your sale, and you might like to allow longer than you'd hoped to buy the ideal property. So to summarize, there's no one right or wrong answer here.

When it comes to buying first or selling first, what's best for you really depends on your financial setup, your risk appetite. The pace of your local market, and of course, what's happening in your life at the time. Selling first gives you clarity around your budget, but it can add time pressure if you haven't found the next place yet, which might mean that double move, adding time, cost, and a bit of household chaos.

Buying first gives you the security of knowing you've bought the ideal property, but it can test your finances and add stress if your current home doesn't sell quickly or smoothly. Either way, it's balancing act. With the right planning and the right team beside you, you can move forward with confidence knowing you've made the right decision for your situation.

I hope you found this helpful. If you'd like more practical insights, head over to our website, www.capitalbuyersagency.com au, and then the black banner along the top is where you can subscribe to our Insiders newsletter. This is packed with behind the scenes tips, smart strategies, and market updates for buyers.

So until next time, happy house hunting.