select
|

Buy before selling and cut your stress level

Property sellers often need to decide whether to finalise the sale of their current home before buying another, or to go ahead and shop for a replacement first.

“It’s an important decision to make because the wrong move could have serious financial consequences,” says Rawson Property Group managing director, Tony Clarke.

“Most people find it extremely stressful to move house, and would really prefer to know where they are going to live next, when they can take occupation, what size bond they will need and what their new home will cost them each month.

“They also want, if at all possible, to avoid the cost and the major disruption of having to move twice – that is, once to a rented temporary home while they house hunt and then again to their new home.

“In fact, some sellers will actually go to the extent of buying and moving into their new home before they even list their old home for sale, so that this can be properly “staged” for prospective buyers and they don’t have to deal with the stress of viewings while trying to manage small children and pets.”

Of course, most repeat buyers can’t buy a replacement home without the proceeds of their own sale in hand, but the long-accepted way to get around this has been for buyers to make an offer for the new property subject to the sale of their current home within a certain period, says Clarke.

“This is a buy-first move that many repeat buyers prefer because it reduces the fear of having nowhere to live after their existing home is sold – and the likelihood of paying too much for a new home that they have bought in a panic, or of choosing the wrong home altogether because they are in a hurry.

“However, they do need to know that this strategy is not totally foolproof, because astute sellers will generally only accept a conditional offer to purchase if it also includes what is commonly called an acceleration clause.

“This provision usually entitles the sellers to continue marketing their property to see if they can’t perhaps get an unconditional offer – and if they do get such an offer to then give the original buyers only a short time – usually a week at most – to revise their offer and make it unconditional too.”

Unfortunately, he says, if these buyers are not able to waive the condition that they need to sell their own house first, the sellers will in most cases be entitled to accept the second, unconditional offer and they may well have to re-start their search for a new home.

“But if this does happen, most buyers will at least still have their own familiar home to live in, illustrating once again why it is best to avoid selling until the deal on your replacement home is finalised.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK