Should you buy a new home before selling your existing one?

When homeowners decide to sell their property, one important question arises: should you buy a new home before selling your current one, or sell first and then buy? This decision depends on various factors, such as whether you’re moving locally or to another province or country, whether you have children in school, and the need for a deposit.

Benefits of selling your home first

1. Access to a deposit: Selling your current home first allows you to cash out the equity, which can then be used as a deposit for your next property. This is one of the most common reasons why people choose to sell first.

2. Stronger offers: When you sell first, you avoid making offers with contingencies like “subject to home sale,” which require the sale of your current property to secure a deposit. Without this clause, your offer on a new home will be stronger and more appealing to sellers, especially in a competitive market. This could give you an edge in securing your dream home before someone else does.

3. Predictable bond payments: Selling first eliminates the possibility of having to make two bond payments at once. If you can stay with friends or family between selling and buying, you might even save a few months' worth of bond payments, which can help build up reserves for moving and other expenses.

4. Reduced stress: Selling and buying at the same time can be overwhelming. By selling first, you can focus entirely on preparing and staging your home, ensuring it’s in the best condition to attract offers. You’ll also have more time to patiently wait for the best deal without the pressure of finding a new home simultaneously.

Benefits of buying a new home before selling

1. Move only once: If you sell your home first, you may need to move twice—once to temporary accommodation and again to your new home. This adds extra hassle and prolongs the moving process. Buying first ensures that you only move once, avoiding the need for temporary housing or storage.

2. More time to shop: By buying first, you give yourself plenty of time to search for a home you truly love. There’s no pressure to rush into a decision because your short-term lease is expiring, you're tired of staying with family, or the school year is about to start. In a competitive market, having the luxury of time can be especially valuable as you may need to make offers on multiple properties.

How to speed up your property sale

• Choose the right time: If possible, aim to sell during spring or summer when families are more likely to move, and good weather makes viewings more pleasant.

• Select the right agent: In a slow market, choose an experienced agent with strong knowledge of your area and a solid sales track record.

• Consider a sole mandate: Appointing a single agent creates a focused, committed effort to sell your home quickly with minimal stress, offering you better control over the marketing process.

• Accurate pricing: Setting the correct price from the start is crucial. Overpricing can lead to your home staying on the market too long, causing buyers to wonder if something is wrong.

• Legal and compliance: Choose a reliable conveyancer to avoid delays, and ensure all required compliance certificates and plans are in place early to prevent holdups during the transfer process.

• Simple DIY fixes: Small repairs like fixing dripping taps or refreshing the front door can make a positive impression. Don’t go overboard with renovations but handle the basics.

• Home presentation: Declutter and depersonalize your home so potential buyers can imagine themselves living there. Clear countertops and minimize excess furniture to create the illusion of more space.

• Kerb appeal: Keep your garden and entrance neat, trim bushes, and ensure the pool is clean. First impressions are crucial.

• Maximize light: Natural light is highly valued. Clean windows, open curtains, and upgrade lighting where necessary to make your home feel bright and spacious.

• Professional photos: Hire a photographer to capture your home at its best rather than relying on quick phone snaps.

• Be flexible with viewings: The more flexible you are with showing times, the more opportunities potential buyers will have to see your home, increasing your chances of a quick sale.

How to get ahead of other buyers

• Get your finances ready: Clean up your credit and get bond prequalification to know your spending limit before house-hunting. This helps you act quickly and make confident offers.

• Define your needs: Focus only on areas that meet your lifestyle or work needs. Consider factors like proximity to schools or workplaces, home size, and specific features like entertainment areas or low-maintenance living.

• Work with reputable agents: Inform estate agents in your preferred areas about your needs. If they know you’re financially ready, they may notify you of new listings before they hit the market.

• Leverage technology and connections: Sign up for property alerts on portals and spread the word among friends, neighbors, and colleagues to increase your chances of finding a suitable home.

• Make a strong offer: Even if competing with other buyers, you don't need the highest price. Ensure sellers know you're serious, limit contingencies, and be flexible with moving dates.

Making the right choice

Deciding whether to buy or sell first depends on your personal circumstances and preferences. Factors like your financial situation, how quickly you need to move, and the current market conditions all play a role. Consulting with a knowledgeable local real estate agent can also provide guidance and help you make the best decision for your needs.