Don’t sell until you have repurchased, warns Cape agent

CAPE TOWN (June 27) - In the current, still buoyant Cape residential property market estate agents are finding that some homeowners are selling without giving sufficient thought to where they will move next, according to Tony Clarke, MD of Rawson Properties.

“It may seem odd for an estate agent to be advising caution as regards selling, but we have recently had one or two cases where the sellers sold very hastily, simply because they could obtain a highly satisfactory price,” said Clarke.

“They then have to rent, sometimes for an extended period, during which time their cash did not appreciate at the same rate as the value of their home.

“All too often they then found that they disliked their rented premises, missed their old home and finally bought under pressure a property that did suit their needs nearly as well as their previous home.”

Clarke’s advice to all home sellers, particularly those who have no need to sell in a hurry, is to arrange to buy their follow-up house before selling their existing home. They can, he said, make the purchase of the new home subject to the sale of their existing home and although this may annoy certain sellers it is a common practice.

“While you are searching for the right property to purchase,” said Clarke, “you can prepare your property for the market by repainting and upgrading the garden.”

The need to secure the sellers’ follow-up home in advance, he added, is particularly necessary for those who are downscaling to lock-up-and-go estates or retirement villages.

“The demand for this type of accommodation,” he said, “has grown so fast that they are now often expensive and not easily found - so, again, it is essential to secure the purchase of your new home before you put your current property for sale.”

Ideally, said Clarke, matters should be arranged so that the transfers of the sold and the bought homes take place simultaneously. The need for renting and/or bridging finance can then be avoided and only one move will be necessary.
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