Your Property Matters with Spencer Schwartz

Sell or buy first: how to avoid property pitfalls

When it comes to buying and selling property, one of the biggest dilemmas is whether to sell your existing home before buying a new one, or vice versa. The decision can be complex, and it’s essential to consider your individual circumstances carefully.

Selling first

If you have an existing property that needs to be sold, it may be beneficial to get it on the market sooner rather than later. This approach can help you avoid disappointment if you’ve set your heart on a new dream home. Selling first might also put you in a better bargaining position, depending on market conditions and demand for your property. For instance, in a buyer’s market, selling first could give you an edge when negotiating the purchase of your new home.

However, selling first also carries risks. You might find yourself without a new home to move into, and the pressure to find a suitable property quickly can be overwhelming. Additionally, because you’re selling in the same market as buying, you might not get the best price for your current property.

The impact of suspensive conditions

When buying a new property before selling your existing one, the offer to purchase often includes a suspensive condition that makes the sale contingent on the sale of your current property. This condition allows the buyer to cancel the agreement if they are unable to sell their property within a specified time frame. While this approach is common, it can make your offer less attractive to sellers, who may prefer a “clean” offer with no conditions.

Buying first

If you buy before selling, you’ll need to consider the potential risks, such as owning two properties simultaneously or being forced to sell your existing property at a lower price. On the other hand, finding your dream home and securing it before selling your current property can be a huge advantage.

Ultimately, the decision to sell or buy first depends on your individual circumstances and priorities. It’s crucial to discuss your options with an experienced estate agent who can help you make an informed decision. They can guide you through the process, assess the potential risks and benefits, and provide valuable insights into market conditions.

Sometimes a seller doesn’t want to accept an offer conditional on the buyer needing to sell. There are pros and cons for the seller in this regard.

You could put yourself in a situation where you become an urgent seller of your property, having set your mind on a new property and making an offer subject to you selling.

Another option if selling before you buy, is to accept your buyer’s offer, but stipulate an increase on the transfer period from the usual three months to a more safe six months, so as to give you more time to find a new home. There could be a clause enabling you to bring forward the transfer date should you find a new home earlier.

If you’re unsure about the best approach for your situation, as there are pros and cons to both scenarios, contact Spencer at You Realty.

With expert guidance and local market knowledge, Spencer can help you navigate the complexities of buying and selling property, and help you make an informed decision based on your specific needs.

Call Spencer on 084 524 4616, or email spencer@yourealty.co.za