The process for most people selling their\u00a0home is normally a simple one: sell a home<\/a>, buy a new one.<\/strong><\/p>\n But what happens when you want to flip the script and buy your new home BEFORE you\u2019ve sold your current one?<\/p>\n Here are a few things you should consider.<\/p>\n The biggest sticking point in your quest to buy before selling is likely to be the finance.<\/p>\n A bridging loan is a loan from your bank or lender that covers any costs associated with the new property purchase until the money comes through once you\u2019ve sold your old one.<\/p>\n FirstPoint Mortgage<\/a> Brokers director Greg Collins says you should visit your broker or bank to get approval for a bridging loan well before you buy.<\/p>\n \u201cThis will allow you to complete the purchase of the new property plus associated costs like stamp duty while giving you up to six months to sell your current (home).<\/p>\n \u201cPre-approvals for bridging finance and home loans<\/a> is an absolute must. It\u2019s quick, free and helps remove the pressure to sell your existing home too quickly when a new home has already been purchased, possibly avoiding being vulnerable to a lower than anticipated price being accepted,\u201d Collins says.<\/span><\/p>\n <\/strong>If you really want to buy before you sell, often it\u2019ll be because your dream house has hit the market and you can\u2019t afford to wait.<\/p>\n \u00a0<\/p>\n But being in a position to act quickly means having everything ready to go at a moment\u2019s notice, according to Sydney\u2019s Luschwitz Real Estate<\/a> director Mark Blake.<\/p>\n \u201cWhen I say \u2018ready to go\u2019, you\u2019ve got to make sure everything in your house is ready.<\/p>\n \u201cYou\u2019ve got your pool certification, you\u2019ve got your compliance certificates, contract, everything all 100 %\u00a0ready to go, so nothing\u2019s left to chance. When people slip up it\u2019s usually down to it taking far longer than anticipated to\u00a0get\u00a0everything together<\/span>. Time passes quickly and they can lose some momentum,\u201d Blake says.<\/span><\/p>\n Make sure you get a realistic valuation on your current home before purchasing a new one. Picture: Getty<\/p>\n<\/div>\n If ever there was a worst possible time for an agent to give you an overinflated estimate of your property\u2019s value, this is it.<\/p>\n You don\u2019t want to splash out on a new home based on advice that your current house will fetch $1 million-plus, and then find it only reaches $900,000 at auction.<\/p>\n Blake says many sellers are caught out with a significant shortfall because their agent pumped up the potential price in order to secure the listing<\/a>.<\/p>\n \u201cIt happens all the time,\u201d\u00a0Blake says.<\/span><\/p>\n \u201cMake sure you have a reputable agent or valuer give a real price on the house \u2013\u00a0not an inflated one.<\/span><\/p>\n \u201cA lot of agents are doing everything they can to get the business, so they\u2019ll often tend to over-inflate the price. Taking into consideration that the market may be moving forward, they\u2019ll put 15% above what it\u2019s really worth in the hope that by the time it comes onto the market the market will catch up and they\u2019ll sell it. But that\u2019s starting to wane now,\u201d Blake says.<\/span><\/p>\n After buying your new home, give yourself some room to breathe while you sell your old one by locking in an extended settlement, Collins advises.<\/p>\n \u201cNegotiate an extended settlement for as long as possible on the purchase property; 12 to 16 weeks is not that uncommon while selling your property<\/a>.<\/p>\n \u201cThe longer you can delay the clock ticking on a bridging loan, the better,\u201d he says.<\/span><\/p>\n
\n <\/p><\/div>\n [ad_2]Seek pre-approvals & a bridging loan<\/h2>\n
This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.<\/i><\/span><\/strong><\/h6>\n
Be ready to sell<\/h2>\n
Get a realistic value<\/h2>\n
![\"inspection\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2016\/11\/14170601\/inspection_agent_article_getty-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nNegotiate an extended settlement<\/h2>\n
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Realestate.com.au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"