How to Buy and Sell in the Same Market?

The concept of purchasing first is the most ideal to most homeowners, and there are a couple of ways of doing this.

• Using a bridging loan

The bridging loan would get you through the overlap weeks that the two contracts are not aligned - the aim would be to have your house onto the market as quickly as possible after finding your new property and to find a buyer with solid contract terms. You would need to have organised this with your bank or broker before the process as your offer on the new home would be a finance one and would not be dependent on the sale of your existing property in the short term.

The benefit of this is the ability to secure your next property

Not everyone is in a position to carry a bridging loan or want to carry two loans at once for an unspecified time and for these people the subject sale method allows them to purchase first.

• Subject to sale

 When the market is running at a Goldilocks speed (not too fast - not too slow) it is a great time to make a subject sale offer.

Before you do so you will need to be know that your house will sell in a reasonable amount of time, that you have the correct pricing advice and ensure that you are ready to go to market - I recommend having photos done before hand so as soon as you find the perfect place you can be on the market the next day. Often times you will need to make an offer that is higher than the cash and finance offers on the table to make up for the risk that the buyer is taking accepting your offer and putting their expensive sales campaign on hold - otherwise, they will go for an easier offer with either cash or verified finance.

• Selling first.

Sometimes people are not able to or want to carry a bridging loan, and the type of property they would like to purchase is simply too popular for the sellers to consider a subject sale offer. The answer to this is to sell your property first with a contract that has extra time built into it.

• The time would be slotted in after all conditions of your purchaser are met and the contract is deemed unconditional. It is a good idea to have an idea of the amount of time you believe that you will need to both find a property and factor in the settlement process.

• Once you have an unconditional offer on your property it is safe to make an offer on a new property subject to successful settlement of your home. The settlement dates will be made to align so that the funds for one will pay for the other.

If you ever have any questions about joining the property market - Just ask me! - Louise Simonette x