Successful buying and selling of property revolves around timing. Keep in mind that the longer your home is on the market, the less attractive it becomes to home buyers. Although you cannot control the market and other inevitable circumstances, you can nevertheless control other factors like pricing and marketing, which will definitely affect the probability of sale.
Here are 5 vital tips to remember in buying a new home and selling your current one.
Sell Your Current Home First
Unless circumstances dictate, you should sell your current home first before buying a new one. Otherwise, the wrong timing of the settlement of your new home may force you to sell your current home “at all costs” even if lower than market value. Also, under some market conditions, properties sell so quickly that sellers won’t accept offers and contracts that contain contingency clauses, i.e., that the purchase of your new home is subject to the sale of your current home. These conditions turn-off home sellers, and in dealing in the fast-paced property market, you will most likely miss out on the new home you’re eyeing.
Do Your Pricing Homework
Pricing can make or break the success of selling your home. An overpriced house will likely attract less prospective buyers, thus, delay the sale while an under priced house, although may draw a fast sale, will definitely result in loss of profits. There is no hard-and-fast rule in pricing a property. It’s actually a marriage of actual cost, sentimental value, and supply and demand.
Never jump at the first financial institution you come across with. Even if its offer may be tempting, you’ll never know if it’s the best financial institution for you or if its offered loan product is the most excellent without making a little loan shopping.
Approach several financial institutions and obtain information such as interest rates and other terms and conditions like loan period, fees and costs, down payments and private mortgage insurance. Compare such rates and terms of one lender from the other. In choosing a loan, pick one with conditions that best suit your situation. Negotiate for the best deal so that your loan should bear the lowest interest rate and settlement costs.
Coordinate Settlements to Minimize Expenses
As a seller of your current home and as a buyer of a new home at the same time, you take on dual roles that are opposite in the spectrum. One of these roles will likely be at a disadvantage since the property market could lean in favour of the seller and not the buyer, and vice versa. To protect the interest of your weaker role, you need to coordinate the settlements. Before putting your current house on the market and agreeing to buying a new house, it is a must to investigate the prices of the houses in both the communities where you’ll be buying and selling. You need to compare the prices since the idea is for you to sell your current home high and buy your new home low. With an estimation of the gap between the prices of both houses, you would be able to work on your finances including current loan repayments.
You can contact me to get an idea of the estimated price of your current home and prospect homes to buy within Perth. Should you choose us to help you with your buying and selling transactions, we could coordinate the settlements to minimize your expenses.
In real estate sales, first impressions last. Selling a home is like entering a beauty contest – the best looking home gets the highest price and sells the fastest. So, before receiving prospective buyers into your home, make sure it is spotless and screams “buy me”.
In improving your home to make it more appealing to home buyers, preparation is the key. So begin by inspecting your home, and if you find some areas that needs some work on, have it completed before you start to market it. In preparing your home, details are absolutely vital. Why suffer the indignity and shock that your home doesn’t pass Building and Pest Inspections, and risk a contract falling over? Remember that a well-kept house is additional assurance to home buyers of your home’s quality, thus, also boost price.
If I can help any further with any of the above tips please feel free to contact me any time.