If you found this blog post, it means that you may be looking for an answer to that same question. You’re not alone. While a definite answer hardly applies to everyone, knowing as much about the factors that lead to a sound decision is your best route. We’ll help you do that through this post.
Uncover and understand your risk tolerance
There is always a risk when selling and buying a property. If you’re a risk-taker, buying first may suit you well. If you’re cautious, selling first may save you. Either way, there are pros and cons for both.
The uncertainty usually centres around money. It is true; most people will use the proceeds of their property’s sale to buy a new home. Rightsizers or downsizers, you will also want to cash in and give yourself some spare cash to enjoy retirement with. What if you bought too early? What if you sold too late? A foresight into these questions will help you understand what you’re comfortable doing.
In the end, always remember that whether or not you intend to buy or to sell first, the risk should be properly assessed with you and your professionals ‘brains trust’.
For one, the property market conditions affect property prices so you will need to find a trusted agent. And how much can you afford and how to do it? You will need to find a trusted financial planner and possibly a mortgage broker if a bridging loan is required.
Think about supply and demand
What do you know about the current housing supply in your target location? If you’re rightsizing to a retirement village, you may not need to worry about space. But if you’re moving to live closer to your family or your new home and/or new location, knowledge of the supply market will help you decide. If supply is abundant, you can sell your home first. If the supply is short in your target location, you should buy first.
The demand for housing in your existing home area determines how soon you can potentially sell your home. You can then sell and then buy or vice versa. To assist the speed and efficiency of your sale, make sure your property is dressed for sale success.
Then, you have to make sure that the moment your house gets sold, you have somewhere to go.
To get some help ensuring your property and all your possessions are in tip-top shape, please refer to my book, Rightsize Your Home: The Empty Nester’s Guide to a Stress-Free Downsize
At this point, you may already have a fair idea about what your next step will be. But before finalising your decision, you also need to be aware of the pros and cons of buying before selling and selling before buying.