Rising Tide Blog

Upgrading your family home is an exciting yet complex journey. Many of our clients face a common dilemma: Should they place offers on new properties while still holding onto their existing homes? In this blog, we’ll explore the pros and cons of different approaches and shed light on the best strategy for upgrading your home.

The Dilemma: Offers Subject to Sale

Imagine this scenario: You’ve found your dream home but are not yet ready to sell your current property. You fear missing out on the perfect house if you sell first and then search for a new one. So, you decide to make an offer on the new property, subject to the sale of your existing home. Sounds reasonable, right?

Unfortunately, the reality is that offers subject to sale are rarely accepted. Sellers prefer buyers who are ready to proceed with contracts that are not subject to multiple conditions. 

And here’s where the challenge lies: servicing the hold and buy option becomes difficult. Lenders need assurance that you can afford both mortgages simultaneously, which can be tricky.

The Solution: Selling First with a Long Settlement

Let’s consider a more thoughtful approach that minimises stress and maximises your chances of success. Here’s why selling your current home first is often the best and safest option:

1. Financial Clarity: By selling your existing property, you’ll know exactly how much equity you have to play with. This clarity empowers you during negotiations and ensures you’re well-prepared for the next step.
2. Reduced Risk: Selling first eliminates the risk of being caught in a chain of transactions. You won’t find yourself desperately searching for a buyer while simultaneously trying to secure your dream home.
3. Long Settlement: When selling, negotiate an extended settlement period. This gives you ample time to find your next property without rushing, and you won’t feel pressured to settle for less than what you truly want.
4. Flexibility: Add a clause to the contract allowing for settlement to be brought forward by mutual agreement. If you find your dream home sooner, you can adjust the settlement date as needed.
   

Conclusion

We encourage you to take the safest route. Selling first provides financial clarity, reduces risk, and allows you to upgrade your home without unnecessary stress. Let’s work together to seamlessly transition from your current property to your dream home. Remember, informed decisions lead to successful outcomes!

Are you looking for financial planners who truly invest in you? Get in touch to chat or call us to know how we can help!