Deciding to set yourself the task of buying a new house at the same time as selling your current house can seem daunting, but there are ways to make it happen. Before you start developing your checklist for buying and selling a house, let’s take you through some factors you may like to consider. Don’t worry, we’ll still help you develop those checklists!
What’s the current house market like?
When it comes to buying and selling houses at the same time, it’s a good idea to take the current house market into consideration, as you may find it’s more of a buyer’s market than a seller’s market, or vice versa.
If you find the current house market is more of a seller’s market, you may have a better chance at selling your house for a higher price, as there is a high demand for properties2. In a buyer’s market, you could have an easier time purchasing your new house but may find you may not get as high an offer as you would like when selling your current house2.
Regardless of what type of housing market your town is experiencing at the time you’re looking to buy and sell your house, it’s a good idea to conduct research and enlist the help of as many professional resources as possible (such as real estate agents and financial advisors)2. Educating yourself about the housing market gives you the benefit of knowing what to expect so you can adequately prepare.
Planning to buy and sell a house at the same time
One of the keys to helping you through the process of buying and selling a house at the same time is planning everything from your finances through to having a back-up plan in place.
Start setting your timeline – when do you want to have sold your current house by and when would you be hoping to have secured a new house by? Once you have decided on rough dates, this can help you solidify your plan and start looking for a new house1.
When considering your timeline, it’s also worth taking into account your financial situation. There are fees associated with buying and selling a house, so it’s important you’re aware of these and have factored them into your budget1. Keep in mind that these fees vary depending on your chosen financial institution and which real estate you choose (if you opt to have one help you sell your house)1. Don’t forget that when it comes to buying a house, you will need to ensure you have at least a 20 per cent deposit if wanting to avoid paying lenders mortgage insurance1. Queensland Country Bank can assist you with a loan for your new home* – both fixed and variable loans are available.
Evidently, your goal is most likely to ensure you buy a new house and sell your current house around the same time so your settlement dates line up. Given that there is a likely chance these dates may not line up, there are a few options you could consider as a back-up.
- Adjust settlement date: You may be able to work with your financier, real estate or buyer to adjust one of your settlement dates to ensure they line up1.
- Add a subject to sale clause: In some cases, if approved by all parties, you may be able to add a ‘subject to sale’ clause into your purchasing contract. This basically allows you to back out of the contract for a house you’re planning to purchase if the sale of your current home does not go through. Keep in mind though that adding this clause means your contract is conditional as opposed to unconditional1.
- Rent your current house back: If you sell your current house before buying another house, you may be able to negotiate with the new owners to stay in the house and rent it from them until you have purchased a new house. Obviously, this would be up to the buyers and there is nothing saying they have to agree to the terms but it is an option you could explore if needed1.
The most important thing is to ensure you are financially prepared in case you need to use one of these back-up options. You may be in the situation where you have two mortgages to pay or could be on the search for a temporary rental property while you look for your next home1. This is why planning and having some options to fall back on are good ideas!
Checklist for selling a house
Are you ready to prepare your house for sale? Before you officially list your house for sale, there are a few things you may like to consider. Start off by inspecting your house with a fine-tooth comb – look out for anything that’s broken or needs maintenance. Anything that could potentially reduce the sale price of your house is worth investigating in case it’s fixable and won’t cost a lot of money3.
Next item on the checklist for selling a house? Consider whether you will enlist the help of a real estate agent to advertise your property to the public3. Keep in mind this can be one of the more expensive aspects of selling a house, so it’s worth comparing different real estates to see which one is the most cost effective and delivers on what you need3.
When it comes to advertising your house for sale, you may like to consider whether staging is something you’re interested in. Real estate agents may ask this very question if you are opting to use one3. There are different perspectives on whether staging a home for sale is a good idea or not but, ultimately, it’s up to you. If you choose to gain help from a real estate agent, keep in mind this could incur extra costs, depending on which agency you use. If you decide to do it yourself, you may still end up spending some money on the staging so ensure you factor this into your financial situation when you start planning to sell your home3.
Checklist for buying a house
You probably already feel quite experienced when it comes to searching for a house to buy. However, it still pays to have a clear idea of what you’re looking for in a house so you can narrow down the parameters of your search.
One of the best things you can do is start off your checklist for buying a house by listing all the features you would like in your new house. Perhaps there are things about your current home that you dislike and which have influenced you to sell it3. Once you have a few features in mind, make sure you separate them into things you must have and things you could compromise on if need be.
You can then use this list of features to guide your research. Start adding filters to the websites you are using to look for houses so you get a true picture of what’s out there that meets your criteria3. Just like when you bought your first house, start going to open homes and ensure you gain financial pre-approval so you’re ready to put offers in.
Buying and selling houses at the same time
It’s certainly possible to sell your current home at the same time you buy a new one, it all just comes down to planning and timing. Fortunately, you can control the planning side of things, so ensuring you go into the process with a plan would help you greatly. Make sure you also have a back-up plan to keep yourself covered in case things don’t exactly go to plan!
*Terms and conditions of Queensland Country Bank’s Variable and Fixed Home Loans apply. View the relevant TMD’s available at queenslandcountry.bank. Normal lending criteria, terms, conditions and fees apply and are available on request.
General Advice Warning: This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information provided. In particular, you should seek independent financial advice.
Sources
1Rachel Horan, 2022, How to buy and sell a home at the same time, Savings.com.au, https://www.savings.com.au/home-loans/buying-and-selling-a-home
2Beth Braverman, 2023, How to sell your house and buy a new one at the same time, Bankrate, https://www.bankrate.com/real-estate/sell-your-house-while-buying-another/
3Ramsey Solutions, 2023, How to buy and sell a home at the same time, https://www.ramseysolutions.com/real-estate/sell-before-buying