Changing Properties: Should You Buy Or Sell First?
There has been a shift in the attitudes of buyers and sellers in Sydney’s East to that eternal question: buy first or sell first?
This changing sentiment reflects the reality of Sydney’s broader property market, where changes to banking regulations and other factors are having a slowing effect.
But there’s still good competition in the Eastern Suburbs property market, and demand continues to outstrip supply in this hugely popular, established area.
So, with that in mind, which approach should you take if you’re looking to move on to a new home in our part of the world?
To buy or sell first?
Right now, we’re observing the market slowly shifting from a mentality of “buy first” to “sell first”. In fact, many vendors are choosing to sell their homes before they’ve even really started looking for their next property.
Just a year or two ago, when the property market was rising daily, this would probably not have been a smart tactic. It was important to secure a property before selling, or risk being priced out of the market altogether.
Today’s more balanced market has given everyone breathing space, allowing upgraders and downsizers more time to make a considered move.
More control meets greater security
The current shift in the market means that selling first no longer usually carries the same risk it once did.
Vendors who sell first in Sydney’s East can expect a decent sale price, so long as they target the right buyers and have a realistic view of where the market is at.
After all, while the Eastern Suburbs property market may have slowed like the rest of Sydney’s, the impact here has not been as forceful as in many parts of the city. We’re still routinely seeing good prices being achieved and even record sales.For instance, we broke the Centennial Park record with a $16 million sale in April 2018, and in May 2018 we set the highest per square metre rate for Paddington with the sale of 146 Sutherland Street.
We’ve also seen a rise in off-market sales again this year – an indication that there is strong competition around.
One of the main differences compared to a year ago though is the speed at which decisions are being made. Buyers are often taking longer to offer and negotiate a deal, and a little more patience is required.
But with less heat in the market, vendors who plan to sell first and then buy have the time they need to assess their options and find a home in the area they truly want. They also then have the clarity and confidence that comes from knowing exactly how much money they have to spend.
Should you buy first or sell first?
Regardless of when you plan to make your move, if you’re grappling with the question of whether to buy first or sell first there are several key questions you should always way up. These include:
- Is it a buyers or sellers market? As a general rule of thumb in a buyers market you may want to sell first, and in a sellers market you may want to buy first.
- Will you be buying and selling in the same market? When answering this question always consider both geography and timing.
- Can you afford to fund two properties at the one time? The cost of bridging finance or two mortgages can be too much for many.
- Does the property you are selling have any features (good or bad) that make it difficult to gauge its true value? If so, selling first will give you certainty on your budget.
Ultimately, whether you decide to buy first or sell first is a personal decision, best made by weighing up your circumstances, finances and appetite for risk.
A good real estate agent should always be able to guide you to the right answer in your circumstances by providing unbiased and intelligent advice.