Need to move? Should you buy or sell first?

It’s time to sell, but should you put a deposit on a new place first so you know where you’re going, or sell and then take your time finding somewhere else to live? 

Almost every home seller encounters this problem, and while there’s no one-size-fits all answer, here is some info to help you decide: 

The case for buying before you sell

When you buy first, you lock in the home you want before someone else does. If you find a great place in Norman Gardens, The Range, Wandal, or another popular suburb in Rockhampton, don’t wait too long, as it will likely sell quickly (usually within a matter of weeks). For this reason, it makes sense to buy before you sell if you notice your ideal place up for sale. 

However, this comes with pressure. Once you own two properties, you’ll need to sell your current home fast to avoid paying for both places at once.

Benefits of buying first:

• Certainty: you’ll secure the new property and won’t have to compete with buyers and make decisions in a hurry later on.
• You won’t have to move into temporary accommodation if you can’t find a place between selling your home and settling on the deal. 
• If housing stock is tight, as it is in many parts of Rockhampton right now, you reduce the risk of missing out on your ideal place.
   

Challenges of buying first:

• Financial strain: holding two mortgages means double payments, interest, council rates and maintenance, until your sale is finalised.
• If you overcommit, you might be forced to sell under less favourable conditions, in terms of price or timing, just to relieve cash flow.
   

Buying first works best in an active market, especially if you have a quality family home that is priced well and in a good location. Talk to your agent about how quickly they believe you can sell before you make a decision. 

We often see people buying before they sell because they have found their dream place and don’t want to risk missing out. This puts the pressure on for a fast sale, but we can always do everything we can to make it happen! 

The case for selling first

Sell first, and you will avoid the danger of double costs, but there are risks as well. The main one is finding a new place you love in a short time. 

Benefits of selling first:

• Financial clarity: Once your current home is sold, you know exactly how much you have available to spend on your next purchase.
• You will avoid paying for two properties at once.
• Flexibility: You may choose to rent for a temporary period. That buys you time to find the right home instead of rushing into something that doesn’t meet your needs.

Challenges of selling first:

• You might feel pressure to settle on a new property quickly, perhaps compromising on location, style or features.
• Temporary living arrangements can be inconvenient, costly or disruptive.
• Market conditions may change while you search, meaning prices or interest rates shift against you.
   

Selling first is a good strategy if there are plenty of suitable properties to buy in your preferred location or you can commit to renting for a few months. 

Workarounds & hybrid strategies

Fortunately, there are ways to reduce the risks whichever route you go.

• If you buy first, consider a bridging loan. This is a short-term loan that helps you finance both properties simultaneously until your current home sells. Breakeven costs may be higher, but they offer breathing room.

• If you sell first, arranging for a short-term rental or staying with family gives you time to shop around without a rush. You avoid being “homeless” while waiting for the right house.
   

Ready to make a move?

Buy first or sell first… the strategy you choose will depend on your financial situation, the rate at which homes are selling in your area, and how particular you are about what you want next.

If you’re thinking of selling your home in Central Queensland and buying a new place, talk to The Agency CQ for the advice of a local property expert. We understand the market in Rockhampton and the Capricorn Coast and can help you choose a strategy that balances risk, timeframe and cost.