Buying and selling at the same time is possible, it is exciting and daunting experience. Balancing the logistics and managing the process, the finances and making it all come together requires careful planning and well thought out decision making.
Simple answer to can you balance buying and selling at the same time? Yes, you can buy and sell at the same time, it is best to start the sale process and put your property on the market before looking to lock in any purchase to minimise risk. When preparing your sale contract with your conveyancer it is advisable to have a long settlement i.e. 12 weeks with a variable clause to be able to serve notice to bring this date forward to align with your purchase once your sale is binding and you have found your new home to buy.
If you do decide to buy before you sell, you can look at the option of bridging finance, as you always need a backup plan in case you are unable to sell at the same time to avoid any loss of deposit or likely litigation if you fail to complete your purchase contract. If you do choose this option, it does bring the risk of two mortgages and can then put you under financial stress where you feel pressured to do a quick sale and may not get the price you were hoping for on your sale. There are pros and cons of buying before you sell that you can take the time to find the right home. In some cases you may be able to negotiate a “subject to sale clause” but it is up to the vendor who you are buying off to accept this.
It is best to talk to banker or broker to ensure your current financial situation can complete the transaction of selling and buying to ensure you will be eligible and what preferences you have in respect to a loan if finance is required to complete the buying and selling process. Costs you will need to consider when completing such a process will be agents commission, legal costs, moving expenses, stamp duty on your purchase.
There are multiple benefits of buying and selling at the same time which include however not limited to, the ability to eliminate multiple loans, moving/ storage costs and only having to move once, all variable depending on your situation.
Our job is to make it a smooth process for both transactions. We can help align and guide you with completing a simultaneous settlement, where you move in on the same day you’re moving out. This can be stressful, so our best advice would be to be organised, have good time management and working with not only us but also your removalist to ensure they are there on time and complete the moving process for you. Some options you could look into if you’re aligning your properties could be requesting early access, to move in under license or access to store belonging, this will help eliminate the stress on the day of settlement.
Timing is crucial when undertaking simultaneous settlements, as your conveyancer we will try eliminate this stress by working closely with your banker/broker to ensure your bank is ready and your real estate agent to ensure negotiations are in place to avoid any delays or issues in your transactions. It is our job to ensure all legal obligations are met for both your sale and purchase to protect your interests and eliminate any risks or costs associated.
Before you take this step forward feel free to contact our office so we can run over all your questions and concerns before you take the leap.