Downsizing is one of the most important decisions that often involves selling your current home and purchasing a smaller, more manageable property. Sometimes it is to free up equity to spend in your retirement, for a life balance to live between two cities, or to holiday around the globe! (Or possibly spending the inheritance before the kids do!).

In our weekly blog this week, we are going to touch on a question that we hear a lot..."Do we sell or buy first?"

What are the benefits, and negatives to both sides Let's explore the pros and cons of both strategies to help you make an informed decision that aligns with your own situation.

‍Selling First, Then Buying:
One approach is to sell your current home before searching for a new one. Here are some key advantages:

‍1. Financial Clarity: Selling your home first provides you with a clear understanding of the exact amount of funds available for your next purchase. With the proceeds from the sale in hand, you can better assess your budget and negotiate confidently during the buying process.

‍2. Reduced Stress: By selling your home before buying, you avoid the pressure of having two mortgages simultaneously or dealing with the uncertainty of finding a buyer after purchasing a new property. This approach helps streamline the downsizing process, allowing you to focus solely on finding your ideal new home.

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Buying First, Then Selling:
On the other hand, some downsizers prefer to secure their new property before selling their existing one. Consider the following benefits of this approach:

1. Ensured Next Home: By buying first, you secure your dream downsized property, eliminating the risk of missing out on a perfect home due to market dynamics or timing. This approach provides peace of mind, knowing that your next dwelling is secured and ready for your move.

2. Smooth Transition: Buying first allows for a more seamless transition between homes since you can take your time moving and organizing the downsizing process, without the pressure of selling your current property simultaneously. This approach affords you the time and convenience to make necessary renovations or adjustments to your new home before moving in.

What is the best approach for you? ‍

In some cases, striking a balance between selling first and buying first may be the optimal solution:

‍1. Bridging Finance: If necessary, some people choose to consider obtaining bridging finance, which provides temporary funding to cover the purchase of your new home until your existing home is sold. This option allows for a smoother transition, albeit with potential additional costs. If you need to speak to a Broker, we can recommend you to some fantastic people who can talk you through your own situation. (We do not provide financial advice).

‍2. Renting until you find what you are looking for: Another alternative is to rent a property temporarily after selling your home. This gives you the flexibility to search for your dream downsized property at a more leisurely pace while avoiding rushed decisions.

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‍Deciding whether to sell first or buy first when downsizing requires careful consideration of your individual circumstances and priorities. Selling first provides financial clarity and reduces stress, while buying first secures your dream home and allows for a smoother transition. Alternatively, you can explore options like bridging finance or temporary renting to strike a balance between the two approaches. Ultimately, consulting with a trusted real estate agent and financial advisor can help you make the best decision that suits your needs and ensures a successful downsizing journey.

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We hope you have enjoyed this week's topic, and please give our team a call to discuss the best approach for you, so you can reduce your stress levels when buying or selling, and maximise the outcome.

Yours in property,

Jake