Making the decision to sell your home and move on to the next purchase can raise questions about the order in which you buy and sell. Should you sell your home to free up finance and gauge how much you can feasibly spend on your next home, or should you buy first and then sell?

Either option is a personal decision where you must weigh up the benefits and risks that are associated and ask yourself questions such as, would we be comfortable to rent for a time while waiting to purchase? Is there maintenance that needs to be done at your home? Can you afford to upsize or downsize? Will your home sell?

Selling before buying

Choosing to sell your home before purchasing another can assist with determining the value of your home and any potential proceeds from the sale. This can help make the decision about buying your next home as you will be aware of any capital that has been gained once your home has been exchanged and any mortgages discharged.

Selling first will mean that you will also have some certainty around the sale and reduce risk before purchasing. It also eliminates the potential need for acquiring finance options like bridging loans.

The disadvantages that can present if choosing to sell first include the need to potentially live somewhere else while looking to purchase your next home and waiting for settlement on the new home.

Buying before selling

The benefits of buying before selling your current home include the certainty of knowing that you have another home to move to. This can be beneficial in a market where there is strong competition and prices are on the way up. 

This would mean that you are likely to receive more for your existing home when you choose to sell but purchase a new home before the market rises.

If you do choose this option and you need to allow space to buy your next home, talk with your agent and solicitor about a longer settlement period on the home that you are buying or the option of renting the home back for a period. This will give you more time to prepare and sell before moving to the next home and can also assist with working out the financial implications of owning a home.

Related reading: How to buy and sell a home at the same time

Thanks for reading.  Wishing you a successful day.
Want to know what your home is worth today?  Has your home doubled in price in the last 10 years? Click the link and tell us who you are so we can answer these questions and give you a snapshot look at the current market especially if you are considering selling sometime soon.

What’s happening in the market in real time? Ask Matt to explain the real time data available in our monthly publication of the Ray White NOW book.
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  • If you have a question on the local Real Estate market
  • Should you spend money on a Reno of your home before you sell
  • How to contact a Mortgage Broker

Have a chat with Matt Wineera on 0274 951 536 who is always on hand to answer your query. His advice is given freely and without obligation.

Work with Matt Wineera who lists and sells homes in the Tauranga, Mount Maunganui and Papamoa and Te Puke areas.

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