If you’re buying and selling a home on the Sunshine Coast, there are a few options you can explore. I’ve sketched out the potential paths you can take – typically, it’s advisable to buy and sell in the same market. However, this year is a bit different since the market is on the decline. It’s feasible to contemplate selling now and then purchasing later in 2023, since I’m guessing that the prices of properties would be lower.

BUYING A HOME SUBJECT TO SALE OF YOUR CURRENT HOME

When people are trying to relocate, they often wish they can purchase a new house on the condition that their current house sells first. Unfortunately, during times of a booming real estate market, this isn’t really a possibility since there is so much competition from buyers who don’t need to worry about selling. 

It’s only when the market is not doing so well, as it is right now, that this becomes a more likely option. Even then, it can still be difficult to get an offer subject to sale accepted. Sellers may expect a higher price than usual, and they want to see that your current house is being advertised and is likely to be sold in no time so you can go through the purchase.

If you intend to buy a new house on the premise that your current house sells, then it’s advisable to have the marketing of your house ready to go. That way, when you finally find the house you want to buy, you can just turn on the switch and your property is up for sale.

SELLING NOW, THEN RENTING AND BUYING LATER

In 2023 the market is heading south, so you’ve got some other options. How about selling now and renting while you search for your new place? It might mean going through more than one move, but the upside is that you can grab a good deal in 2023 as the market drops.

USING THE EQUITY IN YOUR CURRENT HOME TO BUY NOW THEN SELL

If you’re looking for the most reasonable option, getting pre-approved financing with your current residence’s equity as collateral might be the best way to go. Basically, the bank will fund your purchase of the new place right away, and when you’re done selling your existing home, you’ll be able to chip away at a good part of the mortgage of your new abode.

SELLING AND BUYING PRIOR TO SETTLEMENT

It’s very popular to put your property on the market and then start shopping for a new one, but it’s important to have an alternative plan. This can be a rushed process and you may not find something you love, so being in a rush to buy isn’t the best situation to be in.

You would need a plan B. An alternate route could be to get a rental instead. That comes with its own set of issues, though, since property managers don’t often like to do six-month leases, or lease to those planning to buy soon. You can always stay with family or even live in a campervan, but that means moving your stuff and that can be difficult to find the space for and comes with its own fees.

FINDING A HOME AND MAKING AN OFFER

As soon as you find a property you’d like to purchase, the real estate agent will be curious to know your finances. No need to tell them if you have a place to sell; just get a pre-approval from a lender and start shopping with a budget in mind. That way, you can make a sensible offer and have a manageable finance plan.

GETTING A PRE-APPROVAL FROM A MORTGAGE BROKER

I come across numerous buyers who claim they have pre-approval for finance, only to discover that they don’t actually have it, and what happened is their broker just said they “should be alright” to borrow X. Then the bank does their assessments and the buyer has a few issues and finance isn’t approved. What many brokers won’t do is obtain a pre-approval since it takes a lot of effort and expires after 12 weeks, and they only get compensated if the buyer purchases.

Therefore, many lazy brokers recommend buyers to go look for the house they want and then submit their application. Unfortunately, many mortgage brokers ruin deals for buyers due to this. Chris Wilson from scfsolutions.com.au can arrange a pre-approval for you and he’ll do it for free. He is great to work with – chris@scfsolutions.com.au.

7, 14 AND 21 DAYS FINANCE?

If a buyer informs me they’ve got a top-notch broker and then needs 21 days of finance as the banks are slow, then they don’t actually have a great broker. Great brokers I’m aware of guarantee that they get a genuine pre-approval so the buyer can easily do 7 days of finance. 

It’s very hard for a seller to approve an offer with 21 days of finance because they would have to take the property off the market for three weeks while we all figure out if they can get the money or not. Too many times I’ve seen the finance didn’t get approved at day 21 or they asked for an extension or need to terminate the sales contract.

HOW CAN ASSET AGENTS HELP?

I talk to many buyers who tell me they have no budget in mind. It’s hard to go house hunting when you don’t really know what you can comfortably afford. If you have a home to sell so you can re buy the best place to start is with an appraisal. Asset Agents offer these for free for any Sunshine Coast property and can give you a good indication of what your current property may sell for. This would then allow you to create what would be your preferred budget on your next house. This along with having a pre approval on finance will put you in the perfect position to go house hunting.