SHOULD YOU BUY THEN SELL, OR SELL THEN BUY?

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Episode Transcript

Speaker 1 (00:00):
Okay, we're asking the question this morning, and I'm sure
this is a question many people around Canberra have asked,
should you sell first and then buy or buy first
and then sell? Now I believe this came off the
back of a post you saw.

Speaker 2 (00:12):
You're absolutely right, this is not an uncommon question, but
something came up on LinkedIn through the Weekend's just like,
oh yes that and this is where content ideas come from.
Not just they come from everywhere, but yes, because this
is like so much can go wrong huh, but you
can also get it right as well.

Speaker 1 (00:29):
Yep, and you reliant on this person, that person and
chain of people.

Speaker 2 (00:33):
Right, it's a house of cards.

Speaker 1 (00:35):
Ah, it is well the man who can hopefully answer
this question for us and run through the different scenario.
Steve Lowe directed the agent team camera. Steve, good morning,
good morning, now thanks for joining us again. Look, when
it comes to selling first and then buying or buying
first and selling, what's the most important thing people need
to consider?

Speaker 3 (00:56):
A well one has a huge financialist and that is
if you go and buy a property first before you've
sold yours, and yours doesn't sell for the price you
anticipate or takes a much longer to sell. Then you
put yourself in a really difficult financial situation. And I've
seen people that have expected their house to sell to

(01:17):
say two million, sell for only one point six million.
That's the four hundred thousand dollars short for in the
overall transaction. That's pretty scary.

Speaker 1 (01:26):
Yeah, But what if, though, you buy first? But then sorry, sorry,
if you sell first, I'm confusing myself. Now, if you
sell first, then you're under time pressure to find the
right place.

Speaker 3 (01:41):
Personally, I'd rather time pressure than financial pressure. It really
comes down to what type of pressure you prefer. But
I have this conversation all day, every day, and my
advice to my sellers is always to sell first, then buy.
Nobody I've ever sold for has ever been homeless just yet.
And I can give you so much examples of people
that are really anxious about that. They took the advice.

(02:03):
They sold first, and then you know, all of a sudden,
their ideal property is on the market and they transact
it very quickly during the longest settlement period that we
put in place for those that are going to sell first,
and so that sort of de risks the entire situation
for you. The risk is if you don't find somewhere
within the ninety eighty settlement period you can go and
bunk in with couch surf to get a short term

(02:24):
air b and b maybe even a short term rental.

Speaker 2 (02:29):
Eight kids with me, Yes, So mate, what's the biggest
mistake that you see people making?

Speaker 3 (02:36):
The biggest mistake is that quite often sellers will overestimate
what they anticipate to get for their property and underestimate
how long it's going to potentially take to sell. So
properties that are overpriced do take longer to sell. And
so that's that combination that you're not looking for, Like
you know, that's the worst combination that you're looking for
if you're going to go and buy first. So yeah,
you have to be really conservative and do some really

(02:58):
conservative figures and timelines if you are going to go
and buy it first, and make sure that you can
handle a worst case scenario.

Speaker 1 (03:08):
But Steve it kind of also depends on what the
market is doing at that point in time, right, Because
I'm happy to be transparent about this and say the
place we're living in now, we bought first before we
sold where we were living. However, because that was in
the peak COVID craziness. We had the confidence at the
time that our place would sell just because of what

(03:28):
was going on in the market at that point in time.

Speaker 2 (03:30):
So you're saying market market conditions should.

Speaker 1 (03:33):
Prevail, Well, not necessarily, but is a factant. Yeah.

Speaker 3 (03:37):
Yeah, Well, so not everybody wants to go and sell
first and then buy, and so quite often they will
buy first. But it depends on the type of property
and the market. So if I'm at a house that
I know that I can sell within twenty one days
because we've done it a thousand times, then I'd say
to him, look, you is your that situation is very

(03:57):
low risk for you. It still has its risks, you know,
everything that we transact in this particular area. So as
quickly it's a pretty standard three bed to BA two car,
a lot of demand for that, it's going to be
low risk for you. So let's just help you buy
something else and then we'll get a longest selone on
that one. Like we do a really good strategic timeline
planning session with our clients. Then that way they've got
both options available to them and they can con chose

(04:19):
which one they'd like to use.

Speaker 1 (04:21):
Yeah, that's so important. That would make the world of difference. Well, Steve,
thanks so much, very wise words from you. As always
this morning.

Speaker 3 (04:28):
We must be getting old or something.

Speaker 1 (04:29):
Yeah, oh goodness me. Well, thank you so much for that.
As always, that was great. Have a good weekend you too.
Thank you Steve Low, who's director of the agent team
Camera