(Jenman.com.au) by Peter O’Malley
Many home-owners face a similar dilemma. When it’s time to make a move, they don’t know whether to buy first or sell first. If they sell first, it may be hard to find another suitable property at an affordable price. If they buy first, it may put them under pressure when selling their current home.
And, high pressure often means a lower price. Just see what’s happening at auctions at the moment. Financially pressured and bleeding sellers mean bargains for buyers. In recent years, buying first has become common. A healthy economic environment has meant that sellers can usually sell for a good price in a short time. Easy-to-get financial products (such as bridging finance) almost encouraged people to buy first.
Although buying first has always been risky, the risk for is now extreme. Property stock levels have swelled and sales volumes are well down. Almost every real estate market in the country is struggling. It’s volatile and unpredictable.
The family home is an emotional asset. This is why many sellers tend to overprice their homes. They often make it worse by rejecting early offers, without realising that these offers may be better offers than they’ll ever see again. More…..