5 tips to help upgrade your home in a strong market
You know how some (lucky) people time everything perfectly in life? But when you go to do something, the timing doesn’t feel like it’s in your favour?
So, you’ve decided to upgrade your home, whether it’s because you need more space or want to move closer to work or family, and you need to sell before you may buy another. From a selling point-of-view – great! You’ll hopefully get a bit more for your home. But from a buying point-of-view – it may seem a bit trickier as the market moves so quickly.
Let’s look at five tips you could consider trying that might help to make upgrading your home in a strong market a bit easier.
1. Organise an appraisal for your current home
First things first – find out how much your house is worth!
Unlike in the board game Monopoly, house prices may fluctuate quickly. If it’s a seller’s market you may find your house’s value increases, while if it’s a buyer’s market the value may decrease.
Much like how you would usually get a few quotes from tradies before undertaking some work, consider asking multiple real estate agents in your local area for a house appraisal. Local agents should be aware of how quickly certain properties in the area are selling and whether your house is the type of property that’s in demand from buyers.
An appraisal should help give you a ballpark idea of what your home may be worth if you decide to put it on the market.
2. Consider an auction
Time to live out the excitement you see in the TV shows!
Auctions could assist you in getting the most you possibly could for your house, especially if there are multiple interested buyers who may bid against each other.
But, if you need more flexibility around sales terms, such as settlement length, then you may find selling by private treaty helps you tick those boxes. It’s about weighing up what’s most important – a slightly higher price or more time to find somewhere new to live?
3. Ask for a longer settlement
It’s not always easy to have a new home lined up to buy – or move into – straight away once your house is sold. In these scenarios, it’s worth asking for a longer settlement period on your property.
Remember, if you’re buying another house then the current owners may also ask for a longer settlement so you could end up in a domino effect. Since it’s possible to get longer settlement periods – such as four months – it’s better to have it all organised early on so everyone knows where they stand.
4. Look at bridging loans
You may be thinking about selling then stumble upon your dream property. But what happens if you haven’t already sold and want to secure your new home?
Introducing bridging loans. They usually come with higher interest rates but may be a useful way to secure a new home while in the process of selling yours. Be sure to speak to your mortgage broker for personalised advice regarding these types of loans.
5. Obtain pre-approval
Getting your ducks in a row may take time, so obtaining pre-approval may allow you to move quickly to put in an offer when you find your next home.
A pre-approval plus an appraisal of your current home should help you figure out how much you may be able to afford to spend on your next home.
It’s worth organising a chat with your home loan specialist to discuss obtaining pre-approval so you’re prepared to put in an offer when your dream home becomes available.
Considering upgrading your home? Getting your finance organised early on could help you achieve your goal. If you need any personalised home loan advice, be sure to contact Pania of ASCollective.
Disclaimer: This is general information only and is subject to change at any time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.