Currently, the Brisbane real estate market is firing on all cylinders – everyone knows it. It’s a seller’s market, and if you own a property, you might just think the market is geared towards you.
Well, it is on one front. If you did decide to sell, you’re most likely going to sell your home for far more than you could have ever imagined. Some of the sales we’ve seen lately defy belief, and we’re confident you’re being harassed by plenty of real estate agents who are trying to convince you to sell.
That’s how real estate agents earn their money and pay for their new Mercedes Benz. They’re not there to represent your best interests – a quick sale is what they’re chasing. They know the current market conditions mean they can sell properties for far more than they traditionally can and with next to no effort. Most listings sell after one open home or before even going to market.
We’ve seen many clients get convinced to sell quickly to cash in on the current boom only to find themselves selling after a few days on the market and then not having anywhere to go. Do not listen to real estate agents, and don’t be easily convinced to list your property before you’ve got a strategy in place.
You’re selling in a booming market, but remember, you need to buy into it as well!
There are a few ways to deal with this and minimise the risks of you and your family ending up homeless before Christmas.
Strategy One – Sell now and hope for the best
The first is to sell and then deal with the situation as it forms. You might be incredibly lucky and secure something that overlaps with your settlement and you’re into your new home seamlessly.
This might happen, but the odds are not stacked in your favour.
Remember all those people who came to your open home and started throwing ridiculous figures for your place – well, that might be you!
Any profit you’ve gained will be eaten up by having to pay the market premium everyone else is paying. You’ll either secure your property or you’ll be looking for weeks, maybe months.
That 90-day settlement you might have negotiated with your buyer is up, and suddenly you’ve got a family and no where to move to. Your only options might be to move in with friends and family until you find something or rent (and trust us, the rental market is probably worse).
Strategy Two – Buy a property before you sell
This is a good strategy in a seller’s market. Conduct your research on recent comparable sales in the area and estimate what your property could potentially sell for on the low and high end. Currently, properties are selling very quickly, so should you purchase a property, and then list, the odds are your home will sell quickly and for a fairly good price.
It is important you talk with your home finance specialist about whether or not this is a viable option for you or not. In many instances, sellers will expect very tight finance, build/pest, and settlement terms – adopting this approach takes planning and perfect execution.
This could also be applied to renting – find a rental property first, secure it, and once you’ve done so, list your property.
Strategy Three – Keep your existing property
In the current market, it is worth looking into whether or not you can unlock the equity in your existing property to purchase your next one. In many instances, you maybe able to secure your ideal property. Once you have secured the property, you could consider selling it, or even adding it to your rental portfolio. Either way, you avoid the pain, suffering, and stress of potentially being homeless.
Again, talking to your home finance specialist is integral in understanding if this option is feasible. TO
Strategy Three – Move in with friends or family
One of the simplest options, and a great one if you are able to do it, is move in with friends or family after the sale. Store all of your items and settle in for the house hunt. You’ll avoid paying rent (and becoming homeless), and you can take your time in navigating the home market. You’ll also have a clear idea of your budget and can set your expectations realistically.
There are plenty of ways you can manage your property journey, and these are just a few. It is still worth sitting down with your finance professional and talking about your options based on your specific scenario.