Do you sell your own home first before buying another or do you buy first then sell?
I have no idea.
Dh and I have our home (with a mortgage) and we want to sell and buy another home. We are looking at the moment but our house isnt for sale yet.
If we see something we like do we need a deposit (if so, how much) as we actually dont have a deposit (unless we sell ours first...lol)
I am too nervous about selling our home until we find something we love first, if that makes sense!
+ Reply to Thread
Results 1 to 10 of 28
02-03-2012 19:30 #1
Selling and buying, (homes) in which order?
02-03-2012 19:40 #2
We sold our house first. Downside was having to stay between my sister's and my parents' house whilst waiting for the house we bought to settle.
I would put the house on the market and wait to buy. Having to pay 2 mortgages is not fun.
02-03-2012 19:44 #3-
- Join Date
- Mar 2010
Hi, we are going thru the same thing. We are looking to sell our home too. When we asked about which comes first, we were told to sell first and use the deposit we get for our house to put a deposit on the house we want buy. I would think that you ask for a longer settlement to give you time to look, and always sign the contract with 'Subject to finance' in case the sale of your house falls through. But I would be interested to see if this info I was given is correct by what anyone else may suggest for you.
02-03-2012 19:51 #4
So if we sell our home and during settlement (of our home) put a deposit onto another home, write "Subject to finance" in case the sale of our home falls through OR if the banks give us trouble for whatever reason!?
We are looking at house tomorrow, if we like it we will put ours on the market (after we talk to a broker).
02-03-2012 19:51 #5
Once you have chosen a new property you can make a contract offer with a deposit of your choosing (could be as little as $500). As part of the contract you would generally have clauses allowing the contract to be 'subject to finance' and 'subject to building & pest inspection'. As you need to sell and settle on your own home you can also add a clause 'subject to sale of [insert address].
Obviously these terms and deposit amount have to be accepted by the seller but that would generally be the way things happen.
Let me know if you have any other questions.
02-03-2012 20:00 #6
So if we really like it and the broker says we can get a loan, we might be able to sign and buy "Subject to finance and the sale of our home" (by set date?) then if our home sells, use that deposit to secure it?
02-03-2012 20:07 #7
OP, if you sell before you buy then you have the luxury if knowing exactly how much you can spend. And if you wait until settlement, you also have the money as well. Downside is temporary living arrangements while you find somewhere to buy. If you buy before you sell you're taking a punt on guessing what your place will sell for. And if settlements don't line up, you'd be paying 2 mortgages which isn't ideal.
Best case scenario is you sell, get the deposit released from the buyer (a section 27 in Vic) and use that as your deposit. That takes a month to get released. You'd try & get a long settlement as well to give you time to look. If you find somewhere you try & get settlements to align. We've done it twice with settlements on the same day & it's worked out great.
02-03-2012 20:07 #8
That's right - there is usually a set date that subject to sale clause abided by.
Finance & building and pest are usually on 14 day terms.
If you are buying anything in a complex with a body corporate you should also include a clause subject to satisfactory search of body corporate records.
As for the deposit, your broker may be able to arrange a bank guarantee in place of a cash deposit otherwise depending on how flexible the seller is you may be able to get away with no deposit at all.
Hope that makes sense!
02-03-2012 20:15 #9Senior Member
- Join Date
- Jan 2008
I work in Conveyancing but in NSW so it may be different to Melbourne but what you need to do is go and see the bank and tell them what you plan to do. They should be able to give you a pre-approval for the new place.
Then you list your house for sale. Onces it has "exchanged" which means locked in and a deposit has been paid by the purchasers to the real estate agent it is usually about 6 weeks until settlement (you could stipulate a longer settlement time if you want). If you found a house to buy at the same time you could exchange both the sale and purchase on the same day which would then mean they would settle on the same day, you can even stipulate an exact settlement date in each contract.
For the deposit, if you are using the sale proceeds, you could use the deposit from your sale if the purchaser allows it or you could use a "deposit guarantee bond" which is issued by the bank and is a certificate to say you will have the money on settlement for both the deposit and remainder of the money.
The best thing to do is ring a conveyancer or solicitor, they can advise you on how Melbourne does things and if you ask for a quote the person quoting will explain the process which will cost you nothing.
02-03-2012 20:16 #10Senior Member
- Join Date
- Mar 2008
You can get a deposit bond from you bank based on your current property if needs be. I dont think that can't be more than 10% though?
If you are buying somewhere else before your existing house has sold you will need to consider things like stamp duty and conveyancing costs.
In terms of mortgages you can get a bridging loan but they are ruinously expensive.
By ziara in forum Family FinancesReplies: 5Last Post: 26-05-2012, 15:50
By 2BlueBirds in forum House & GardensReplies: 12Last Post: 28-02-2012, 08:57
By mum2bubba in forum Single ParentsReplies: 23Last Post: 26-02-2012, 18:29
Einsteinz MusicFun & interactive music classes! Classes are taught by professional musicians! Children are taught the fundamentals of ...
LATESTToilet training: when is the best time to start?Why it is OK for your child to be differentWhat is a blessing way? How is it different to a baby shower?
POPULARWhen can I start giving chores to my children?New baby nursery checklist – a guide to newborn essentialsWhat to pack for labour and hospital – a checklist
FORUMS - chatting now ...
Bbt chart thread #8Conception & Fertility General Chat
Egg Donation in Greece #5Egg Donation
IUI QueryNon-IVF fertility assistance
IUI - first time fertility treatmentNon-IVF fertility assistance
Mirena helpContraception issues
Food supplements for kidsGeneral Parenting Tips, Advice & Chat