Should you buy or sell first? A guide for Hobart homeowners

One of the first questions homeowners ask when planning their next move is whether they should buy first or sell first.

There isn't a single answer that suits everyone. The right approach depends on your financial position, appetite for risk, current market conditions and personal circumstances. Understanding the advantages and trade-offs of each option will help you make a confident decision.

Option 1: Buy Subject to the Sale of Your Current Home

Purchasing your next home subject to selling your existing property offers certainty. It allows you to understand exactly what you can afford before committing to an unconditional purchase.

However, contracts with sale conditions often include a Shorter Period Clause (sometimes referred to as a 48-hour clause). This allows the seller to continue marketing the property. If another buyer submits an acceptable offer, you may need to remove your sale condition within a short timeframe or risk losing the property.

Working with an experienced property specialist can help minimise these risks through careful negotiation and contract management.

Option 2: Purchase Before Selling

Some homeowners choose to purchase first using bridging finance.

This option provides flexibility, particularly when you've found the ideal property but haven't yet sold your current home. The advantage is avoiding the pressure of finding your next property after you've sold.

The trade-off is financial uncertainty. Until your current property sells, your final budget remains unknown, and you may temporarily own two properties. A finance broker can help determine whether bridging finance is appropriate for your circumstances.

Option 3: Sell Before Buying

Selling first provides the greatest financial certainty.

Once contracts are exchanged, you'll know exactly what your purchasing budget looks like. While you may need to negotiate a longer settlement, arrange temporary accommodation or organise a rent-back agreement, many homeowners value the confidence that comes with removing financial uncertainty.

Which Option Is Right for You?

Every move is different.

Your decision should consider:

• Your financial position
• Current market conditions
• The availability of suitable homes
• Your timeframe
• Your comfort with risk

At Peterswald, we work alongside your finance broker and legal representative to help you choose the strategy that best supports your next move.