Navigating the WA Real Estate Market Current Trends and Insights

Introduction

The real estate market in Western Australia (WA) is defying national trends, with fewer houses on the market but selling for higher prices. This has led many people to contemplate whether they should buy or sell their homes first. In this article, we will explore the current trends and provide insights into the pros and cons of both options in today’s market.

Buying a Property First

Advantages of Buying a Property First

Buying a property first may seem like a less stressful option. It allows you to take your time in finding the right property and avoid paying double removalist costs by moving in immediately.

Disadvantages of Buying a Property First

In the current “sellers’ market,” with limited homes for sale but high demand from buyers, there is intense competition. This competition drives up the prices of homes, and if you are reliant on selling your home to purchase a new one, your negotiation power may be lower compared to cash offers or subject-to-finance deals. With multiple offers coming in for properties, the seller is likely to choose the offer that best suits their situation.

Another disadvantage is the risk of overestimating the selling price of your current home. This can lead to a financially difficult situation upon settlement of your new home. If you have an existing mortgage, you will need to manage two loans or resort to expensive bridging finance or a deposit bond to purchase before receiving the proceeds from your sale. It is essential to assess your financial position and have a plan in case the worst occurs.

Selling a Property First

Advantages of Selling a Property First

Selling your home first removes the risk of paying two mortgages simultaneously and struggling to make ends meet. It provides clarity on the amount you’ll have available to spend on your new property, eliminating the chance of inadvertently buying a property outside your budget.

As a buyer, selling your property first puts you in a stronger position to offer a cash or finance contract with a faster settlement. This can give you an advantage over other offers on the table.

Disadvantages of Selling a Property First

However, selling your home first also puts you under time pressure to find another property to move into. If you don’t want to rent or store your furniture while staying with family or friends, you might feel rushed into buying a property that doesn’t fully meet your needs. Additionally, you need to budget for the possibility of finding interim accommodation and moving twice.

What to Do?

To make an informed decision, it is advisable to speak to a trusted property partner, like Down Under Realty. They can guide you on the potential sale price of your home, update you on properties coming to the market, and provide advice on what may be best for you.

Additionally, consulting with a finance specialist, such as the team at Mortgage & Finance Solutions WA, can offer a deeper analysis of your situation and provide a finance health check.

By seeking guidance from these professionals, you can navigate the WA real estate market effectively and make the right decision whether to buy or sell your home first.

In conclusion, the WA real estate market presents unique challenges and opportunities. Whether you choose to buy or sell your home first, it is crucial to weigh the advantages and disadvantages carefully and seek expert advice. With the right guidance, you can navigate the market successfully and make the best decision for your circumstances.

Keywords: buying and selling houses in Australia