Navigating the Spring Selling Season: Risks, Rewards, and Key Considerations
With spring in full bloom, a record number of homes are hitting the market. The vibrancy of this season, coupled with the myriad of opportunities available, makes it a favoured time for both buyers and sellers. But with opportunity comes risk, and it’s crucial to be well-informed as you dive into the property market.
The Double-Edged Sword of Buying and Selling at the same time (Simultaneous Settlement)
Simultaneous settlements – where you sell your old home and buy a new one at the same time – are a common practice, so much so that of the 25 bridging loan applications we’ve had approved, 23 didn’t proceed as our clients managed to settle their transactions simultaneously, negating the need for bridging. This emphasises the prevalence of this strategy, but it’s essential to approach it with caution. While many pull it off seamlessly, there’s always a risk of selling without finding your dream property, or conversely, buying before selling.
Bridging Loans: A Lesser-Taken Path, but an Option Nonetheless
Although bridging loans offer a solution to the aforementioned risks, they’re not for everyone. The common misconception is that they are expensive, although they’re not as expensive as you may think. In fact, if it allows you to buy with confidence and avoid the double relocation, it could be money well spent. The main downside is that they are hard to get due to the high amount of equity and/or savings required to qualify.
Treading the Spring Path: Tips for the Wise Buyer/Seller
Spring promises plenty of opportunities, but it’s paramount to tread wisely. A key piece of advice for those keen on buying first is to remain conservative with their sale price expectations. Overestimating your home’s worth can lead to unforeseen financial strain. It’s normal for us to overestimate the value of our own homes, but being unrealistic can result in extreme disappointment and even potential financial loss.
And if you’re in the market, don’t forget we offer an impressive budget planner tool to assist with your financial preparations specifically designed for buyers and sellers, plus an extra feature if you’re interested in keeping your home as an investment. It’s available upon request and can make a significant difference in your buying/selling journey.
In Conclusion
While spring ushers in fresh beginnings and ample property opportunities, it’s essential to navigate the season with both eyes open. Whether considering simultaneous settlements or exploring the less-trodden path of bridging loans, being informed is your best asset.
Thinking about diving into the spring market? Wondering if now’s the right time for you? Book a time with me to discuss your situation in detail. For an even deeper dive, access our comprehensive buying and selling guide or watch our informative video.