Avoiding risk and enduring a little inconvenience can pay big rewards

Sell/Rent/Buy – The only smart way to change homes in Sydney

​​Smart Real Estate buyers play smart games when changing properties and unless you have very deep pockets and the ability to sleep well regardless of what’s going on in your life, then you should too.

Sell/Rent/Buy is the smartest way to change property and in today’s economy of short term rentals, an easy and highly flexible process.

So why go to all the trouble of moving twice. The answer to that is simple, Sell/Rent/Buy is like an insurance policy that enables you to negotiate great deals and be in control throughout the transaction process without a ticking time clock pushing you toward unwise decisions. Settlement of property transactions can suffer delays, mistakes and the completely unexpected.

Picture this, your house is on the market and during the marketing period you’ve been out viewing properties and have just chanced upon a home you love. You’ve negotiated the settlement terms to fit with the settlement of your current property, you’ve included in your sale contract a clause to allow the deposit funds from your buyer to be released and transferred to secure your new purchase. Your home sale on the weekend went well with a successful sale meeting your expectations.
​
Congratulations, a monumental feat, as negotiations under these circumstances are very difficult to co-ordinate and conduct in an aggressive manner when your eye is on time line co-ordination, less so best price/ best asset selection.

Three weeks into the settlement period you get a call from your solicitor, he has just got off the phone with the purchaser’s solicitor and the news is both sad and bad. The purchaser passed away over the weekend. You are now neck deep in the complex legal processes that relate to death, probate and the potential to rescind the contract. Regardless of which way it goes all will take lengthy time stretching way beyond the negotiated settlement terms of your new purchase.

It’s November 2023, the reserve Bank has just increased interest rates by .25% and the market is already showing signs of exhaustion as it nears Christmas. The new home you’ve purchased is progressing to settlement, you’re locked in to this contract and failing to complete will see a total loss of deposit, plus legal action to recover agents fees and expenses accrued in reselling the property you pulled out of plus any financial short falls.

You’re now faced with the reality of securing eye wateringly expensive bridging finance (if you qualify) and the potential you’ll need to go through the expense and timeline of relisting your home for sale, potentially in a weaker market. (Based on a True Story.)

Now let’s look at a better way of entering a large transaction. Buying well needs to be done without personal constraints that limit negotiation strategy, and place the buyer at heightened risk. An unconstrained buyer has the financial underpinning to control the transaction and negotiate with strength. Once you’ve successfully negotiated a great deal, completion is just a process, not a risk taking exercise.

Pros of Sell/Rent/Buy

• Sell your existing property well without time pressure – enjoy a strong negotiation position.
• Use your own finances - not expensive bridging finance straddling sell/buy negotiations.
• Clear head, minimal financial pressure, and flexible timeline – an unencumbered buyer is simply a calmer and better equipped buyer who will ultimately make better decisions.
• Strong position to negotiate - Be a ready buyer able to offer the seller a quick and smooth sale transaction.
• Win the support of the Real Estate sales agent – getting the Real Estate agent on your side is an important part of successful purchase negotiation, remember for them a quick sale is a good sale.
• Experience the suburb and property type you wish to buy – Use Short term rental like Airbnb or a six month lease to live and experience the suburb you wish to buy in. In the current rental market, even a six month lease can easily be broken, usually by paying a two to four week penalty if you find yourself successfully negotiating a quicker deal than expected.

Cons of Sell/Rent/Buy

• Two moves are always harder than one - Storage space and a good removalist will be required – compare the cost of the double move to your ability to buy the right home and work out which delivers the best outcome.
• Disruption to life and family – use the time to experience a different lifestyle – make it an adventure.
• No longer a home owner and now a renter – Do not fret, I’m sure your friends will still love you. The reality is time out of market can work against you from a market progression perspective if it extends over years, but three to six months out of the market while conducting an active search will be more than compensated through your ability to negotiate hard and move on a deal fast.

Use the services of a Buyer’s Agent focussed on securing quality Principal Place of Residence homes. Freeing yourself via the Sell/Rent/Buy process is by far the strongest foundations from which to pursue your next purchase. You don’t want to be out of the market for too long and the point of the exercise is to continue your journey up the property ladder and buy a quality asset that not only suits your needs and wants but will also be your number one Financial Asset. In buying a home in Sydney, you’re dealing with funds of a value many times that of your superannuation, your Sydney home is a significant part of your retirement funds. Use a Real Estate Buying Agent professional to ensure you negotiate and buy well. The experience, knowledge and data a Principal Place of Residence focussed Buyers Agent bring, benefits both the up sizer and downsizer - an area where buyers can find themselves buying into poor preforming assets that overtime can undo their past Real Estate financial success.
Sell/Rent/Buy allows you unmatched flexibility and an unrestricted timeline to ensure you sell for the best price, take the necessary time to find a quality investment grade new property and negotiate well on that purchase.

Tell a Real Estate Sales Agent at a viewing that you’re waiting to sell your current home and watch the interest fade from their face, your ability to close the deal has been substantially impaired in their eyes.

On the flip side, a Buyer’s Agent who tells the Sales Agent they’re client has already sold and ready to secure the property ASAP will receive a big smile and potentially a glint from their gold tooth. Lol!

The negotiations are in our court.

Flexibility is the name of the game when buying Real Estate, a little short term inconvenience can result in an exceptional buying experience and often the result of good decision making from a calm mind.    

Important Note: The above article is not intended as financial advice and serves as an example of a strategy practiced by clients we work for in securing quality property in the Sydney Real Estate market. It is strongly advised that anyone looking to buy property should first seek professional financial advice from a licensed accountant, financial planner, and mortgage broker to review their individual financial circumstances and abilities.