Vendors Needn’t Be Nervous About Securing Another Property
For those nervous about selling and not successfully securing another home there’s a few things they can do to mitigate the risk. Delaying listing in this hot market, however, is not one of them,” says Derryn Mayne, Owner of Century 21 New Zealand.
“With so few competing listings, and with interest rates expected to rise from the end of this year, if you’re contemplating selling now’s the time to act,” says Ms Mayne.
She says when the market’s slow, some get caught not being able to sell their existing home after they’ve bought a new one. That can mean bridging finance. However, when the market is hot like now, the reverse can happen: Vendors can potentially end up homeless!
“The real estate market is suffering from very few listings which sees many homeowners sitting tight. They suspect they won’t be able to find something better without forking out a lot more money. Instead, many are spending on home and property improvements,” she says.
However, those worried about selling and not being able to buy again have options.
“Sellers can seek a longer settlement time – like three to four months – to give themselves a better chance at buying again. In this market, desperate buyers can’t often be choosers so many would probably accept a longer settlement.
“Likewise, buyers can submit a conditional offer on their next home subject to their own place selling and hope that gets accepted. However, in this current market, the likelihood of an escape clause being inserted for the benefit of the seller is high,” she says.
The Century 21 leader says if buyers go for the ‘subject to sale’ approach, they’ll need to put your very best price forward and give every assurance their existing home is ready to sell in a flash.
She says in a hot market the industry sees plenty of examples where a vendor decides to sell their own home very quickly, so they’re cashed up to buy a place they’re dead keen on at auction. However, it can deliver double disappointment as they effectively undersell their existing home only to miss out on their dream home by a country mile.
“Protect yourself as much as you can, but also know that right now with the right agent, marketing campaign and exposure, you’ll get top dollar!
“This winter could well prove stronger than the coming summer, so I’d be listing sooner rather than later. If that means, at worst, then spending a few weeks living with extended family or taking a short-term rental, it will be a small price to pay,” says Derryn Mayne