Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa, says sellers need to consider their financing options and the current market conditions.
If they are selling their home as equity for their new home, he says, there will be a suspensive condition in their offer to purchase that states that the sale of the home will only go ahead once your property has been sold.
In situations where there is more than one offer on the table, sellers can choose to reject your offer in favour of a buyer who already has the necessary financing available.
“This is why some choose to sell first in order to increase their chances of locking down their dream home when they eventually find it.”
If you can afford to purchase a second home without selling your first home, working out the answer to the question is simple, Goslett says.
“If you choose to buy first, you carry the risk of having to pay off two bonds while you wait for the sale of your first home. Should you choose to sell first, you still run the risk of rushing your purchase in order to limit the amount of time spent in a temporary living situation.”