It is a bit of a catch-22 situation really. Should your sell your home before you look for a new one? Or find one you want to buy before going down the path of selling up? Both have their advantages and disadvantages, and it’s about working out which option is right for you and your situation. 

Selling your home first, and buying after

This is the path that most people take - they sell up, and then use the available funds to purchase a new property.

But of course the worry always is, what happens if the house sells quickly and the settlement date doesn’t provide a lot of time to secure another home (particularly if the market is tight)? This may mean you’re forced to buy something that you aren’t completely happy with, and it can also be a stressful time juggling the process of getting your property sold, while scouring for a new one.

Or another scenario is that you see houses that you like come and go, as yours remains dormant on the market. This can be frustrating, and upsetting - particularly if you have plans that are waiting on the move to happen, like a new job, or your children starting at a new school. It can feel like your whole life is on hold!

Of course there are remedies to this situation, and you have a few options available:

• If your house does sell faster than planned you could either ask for a longer settlement period, or ask the new owners if they would mind renting it back to you while you look for a property to buy
• You could move into a short-term rental or offer your services to house sit
• You could put your furniture and home wares into storage and stay with family or at a motel/hotel  

Buying your new home first, and selling after

You’ve thought about moving, but before you can even put your property on the market, you have found the house of your dreams. Sound familiar? It does happen, and can often be the ‘push’ that make people finally decide to sell their home.

But of course it is a tricky thing to navigate, and for many it just isn’t possible to finance the purchase of a new property before they have the equity out of their current residence.  

There is something called ‘bridging finance’ which can help people to secure a house they want, before selling their current one. However interest rates on bridging loans can often be a lot more than a standard home loan, and of course there would be the upkeep of two mortgages for a period of time - so you would need to be able to service them both.

But there is also the risk that your current property may not sell as quickly as first thought, so you are stuck paying for both houses for longer. Or your home may sell for less than expected, which means you are left with a shortfall of funds that you were most likely relying on. However bridging finance does work for some, and with some banks there is the option of paying interest-only for the bridging loan, making it more manageable to pay.

Aside from bridging finance, there are also a few other options such as:

• Make the sale of your current home a contingency on the purchase of your new home (however this could put some sellers off)
• Ask for a longer settlement for your new property, giving you some breathing time to sell your current home
• Rent out your old home until a buyer comes along, or rent out your new home while getting your existing home sold  

Read more: House not selling? 6 reasons why houses often fail to sell

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Buying and selling property is a stressful business, but you never know what is possible until you ask. Don’t forget about speaking to a mortgage broker, your bank, or even a trusted real estate agent to get their thoughts and advice - especially if you find yourself struggling with any of the above.

Ready to sell your home? Check out our essential guide - download for free now!