If it's time to move on from your current home and take out a mortgage refinance for a new property, there are some important considerations when it comes to transitioning from one house to another.
You'll first need to decide whether to sell your current home before you buy, or if it's a better option to wait until you've found the right home to sell your current one.
Both approaches have their pros and cons, so it's important to weight your options carefully.
Choosing when to sell is also an important consideration. Selling during spring and summer is notoriously popular, but there is a lot of competition. Selling in winter has advantages and disadvantages, as well.
By making a careful evaluation of your options, you'll be on a better track to securing the perfect new home.
Know your finance options
Perhaps you want to expand your family, live in a different area or even downsize your home.
Whatever your reason for packing up your current house and finding a new place to call home, it's important to ensure that you've looked at your mortgage options.
If you sell your existing property before buying a new one, you won't be burdened with having to pay two mortgages at the same time.
However, you might feel pressure to buy a new property and settle for something that isn't quite right.
If you want to wait until you've found the perfect new home to buy before selling your existing property, have a chat with your lender about bridging loans.
Bridge loans patch the difference between your new home's sale price and your existing mortgage if you are still in the process of selling your current home.
Selling in summer
If you choose to sell in spring or summer, you can utilise the naturally warmer weather.
People may be more interested in making their way around open inspections in warmer climes when gardens are blossoming and these balmier months tend to see stronger buyer and seller activity.
Another benefit of selling during spring or summer is the ability to make the most of daylight hours.
Due to the longer days, you'll have more flexibility with when you host open inspections, which could mean the difference between getting a good price and a great price.
However, families and couples often head away during summer holidays, so you could lose out on appealing to a wider pool of buyers.
The flipside of this is that busy families may have more spare time to attend open inspections and seriously consider a new home purchase. Consider when people are likely to be away and plan your open inspections accordingly.
Appealing to winter buyers
Selling in winter is often perceived as a challenge.
While this may be true to an extent, it's still an option that warrants consideration.
There may be fewer buyers on the market, but those who do visit open inspections during chillier months are quite possibly very committed to making an offer.
If there are less homes on the market, there's a much better chance of your property standing out, too.
Just as is the case in spring, you can make the climate work for you. Create a cosy atmosphere in your home to invite prospective buyers into the space.
Keep rooms warm and well lit. While it might be bleak outside, you can create a welcoming space inside to make people linger for longer and properly consider the prospect of buying your home.
Considering whether to sell before or after buying a new property, finding the right home loan interest rate and choosing when to sell might seem tricky, but it really just requires careful consideration and financial planning.