{"id":63400,"date":"2020-11-25T13:24:59","date_gmt":"2020-11-25T03:24:59","guid":{"rendered":"https:\/\/whichrealestateagent.com.au\/?page_id=63400"},"modified":"2020-11-27T14:46:37","modified_gmt":"2020-11-27T04:46:37","slug":"buy-and-sell-property-at-the-same-time","status":"publish","type":"page","link":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/","title":{"rendered":"How to Successfully Buy and Sell Property at the Same Time"},"content":{"rendered":"<p><!-- <ezTOC> --><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Buying or selling a home is not a simple task and plenty can go wrong. Trying to buy and sell property at the same time only adds complexity \u2013 but it can be done. Our guide includes everything you need to know about buying and selling simultaneously to give you the best chance of success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[do action=&#8221;ds_cta_undraw&#8221; imageurl=&#8221;\/blog\/wp-content\/uploads\/2020\/08\/illustration_select_house.png&#8221; heading=&#8221;Find an experienced agent&#8221; desc=&#8221;Top agents can assist in buying and selling.&#8221; buttonlink=&#8221;\/your-best-agent&#8221; buttoncta=&#8221;Find a local agent&#8221; \/]\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#What_is_simultaneous_settlement\" title=\"What is simultaneous settlement?\">What is simultaneous settlement?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Should_I_buy_property_or_sell_property_first\" title=\"Should I buy property or sell property first?\">Should I buy property or sell property first?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Buying_before_selling\" title=\"Buying before selling\">Buying before selling<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Selling_before_buying\" title=\"Selling before buying\">Selling before buying<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Find_a_good_agent_to_help\" title=\"Find a good agent to help\">Find a good agent to help<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Extend_the_settlement_period\" title=\"Extend the settlement period\">Extend the settlement period<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Subject_your_offer_to_completion_of_sale\" title=\"Subject your offer to completion of sale\">Subject your offer to completion of sale<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Apply_for_a_bridging_loan\" title=\"Apply for a bridging loan\">Apply for a bridging loan<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Use_a_rent-back_agreement\" title=\"Use a rent-back agreement\">Use a rent-back agreement<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#What_is_a_rent-back_agreement\" title=\"What is a rent-back agreement?\">What is a rent-back agreement?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#5_common_mistakes_when_trying_to_buy_and_sell_property_at_the_same_time\" title=\"5 common mistakes when trying to buy and sell property at the same time\">5 common mistakes when trying to buy and sell property at the same time<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#1_Forgetting_to_make_a_plan_B\" title=\"1. Forgetting to make a plan B\">1. Forgetting to make a plan B<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#2_Assuming_youll_qualify_for_a_larger_home_loan\" title=\"2. Assuming you\u2019ll qualify for a larger home loan\">2. Assuming you\u2019ll qualify for a larger home loan<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#3_Overestimating_your_propertys_value\" title=\"3. Overestimating your property\u2019s value\">3. Overestimating your property\u2019s value<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#4_Using_two_different_real_estate_agents\" title=\"4. Using two different real estate agents\">4. Using two different real estate agents<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#5_Settling_at_the_wrong_time\" title=\"5. Settling at the wrong time\">5. Settling at the wrong time<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/sell-property\/buy-and-sell-property-at-the-same-time\/#Buy_and_sell_property_at_the_same_time_with_a_quality_agent\" title=\"Buy and sell property at the same time with a quality agent\">Buy and sell property at the same time with a quality agent<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_simultaneous_settlement\"><\/span><span style=\"font-weight: 400;\">What is simultaneous settlement?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Anyone who is trying to buy and sell property at the same time by closely aligning the settlement dates is aiming for simultaneous settlement. This means settlement for the sale of your home and the purchase of your new one occurs on the same day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s no easy feat but, if you find an agent to help you achieve this, you can avoid mortgage overlap and will only have to move house once. The downside is that you\u2019ll likely have to sell your home for less and pay more for your new home to incentivise the other parties to be flexible.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Should_I_buy_property_or_sell_property_first\"><\/span><span style=\"font-weight: 400;\">Should I buy property or sell property first?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_63409\" aria-describedby=\"caption-attachment-63409\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img class=\"wp-image-63409 size-full\" src=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Buy-or-Sell-First.jpg\" alt=\"Buy and sell property at the same time\" width=\"1000\" height=\"436\" srcset=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Buy-or-Sell-First.jpg 1000w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Buy-or-Sell-First-300x131.jpg 300w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Buy-or-Sell-First-768x335.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-63409\" class=\"wp-caption-text\">Buy or sell a property first<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Even though your goal is simultaneous settlement, one usually comes before the other, and the market can guide you on which to do first. Both options have advantages and disadvantages.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buying_before_selling\"><\/span><span style=\"font-weight: 400;\">Buying before selling<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In a rising market, it\u2019s clear that house prices will increase in price, so it makes sense to buy first, when prices are low, and sell later, when prices are higher. That way, you save on your purchase and earn more on your sale.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Buying first isn\u2019t right for everyone. See the advantages and disadvantages of buying first below.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Advantages<\/b><\/td>\n<td><b>Disadvantages<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Take your time to choose the right home at the right price without any pressure from the imminent sale of your house<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You will pay two mortgages if you settle on your purchase before selling your home<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Move house once \u2013 from your current property to your new property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You may not be approved for your new loan because your debt-to-income ratio will be higher with an existing mortgage<\/span><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td><span style=\"font-weight: 400;\">You may feel pressured to sell for less to sell quickly now that you have two mortgages<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<blockquote><p><span style=\"font-weight: 400;\">Most homeowners who have a current mortgage sell first to avoid the risk of a double mortgage. But there are ways to minimise this, like extended settlements and bridging loans, which we cover below.<\/span><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Selling_before_buying\"><\/span><span style=\"font-weight: 400;\">Selling before buying<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In a falling market, house prices are on the way down, so it makes sense to sell first, when prices are high, and buy later, when prices are low. That way, you increase profit on your sale and pay less for your purchase.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Selling first is a popular option for those who can\u2019t afford to pay two mortgages. Here are the advantages and disadvantages.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Advantages<\/b><\/td>\n<td><b>Disadvantages<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Selling first ensures you only need to pay one mortgage at a time<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You will be out of pocket if you need to rent a place while you look to buy<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">There&#8217;s no pressure to sell because you haven\u2019t purchased anything yet, so you can wait for the right price<\/span><\/td>\n<td><span style=\"font-weight: 400;\">If paying for rent, you may feel pressured to buy quickly. You will usually end up with a worse deal if you\u2019re under pressure.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">If you know how much your house will sell for, you know your budget for your new home<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Moving house twice is inconvenient and expensive<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Loan approval is easier if you don\u2019t have a second mortgage<\/span><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<blockquote><p><span style=\"font-weight: 400;\">Regardless of which option you choose, the buying and selling processes may not go smoothly, so it\u2019s best to be prepared. See how below.<\/span><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Find_a_good_agent_to_help\"><\/span><span style=\"font-weight: 400;\">Find a good agent to help<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_63404\" aria-describedby=\"caption-attachment-63404\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img class=\"wp-image-63404 size-full\" src=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/A-Good-Agent.jpg\" alt=\"Find a good agent to buy and sell property at the same time\" width=\"1000\" height=\"520\" srcset=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/A-Good-Agent.jpg 1000w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/A-Good-Agent-300x156.jpg 300w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/A-Good-Agent-768x399.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-63404\" class=\"wp-caption-text\">Find a good agent<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Your real estate agent should have experience buying and selling at the same time. He or she could help you juggle decisions to get you as close as possible to settling on both properties simultaneously. For example, your agent could:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">keep an eye on the market to ensure you buy and sell at the best possible time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">advise you to hold off on accepting a good offer while you negotiate offers for potential properties to buy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">ensure you get your property ready for sale at the right time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">negotiate special conditions that help get you the best deals simultaneously.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">[do action=&#8221;ds_cta_undraw&#8221; imageurl=&#8221;\/blog\/wp-content\/uploads\/2020\/08\/illustration_report.png&#8221; heading=&#8221;Compare experienced agents now&#8221; desc=&#8221; Find an agent that works to your goals.&#8221; buttonlink=&#8221;\/your-best-agent&#8221; buttoncta=&#8221;Find a local agent&#8221; \/]\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Extend_the_settlement_period\"><\/span><span style=\"font-weight: 400;\">Extend the settlement period<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One way to buy and sell property at the same time is to extend the settlement period by 3 to 6 months, but this only works if the other party agrees.\u00a0<\/span><\/p>\n<p><b>If you sell first<\/b><span style=\"font-weight: 400;\">, your contract of sale will include an extended settlement as a condition of sale. If your buyer can wait, this will give you time to find and purchase a home before settling.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\"><em>Advantage<\/em>: You increase your chances of moving straight from your current home to your new home and avoid paying for a hotel or short-term rental.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><em>Disadvantage<\/em>: You will lose potential buyers who are not willing to wait longer to settle.<\/span><\/p><\/blockquote>\n<p><b>If you buy first<\/b><span style=\"font-weight: 400;\">, you will need to ask the seller to include an extended settlement as a condition of sale in the contract. If the seller is not in a rush to sell, this will give you time to find a buyer for your property.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\"><em>Advantage<\/em>: You increase your chances of selling your home before settling on your new one and avoid ending up with two mortgages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><em>Disadvantage<\/em>: Your offer may be rejected in favour of one that has a normal settlement period.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">A good agent can help you negotiate an extended settlement with either party or suggest an incentive to offer if it\u2019s proving difficult.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Subject_your_offer_to_completion_of_sale\"><\/span><span style=\"font-weight: 400;\">Subject your offer to completion of sale<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_63405\" aria-describedby=\"caption-attachment-63405\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img class=\"wp-image-63405 size-full\" src=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/moving-house.jpg\" alt=\"Move house only once\" width=\"1000\" height=\"394\" srcset=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/moving-house.jpg 1000w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/moving-house-300x118.jpg 300w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/moving-house-768x303.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-63405\" class=\"wp-caption-text\">Move house only once<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">It\u2019s possible to buy first without the risk of two mortgages by adding the sale of your current home as a condition of sale in your purchasing contract. This allows you to sell your home before settling on your new home, avoiding the need to rent anywhere in between.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It sounds great, but you\u2019ll need a good agent to help you negotiate this successfully because:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">most buyers have plenty of competition<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">other potential buyers may not add conditions to their offers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the seller may be in a rush to sell.<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-weight: 400;\">You might need to offer more money to make your offer more competitive. You could also include unconditional and settlement deadlines into the contract. This allows either party to end the contract if the deadlines aren\u2019t met.<\/span><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Apply_for_a_bridging_loan\"><\/span><span style=\"font-weight: 400;\">Apply for a bridging loan<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A bridging loan helps you cover your second mortgage until you sell your original property. These loans:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">have a 6\u201312-month loan term<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">are interest only<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">can have higher interest rates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">include special conditions for when your property doesn\u2019t sell by a certain deadline<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">often become your second mortgage once you sell.<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-weight: 400;\">You usually need a lot of equity in your current property before a bank will consider offering you a bridging loan.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Banks vary in how they structure bridging loans:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">you may only need to make repayments on your original loan, while interest on your bridging loan accumulates and is added to your bridging loan total.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">you may need to make repayments on both.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For more on bridging loans, check out our guide on <\/span><a href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/bridging-loans\/\"><span style=\"font-weight: 400;\">How Bridging Loans Work<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Use_a_rent-back_agreement\"><\/span><span style=\"font-weight: 400;\">Use a rent-back agreement<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_63407\" aria-describedby=\"caption-attachment-63407\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img class=\"wp-image-63407 size-full\" src=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Rent-back-agreement.jpg\" alt=\"Use a rent-back agreement\" width=\"1000\" height=\"454\" srcset=\"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Rent-back-agreement.jpg 1000w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Rent-back-agreement-300x136.jpg 300w, https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-content\/uploads\/2020\/11\/Rent-back-agreement-768x349.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-63407\" class=\"wp-caption-text\">Rent-back agreement<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">If a bridging loan won\u2019t work for you and the buyer isn\u2019t flexible on the settlement date, you could enter into a rent-back agreement with your buyer and their lender instead.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This gives you time to search for a new home, while staying on as a tenant in your current home after settlement.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_rent-back_agreement\"><\/span><span style=\"font-weight: 400;\">What is a rent-back agreement?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A rent-back agreement:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">allows you to stay in the property once the buyer becomes the new owner<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">requires you to pay rent to the new owner until you move out<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">usually requires bond and advance rent<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">is negotiable<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">requires a formal lease.<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-weight: 400;\">An <\/span><a href=\"https:\/\/www.rta.qld.gov.au\/forms-resources\/forms\/forms-for-general-tenancies\/entry-condition-report-general-tenancies-form-1a\"><span style=\"font-weight: 400;\">entry condition report<\/span><\/a><span style=\"font-weight: 400;\"> is vital in a rent-back agreement. It\u2019s a record of the state of the property at the beginning of the tenancy. The new owner should complete one and give it to you to check, amend and sign so you\u2019re both on the same page.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">A rent-back agreement offers both advantages and disadvantages:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Advantages<\/b><\/td>\n<td><b>Disadvantages<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Staying in your current property means you\u2019ll move house once instead of twice<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The buyer is in a stronger negotiating position<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">You can take your time and move out when you\u2019re ready<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You will likely have fewer interested buyers<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">It lets you purchase fast as a cash buyer if a property comes up<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You might not get your bond back if you damage the property<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rent is negotiable and a good deal could see you paying less than market rent<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You will likely need to sell for less<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"5_common_mistakes_when_trying_to_buy_and_sell_property_at_the_same_time\"><\/span><span style=\"font-weight: 400;\">5 common mistakes when trying to buy and sell property at the same time<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Anyone can buy and sell property at the same time, but being prepared is the best way to ensure you\u2019ll succeed. Here are some common mistakes sellers make when trying to both buy and sell. Avoid these and you\u2019ll be ahead of the game.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Forgetting_to_make_a_plan_B\"><\/span><span style=\"font-weight: 400;\">1. Forgetting to make a plan B<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When delays happen, selling or buying a home can be stressful. When trying to do both at the same time, twice as many things can go wrong and each problem can affect both deals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the added risk of homelessness, it pays to have a Plan B. This could mean:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">topping up your emergency fund account to cover a hotel or short-term rental<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">knowing where you\u2019ll store your belongings short-term if necessary<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">organising to stay with family or friends if the worst case happens.<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-weight: 400;\">Keep in mind, your buyer might also need to buy and sell at the same time, which requires agents to settle three properties simultaneously.<\/span><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"2_Assuming_youll_qualify_for_a_larger_home_loan\"><\/span><span style=\"font-weight: 400;\">2. Assuming you\u2019ll qualify for a larger home loan<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You may not qualify for as large a loan as you think, so it pays to get pre-approval. Otherwise, you may find yourself scrambling to find a home in your price range once you sell.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you spend your time looking at expensive properties and find the perfect one, you may suddenly find out that the bank won\u2019t loan you enough to buy it. After all the careful planning you\u2019ve done to buy and sell at the same time, this could throw off everything as you start the property search again.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Overestimating_your_propertys_value\"><\/span><span style=\"font-weight: 400;\">3. Overestimating your property\u2019s value<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re relying on the money from the sale of your house for a deposit on your new home, overestimating it\u2019s value can be a disaster. Check out this case study to see why.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Julie believes her house is worth $700,000. She has set her purchasing budget at $1.7 million. With her current income, she needs $700,000 from the sale of her property as a deposit or the bank will not approve her new mortgage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Julie finds the perfect house at $1.75 million but her house sold for $630,000 \u2013 the actual value in the current market. Not only is her new house over budget, she also doesn\u2019t have enough to pay the deposit for a house worth $1.7 million.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Check out our <\/span><a href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/value\/\"><span style=\"font-weight: 400;\">Property Value Guide<\/span><\/a><span style=\"font-weight: 400;\"> to find out how to accurately value your property and avoid issues that come with overestimation.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Using_two_different_real_estate_agents\"><\/span><span style=\"font-weight: 400;\">4. Using two different real estate agents<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Buying and selling at the same time is complex enough without adding another agent to the mix. For the best chance of buying and selling simultaneously, keep it simple and choose one quality agent to handle both.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[do action=&#8221;ds_cta_undraw&#8221; imageurl=&#8221;\/blog\/wp-content\/uploads\/2020\/08\/illustration_pick.png&#8221; heading=&#8221;Search for an agent who buys and sells&#8221; desc=&#8221; Compare local agents now.&#8221; buttonlink=&#8221;\/your-best-agent&#8221; buttoncta=&#8221;Find a local agent&#8221; \/]\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The only time you should consider using two different agents is when you\u2019re buying interstate.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Settling_at_the_wrong_time\"><\/span><span style=\"font-weight: 400;\">5. Settling at the wrong time<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can boost your chances of settling both properties at the same time if you avoid settling on a Friday or late in the afternoon. Most sellers prefer to finalise the sale of their home first and rely on the funds being transferred into their accounts before settling on their new property. Choosing a Monday to Thursday morning gives you the best chance of seeing the money in your account quickly.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Buy_and_sell_property_at_the_same_time_with_a_quality_agent\"><\/span><span style=\"font-weight: 400;\">Buy and sell property at the same time with a quality agent<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Your best chance of success is with the help of a good agent. Compare your <\/span><a href=\"https:\/\/wrea.test.whichrealestateagent.com.au\/\"><span style=\"font-weight: 400;\">local agents now<\/span><\/a><span style=\"font-weight: 400;\"> and ask how they can help you buy and sell at the same time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p>&nbsp;<!-- <\/ezTOC> --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying or selling a home is not a simple task and plenty can go wrong. Trying to buy and sell [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":63402,"parent":56689,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"acf":[],"_links":{"self":[{"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/pages\/63400"}],"collection":[{"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/comments?post=63400"}],"version-history":[{"count":8,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/pages\/63400\/revisions"}],"predecessor-version":[{"id":63427,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/pages\/63400\/revisions\/63427"}],"up":[{"embeddable":true,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/pages\/56689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/media\/63402"}],"wp:attachment":[{"href":"https:\/\/wrea.test.whichrealestateagent.com.au\/blog\/wp-json\/wp\/v2\/media?parent=63400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}