How long does it take to sell a house? Unfortunately, there is no straightforward answer to this question. Listing times vary based on numerous factors, so how long it takes to sell one person’s house can differ from someone else’s. When selling your home, it’s crucial to understand why you’re selling and what options are available to you when purchasing your next home. Read on to find out more. On average, how long does it take to sell a house? Ok, if we’re simply looking at average figures, it takes 30 days to sell a house in Australia. However, this number is one to take with a grain of salt, as it doesn’t factor in how long the settlement is and building time (if your property is being developed). Web resource tools such as the Domain suburb profile or the Real Estate suburb profile allow you to search for your postcode and find a complete suburb profile for your area. They show things like the average sales price, rental yield, interested buyers, number of houses available, and so much more, so you can fully understand how your property may stack up against the others. If you’re looking for a way to manually find the average time spent on the market for your suburb, tracking real estate websites and recording details like price and sales date can help you obtain some of this information, though it will be limited. Why are you selling your home? People sell their homes for many reasons. Perhaps you’re looking to extend your family (congratulations!), so you need to upgrade your house. Maybe you’ve recently become an empty nester and are looking for something a little bit smaller. Whatever the reason, it’s only normal that you’ll want to know how long it takes to sell a house. Major life events (such as a divorce or separation) or changing financial goals can also drive you to sell. If your financial goals change – for example - you may want to sell your property to release your home’s equity for investment.
What options are available to me as a homebuyer?
You’ve decided you want to sell your place, but do you know what options are available to you when purchasing your next home? At Inovayt, our skilled mortgage brokers can assist with the following options regarding your new property. Bridging loan A bridging loan allows you to purchase and settle on your new home before you sell your existing one. This makes the process easier for those who aren’t keen on moving into short-term accommodation (or back to mum and dad’s!) while they wait for their house to sell. To learn more, read our blog on bridging loans. Simultaneous settlement A simultaneous settlement is difficult to manoeuvre and should only be done with the assistance of a skilled mortgage broker. In this option, both transactions are settled simultaneously (as the name suggests). Although it can be tricky to orchestrate, the benefits of a simultaneous settlement include the following:
You’ll only need to move once.
You won’t need to worry about temporary accommodation.
Because of these benefits, you’ll also save on fees like two lots of removalists and rental fees).
The loan for your current place can be refinanced and replaced with the loan for your new property.
You can plan to disconnect and reconnect services in your new home.
Your mortgage broker must time these transactions perfectly, as delays with one can impact the other. A domino effect can arise if there is a delay in the transaction, causing a headache for all parties. Sell first, purchase later If you’d much prefer to know how much money you’ll have for your next home, you may choose to sell first and purchase later. There are – as with anything – pros and cons to this option. Positives for selling your home first include:
You’ll have the funds readily available and know exactly how much you can spend.
You won’t need to rush through the sale process as you’re not relying on something like a simultaneous settlement.
You won’t need to obtain a bridging loan.
You’ll be more appealing to vendors as you’re not waiting for financial approval and the sale of your house.
The negatives that come with selling first and purchasing later include:
You may spend more than you’d like if property prices rise between the time you sell and the time you buy.
Potential relocation or rental costs you may incur.
Guarantor loans A guarantor loan helps many purchase a house without needing to pay the full 20 per cent deposit or lender’s mortgage insurance (LMI). This loan enlists the help of a guarantor to co-sign for a limited portion of the finance. Essentially, this means that the guarantor agrees to repay the borrower’s debt should they default on their loan. The great thing about guarantors is that they can be removed down the track under certain circumstances. However, guarantors must carefully weigh up the risks involved when deciding to co-sign.
We’re here to help!
Whether you’re looking to upgrade, downsize or release equity, selling your home is a significant decision, and if you’re wondering, “how long does it take to sell a house?” you’re not alone. While this question is common, there is no set-in-stone answer. When you’re ready to buy your next home, it’s important to come and talk to your Inovayt mortgage broker as soon as possible. They will meet with you to discuss your reasoning behind selling – have your circumstances changed? Is selling your house the best option for you? If not, what option may be better suited? Once you and your broker have discussed selling your property, it’s time to talk about the purchasing options available to you when you do sell. With loan options varying from guarantor loans to bridging loans, and simultaneous settlements to selling first and buying later, our experienced team analyses your financial situation and knows which one will be best for you. To find out more, get in touch with an Inovayt mortgage broker.
