Selling and Buying

Selling and buying at the same time in Levin: how do you line it up?

Many Levin sellers are also buyers. They want to move on without owning two homes or being left without one. There is no single right way to do it, and each path has trade-offs. This guide sets out the main options and costs, drawing on Settled.govt.nz and Trade Me's guide to buying and selling together.

Should you sell first or buy first?

• Sell first: once your sale is done, you are a more appealing buyer with certainty about your budget. The trade-off is that you may need to rent for a while between homes.
• Buy first: you will probably need an offer conditional on selling your current home, and may need bridging finance. Trade Me's guide describes bridging finance as expensive, so ask the seller about any cash-out clause before you commit.
• Do both together: list your home while you search, and aim to line up both settlement dates so the move runs smoothly.

What is bridging finance?

Settled.govt.nz explains that bridging finance helps if you buy before you sell. You usually pay interest only on the new loan until your current home sells, but you are effectively carrying two home loans in the meantime. If your home takes longer to sell, or sells for less than expected, you could owe more than you planned, so it is a risk to budget for. Talk to your bank or mortgage adviser early.

What does it cost to sell?

Settled.govt.nz lists the costs worth budgeting for:

• Preparation and any renovations.
• Advertising, which is usually paid upfront when you sign the agency agreement.
• LIM and building inspection reports.
• Lawyer or conveyancer fees, which may be deducted at settlement.
• The agent's commission, usually taken from the buyer's deposit, which is typically about 10 per cent of the price and held in trust. GST on the commission should be included in the agency agreement.
• Moving costs, including reconnecting services.

Our guide to preparing to sell covers the preparation side, and the agency agreement checklist explains what to look for before you sign.

What happens on settlement day?

The buyer pays the balance on settlement day, usually through your lawyer or conveyancer, who coordinates with the buyer's lawyer and with your bank if you have a loan. Because you may be settling on a purchase the same day, ask your lawyer early how to line the two up.

What about tax?

Settled.govt.nz notes that residential sales usually do not include GST, with exceptions if either party is GST-registered. It also flags the bright-line rule, which can create tax on some sales within a set period unless an exception applies, such as for a main home. Check the details with Inland Revenue or your accountant. This page is general information, not tax, legal or financial advice.

How do we help?

Start with a free appraisal so you know your likely budget, then read about methods of sale. A sale method with a set date can help you plan your move, and our team can talk you through the timing. Browse homes for sale while you plan, or call our team on 06 367 0661.

Sources

• Settled.govt.nz: Thinking about your finances when selling
• Trade Me: Guide to selling and buying a house at the same time