Deciding that it’s time to make a change in your life is a big decision – particularly when that change involves the sale or purchase of a property. There are lots of factors to consider simultaneously, and it is of paramount import that you fully understand your financial position in order to realise your path of change and action most successfully.
In today’s blog, we speak with a couple who sold their existing property and bought a new one at auction on the very same day – with the help of Aviser Finance. It might sound an impossible feat, but when you have your financial plan ‘on point’ – as Darren and Tamara Bryan did – it can certainly be done.
Darren and Tamara’s core strategy involved refinancing their existing home with Aviser – achieving a much better deal on their homeloan and saving over $3500 into the bargain. After refinancing, they promptly obtained pre-approval on the loan they would require for their much-anticipated new home purchase. Confident in their budget, Darren and Tamara house hunted diligently – juggling a busy life and two kids – but with a strong idea of budget in their heads. This clear understanding meant they could act when an estate agent brought a keen buyer to their property who made an offer they couldn’t refuse. That very same day, Darren and Tamara went to auction and secure their dream home – confidently negotiating thanks to their homeloan loan pre-approval.
Unlike many buyers, the Bryans were then able to sit back and relax – as the majority of the paperwork required to move through to settlement had already been completed, allowing their day-to-day lives to continue with little disruption in the process. Planning ahead significantly reduces the level of stress and impact on your personal life that comes with a property sale and purchase.
Keen to get your finances sorted and make your next home transaction as smooth as Darren and Tamara? Let’s see what they had to say about their Aviser experience…
Aviser (AF): Coming to a decision that it’s ‘time to move’ is a different journey for every family. When did you know it was time to move, and how long did it take for you to take action on buying a new home? What were your first steps?
Darren and Tamara Bryan (D&T): We actually only started thinking about buying a larger house when an agent tipped us off about a property that was soon to go on the market. We knew we’d eventually need a house with an extra bedroom as our family grew. Unfortunately, we weren’t sufficiently prepared to go to market, and we missed out. We had no idea what sort of figure our current home would sell for, and we didn’t have our finances sorted so we had little idea of what budget we were working with. Missing out on that property made it somewhat clear in our minds that it was time to get ourselves sorted and prepare to move.
AF: So, your first step was refinancing your existing home loan. Explain the benefits of doing this when you are already taking steps to purchase a new home?
D&T: Well, first of all our aim was to get a lower interest rate so we could reduce our mortgage faster. We also wanted to have enough redraw available to cover a deposit on a new property, as and when we found the right one. Refinancing with Aviser saved us thousands of dollars.
AF: That’s certainly great to hear! So, the next step. Did you start searching for properties right away, or did you turn your attentions to pre-approval and budgeting?
D&T: We started searching but we had to get realistic and lower our expectations. We had our current property appraised by a few agents, and after that we were able to factor a conservative value into our budget. We decided to consider any extra capital a bonus. Throughout the process or searching and getting our finances in order, Aviser were very supportive. We had so many questions, but Martin and the team were always there to answer them and guide us.
AF: How did having your loan pre-approval make you more confident and decisive as both purchasers and vendors? Did having a sound knowledge of your position change anything in your experience?
D&T: For us, knowing our borrowing capacity definitely helped our position. Combining that with an offer on the table for our property gave us the confidence to bid strongly at auction, but also know our limits.
AF: So, the day of purchase of your new home and day of sale of your existing home sounds very exciting: could you take us through the details of how this life-changing day played out?
D&T: It certainly was a life-changer! It was a stressful and emotional day, but it was very exciting. Basically, we had spoken to a couple of agents and let them know that we would consider selling off market, should they have any buyers in mind that were interested in our property at a given price. A buyer was brought through a few days before an auction we planned to attend for a property we loved. We received an offer on the Friday, but we declined. Despite this, it gave us confidence to negotiate a deal at auction on our new home. At almost the same time as we shook hands on the new property, our potential buyer was taking a third look. We negotiated back and forth until the early evening when we closed a deal. It was indeed a whirlwind!
AF: Did you find that you were taken more seriously by agents and vendors because of your solid understanding of your finances? How did your preparation and ability to be ‘ready to act’ change your outcome as a buyer?
D&T: Our loan pre-approval definitely allowed us to be far more assertive with our bidding strategy, as we were fully aware of our limits. We were able to compete with other interested parties and secure the home we wanted.
AF: It certainly sounds like you were in a strong position, guys! Now that most of the hard work is over, what are you looking forward to most about your new home? I expect it will be life changing for you and your family.
D&T: It’ll be amazing to have more space. The kids are really excited about having their own bedrooms, and summer in the backyard will be great. We’ll be able to spend some real quality time together!
AF: Enjoy your new home with your two wonderful children guys!
So Darren and Tamara Bryan moved into their new family home with their two young children, Greta and Hugo, after a stress free sale and purchase process (well, as stress free as it can be!). The Bryans really show that being prepared to act in the market and solidifying your financial position really pays off (literally!). We spoke with their estate agent – Nicole Prime of Pride Real Estate in St Kilda – who notes the difference that preparation makes in buying and selling property. Nicole reflects that ‘when a buyer does his or her preparation with their broker prior to purchasing a property, they will always be the ‘front runners’ in the vendor’s eyes. Having your ‘ducks in a row’ will always make your offer more appealing to a vendor – as unconditional offers are considered superior and are often accepted over higher offers with conditions attached’.
The need to sell your home and purchase a new one to accommodate your expanding family is a reality that a lot of couples face. With the stress of day-to-day life and having young children, it can be a daunting challenge, but Darren and Tamara have demonstrated it can be done – and in one day! If you’re thinking about executing a smooth sale and purchase transaction, contact Martin at Aviser Finance for home loan advice tailored to your situation.