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'Buy Before You Sell' Gaining Traction in Global Markets

In real estate, cash is king - especially in competitive markets. Overseas there’s a new trend emerging called ‘power buyers’, who help people purchase in cash before they sell their existing home, and it’s turning the traditional process on its head.

It’s yet to catch on in New Zealand, but it’s transforming how people buy and sell real estate in places like the US. In just seven years billions of dollars have been invested in this emerging sector.

How does it work?

A buyer finds their next home, and the power buyer purchases it on their behalf. The buyer moves in, while their old home is listed for sale by the power buyer.

If the property is unsold, it’s purchased by the power buyer. The sale is completed when the buyer buys their home from the company.

Could this work in New Zealand?

The power buyer model is very new in the US, but is gaining traction.

There’s a tonne of disruption happening overseas, and existing companies are responding to the change in consumer demand by launching their own innovations like this. It’s a while off in New Zealand, but it’s a trend the market will be watching closely - especially in an ultra-competitive market like ours.