If you’re like most home buyers, the purchase of a new property will coincide with the sale of your current one. While a single real estate transaction can be complicated, dealing with two simultaneously can be even more so. Fortunately, it doesn’t have to be that way.
By timing your home purchase and sale carefully, you can pave the way for a smooth and efficient transition. If you’re trying to decide whether to buy or sell first, here’s what you should know…
Selling first
Many homeowners choose to wait until they’ve accepted an offer on their property before they submit one of their own. This approach comes with both benefits and drawbacks.
The most common reason buyers sell first is to ensure their financial security. While Toronto properties are known to inspire all-out bidding wars, no real estate market is entirely predictable. If you put your home up for sale and don’t see the impressive offers you expected, it could put you in a tight spot financially. Selling first takes this element of risk out of the process.
A sell-first strategy can also make budgeting for a home more straightforward. There are a lot of unknowns when you put a property on the market, including the bids you’ll receive. If you sell before you buy, you’ll know exactly how much money you have in the bank—and how much you can spend during your search.
Of course, there are also a few potential drawbacks associated with selling first. To start with, if you don’t have another property lined up, you may have to scramble to make living arrangements after you sell. If you’re committed to this approach, it could also lead you to pass on your dream property—or an incredible deal.
Buying first
When it comes to making the transition between one home and another, many buyers choose to purchase first. This course of action comes with pros and cons.
If you find the perfect property, choosing to make an offer right away could mean securing your dream home. The same is true if you find a piece of property that meets your needs for a price that’s well below market value. It’s rare in Toronto, but it can happen. In other words: there are times when buying first is the only way to take advantage of an opportunity.
Then there’s the convenience factor. Having a home to move into as soon as you sell can mean a less stressful moving process, a more relaxed timeline, and (if the alternative is a hotel) lower expenses.
Of course, there are also a few cons associated with buying first. The biggest is that there’s more risk involved. Even in a strong seller’s market, you may be reluctant to make a major purchase before your financial situation is completely secure.
The good news? If you decide to buy before you sell, an experienced real estate agent can help you protect yourself—and take as much risk out of the process as possible.
Timing your transaction
The decision of whether to buy a home before you sell the one you own now (or vice versa) can be tricky. From the state of the market to your current finances, an experienced agent can look at any relevant factors and help you decide on a timeline that works. Are you ready to start navigating this major life transition?
Preparing to buy an investment property? For over 36 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at info@christensengroup.ca or calling us at 416-441-2888 ext. 772.
