Buying a new house is an exciting venture. However, it’s rarely done in a vacuum. For most homeowners, purchasing a new house also means selling their current property.
While separate, the buying and selling processes are each immensely important. Further, they bring dynamic implications that could influence the other transaction and overall outcomes of the move. One of these crucial variables is timing.
By timing your home purchase and sale carefully, you can pave the way for a smooth and efficient transition. This raises the question: should you sell your house before or after buying?
Here’s what you need to know about buying first versus selling first.
Buying real estate in Toronto? Our strategic advisory services can help you make a seamless purchase. Call us at 416-722-4723 or reach us by email at evan@christensengroup.ca.
Beyond Personal Preferences
Deciding whether you should sell your current home ahead of buying another is not inconsequential. Each option has tangible pros and cons directly related to your success. While personal and pragmatic elements play a role in this decision, contemporary market conditions must also be taken into account.
In Toronto, market trends can change quickly, while simultaneously varying from neighbourhood to neighbourhood. Understanding how real estate transactions are playing out in your community provides even greater insight into which approach will be most advantageous.
Tip: Deciphering an evolving market on your own can be difficult. That’s why you’ll want to work with a Realtor who has decades of professional experience to support your goals.
Searching for strategic guidance on buying a home? Consider these related readings for more insights.
- Do You Pay Sales Tax on a House in Ontario?
- How Much is Land Transfer Tax in Ontario?
- How to Make an Offer on a House
Should You Sell Your House 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.
Greater Security
Over the last few years, Toronto has transitioned into a balanced real estate market. Today, properties are taking longer to sell compared to the beginning of the decade. For homeowners looking to move, this creates important considerations.
One of the most compelling reasons to sell your home before placing an offer on another is that it ensures financial security. You bypass the risk of managing two mortgages at once, which can be costly and anxiety-inducing.
A Full Financial Picture
Another significant advantage of selling your current home first is that it offers a more complete financial picture.
Even if you’ve received a professional home evaluation or have a rough idea of its potential value, you never know what your final returns will be until it is officially sold. A sell-first strategy ensures you’re not overspending on a new house based on what you think your current home is worth.
Stopgap Housing
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. Rental housing, especially in Toronto, can be costly. You’ll also be virtually doubling your moving costs.
Buying Before Selling
At first glance, selling your current home before buying another may seem like the safe, sensible option. However, there are circumstances where buying first can be most beneficial.
Unrushed House Hunting
Buying a house before you’ve sold your current home allows for a relaxed, unrushed process. Without a looming possession date fast approaching, you can take your time in finding a home that suits your family’s needs. This can be particularly beneficial if you have specific needs or are particular with your likes and dislikes.
Moving Timelines
In a similar vein, buying a new house first can also make the moving process substantially easier. Once you’ve confirmed the possession date for your new home, you’ll have as much time as you need to plan and prepare for your move.
Buying a new house as part of a downsize? Consider these related posts from our blog.
- Is Downsizing Your Home Worth the Cost?
- Why You Should Downsize in the City
- How to Downsize Without Hassle
Make Your Move With Christensen Group
Whether you’re looking to buy, sell, or both, choosing the right Toronto real estate agent is essential.
At Christensen Real Estate Group, we’ve represented buyers, sellers, and investors for over 40 years. Our proven systems and unwavering commitment to providing top-tier service far exceed the competition. Leveraging our unrivalled degree of experience and market expertise, we give you a competitive edge in a famously cut-throat market.
Looking to break into the West Toronto market? Our team of industry insiders can help you reach your home-buying goals. Call us at 416.772.4723 or reach us by email at evan@christensengroup.ca.
