Whether you are downsizing, upsizing or relocating, the right approach will help you make that seamless transition. As you are deliberating on your next move, you are wondering, “Should I buy first, or sell first?”
While there is no right answer, it’s important to understand the pros and cons of each option. The better approach depends largely on the pace of the market for the property you are looking to buy, and the pace of the market for the property you currently own and are looking to sell. Speaking with a qualified real estate professional, can help you navigate which option is better for you and what contingency plan you should have in place if your closing dates don’t align.
Here are some important points to consider for either approach:
When to buy first:
- Buying first allows you to take your time to explore and find the right property. The house search is more enjoyable when you don’t have an impending closing date for your current home.
- You might have some pressure to sell your current property in time. If your dates for the sale of your current home and the purchase of your next home do not match, you can arrange for Bridge Financing. In order to qualify for Bridge Financing, you will need a firm Agreement of Purchase and sale for both transactions. Consult with your trusted Mortgage Advisor.
- It is important to know the pace of the market for the property you currently own. If your property is in demand and may be easy to sell, buying first may be the better approach.
When to sell first:
- Selling first is a better strategy in a cooling market, when you can get a better price selling now, and where we still have many options to choose from as a buyer.
- Selling first allows you to know the amount that you have to go towards the next purchase. You know how much funds you have available for your next purchase.
- If you sell first, you may have some pressure to buy. If you don’t buy in time, then you will have to find alternative accommodations in the short term and put belongings in storage in the interim.
You have to be prepared for viewings and leave your home in pristine condition for each showing.
Regardless of the market conditions, the most risk-averse approach is to Sell First. If you would like to take your time to buy, you may consider leasing in the interim, ideally on a month to month basis, while you are searching for your next home to purchase.