Should You Buy First or Sell?
As a homeowner, there is a time when you may want to upgrade or downsize your present home. You face the choice – should you buy the new home before selling the current one, or the other way around?
Frankly, there is no answer to this question – it all comes down to whatever makes you the most comfortable. Both have pros and cons, and here are some to consider:
If you buy first.
- If you have found the home you are looking for with all the features you like, and the price is right, there may be a lot of pressure on you to sell your home fast. As a result you may have to give in on price or make other concessions.
- If the local real estate market is hot, you might feel safer buying first.
- If your home is priced at the market price, there is a good possibility that it will sell quickly. If it needs a lot of fixing up or is the most expensive home in the neighbourhood, it may languish on the market or sell below asking.
- If you buy first and your home does remain on the market for a long time, the worst-case scenario is you’re stuck with double mortgage payments. You may be forced to sell below your asking price.
If you sell first.
- If you have already sold your home, you have the luxury of deciding on how much you can afford on your next home.
- By selling first, you have the awareness of the condition of your own home’s sale, such as the closing date, when you have to give up possession, etc. Armed with this information, you can make an informed offer.
- If you can’t get possession of your new house before leaving your current one, or even worse, can’t find what you’re looking for, you’ll need temporary housing. Have you budgeted for a short-term rental, and what will you do with your furniture while you’re waiting?
To learn more about Virani Real Estate Advisors or to discuss a property sale or purchase, email us at [email protected], visit one of our offices, or call 604-913 1000.