Should I Buy Before I Sell?!
This is an age-old debate. It comes up all the time. You are already in the Real Estate market and now you are looking for a new home. Maybe it’s time to upgrade in the market from a condo to a townhouse. Maybe it’s time to change neighbourhoods as your kids are about to head to school. Whatever the case, when you get to this point you are going to ask if you should buy before you sell.
The true answer to this age-old debate depends on some key factors. Like if you are in a hot market, say you own a condo in Vancouver and are buying a detached house. Odds are that your condo, if priced right and staged well. Plus a key marketing plan, it should have a multiple offer situation and probably in the first weekend on the market.
This is when it’s good to know the market and its trends. As with this scenario, you may be comfortable finding that new house first. Then put your condo up right away afterwards. Here’s some tips and info that may help a bit. But always remember to consult your professional Realtor. They can help you along the way.
Why You May Want to Buy Before Selling:
- Find That True Dream Home – if you don’t have to sell right here right now, the ball is in your court. Meaning that you can literally spend months or years searching for your dream home. That could be a good thing or an excuse that helps you procrastinate.
- Buying first can make the house hunting experience more enjoyable – Without a closing date looming on your existing home, you’ll have time to wait until the right home comes up for sale. It can also be less stressful knowing that if your offer is unsuccessful, you have time to wait for the next opportunity to come up.
- Time for Renovations – having the luxury to replace the electrical and kitchen while you aren’t living in your new home can be a godsend, especially if you have young children
- You can add a condition to any offer you make – In addition to the highly recommended conditions on financing and inspection, you can also make your offer conditional on the sale of your current home. Please keep in mind that it’s worth pointing out this condition will likely make your offer less attractive to the seller because of the uncertainty for them.
Why You May Want to Sell Before Buying:
- Know exactly how much money you have to spend – as soon as your property is sold, you’ll know how much you have for the down-payment on the new house. That’s a great thing when it comes down to it.
- Avoid the stress of your house or condo NOT selling – there’s a huge stress load that you need to prepare yourself for when it comes to this. What if your place doesn’t sell right away? Odds are if you were thinking of buying first before you sell. You are going to be super anxious at this point. Maybe avoiding it is a great thing?
- Avoid bridge financing costs – this is the money the bank lends you to cover the equity in your house when you close on your purchase before sale, i.e. the extra cost of carrying two mortgages temporarily.
- Declutter Your Life – as with most moves, you’ll be decluttering your life. But if you sell first you’ll now have that chance to sell off some of those items. Maybe you were thinking of that new couch or new kitchen tables. This may the time to do it. Then when you buy that new home you can add new items that make sense to its layout. There are times when you buy before you sell, that you’ve made the closing and possession dates tight. Meaning that you may be packing and moving close to or on the dame day.
- Sell For More – this is a key element to most peoples life. You’ve gained memories and equity in your current home. You probably want to make some good money off your investment. If you sell first you have the luxury of negotiating terms and getting as much as you can for your place. The stress of buying first sometimes means that you have no choice but to take that first offer.
There is so much more that can be added to this. But for now, this is a good start. If you are ever looking for some answers to your questions. I’m always here to help. Contact me here.