Are you thinking about buying a new home? If so, you may be wondering about the logistics of selling your old home. Which should you do first – sell or buy?
The Dilemma
‘If I buy first, I just might not be able to sell my current place, and if I sell first, I just might not find a suitable property to buy.’ So, what should you do?
Here’s a foolproof way for you to decide.
Determine which of the following would be the most difficult for you right now, in today’s Toronto market. Would it likely be more difficult for you to sell your home or more difficult for you to find a home to buy that fulfills your needs?
Then do that which is most difficult first.
Understanding Toronto’s Current Market
Understanding the real estate market can be tricky. Not only does the market constantly shift but what is happening in one neighbourhood at one price point can be drastically different than what is happening in another neighbourhood at another price point. And what we see happening in the freehold market (detached or semi-detached homes) can be different than what we are seeing in the condo market. Agents are at the forefront of this activity and have direct exposure, so it is best to speak to one to accurately understand what you can really expect within the criteria which applies to you.
Selling First: Pros and Cons
Pros:
- Can sell for the amount you find acceptable
- Know how much money you have for your new purchase
- Can time closing to avoid bridge financing
Cons:
- May feel pressured to make a rushed purchase. This can be mitigated with a long closing.
Buying First: Pros and Cons
Pros:
- Able to calmly find, negotiate, and secure a home
Cons:
- You don’t know what your home will sell for. Mitigate by using a realistic selling price for your home when determining your budget.
- Feel pressured to sell. Mitigate by buying with a long closing
Speak with a Sage agent to help you determine whether buying or selling will be more difficult. From there, we can help you come up with a good plan of action. However, no matter which you do first, you’ll want the timing of both your purchase and sale to occur in the same general marketplace timeframe. We can help make that happen.
