Buy First or Sell First? That is the question
Buying a home can be difficult. Home buyers must save for a down payment, win their home’s bidding war and even waive conditions such as financing or inspection - which were once staples of a home purchase offer.
But those who already own a home and want to downsize or move into a bigger home must make the decision to sell first or buy first.
The choice depends on the house, the location, and the buyers, realtors say, though there are some qualities that hold true for most situations.
"If it's a seller's market, then you need to be buying first. If it's a buyer's market, then you need to be selling first," said Ara Mamourian, broker and owner of Spring Realty in Toronto.
The number of new listings this August in the Greater Toronto Area was down 1.2 per cent year-over-year, according to the Toronto Real Estate Board's monthly market watch report.
The limited listings mean homes sell at a faster rate and buyers should prepare for long periods before making a successful offer on a new home.
Each market is different, take Calgary’s cooler market for instance, it holds an abundance of available housing, where homes tend to take longer to sell. There is no guarantee when a home is going to sell in this type of market. In this environment it would be better to sell first, and then choose from one of the many homes available, which to buy.
In this current market, those who sell first can find themselves with a time crunch, settling for a home that they otherwise wouldn’t buy or overpaying to ensure that their offer beats the competition. If you are going the route of selling first, arrange for a long closing – typically 60-90 days. This will ensure time for your current home to sell, while the other closes. It is a daunting thought to many home owners to be responsible for the cost of temporarily owning two homes – utilites, mortgage, property taxes, and unknown costs.
Let our Team of professionals help you figure out what you can afford, and what can bring you closer to achieving your real estate goals! Call us at (905)-426-7515 or send us a message http://www.maryroyteam.com/Contact.php