Your family is growing and you need a home that can grow with you. Now that you are starting to think about moving, you’re left with the question “Should I Buy first or Sell first?” Talking to an experienced Realtor in advance is a good way to find out if you should Buy first or Sell first, but here are a few tips!
To Buy first
Buying a home first can make your house hunting experience more enjoyable. Without having 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 can wait for the next opportunity to come up. You won’t have to rush to another home that you may not want as much.
A downside to buying first is that if you are unable to sell your home fast enough, you will find yourself owning two homes at once. This result could mean paying two mortgages at the same time, plus all the other additional costs of home ownership.
As a buyer with an existing home to sell, you can protect yourself by making your offer conditional on the sale of your current home. That means if you’re unable to sell within a specified period of time, you’re able to back out of the transaction. However, it’s worth pointing out that this condition will likely make your offer less attractive to the seller, especially if you’re buying in an area with a hot market like the Waterloo Region!
To Sell first
The biggest benefit of selling first, aside from removing the risk of owning two homes at once, is you’ll know how much money the sale brought in, which will help determine how much you can afford to pay for the next place.
As helpful as that is to know, the challenge is that you’ll find yourself in a race against the clock, with your closing date looming and potentially no home to move into when you move out of your current one. If you’re not careful, you may end up rushing the buying process and settling for a home that isn’t ideal for you, or paying more than you planned because you feel pressured.
Have a backup plan
Regardless of which route you choose, it’s a smart idea to have a backup plan in place, in case you are left with two homes, or no home, for a period of time.
If the sale of your home closes first, you might consider a short-term rental or moving in with family or friends. This could be better than settling for a less-than-ideal home because you are rushed.
If you have any questions about real estate — do not hesitate to call me at 519-624-5555! I’m here to help!