Real Estate Blog
Sell or buy first?
Spring is around the corner. This is the time of year when you may be considering selling your current home to buy another, bigger or smaller, closer to work, school, or with office space. In short, better suited to your daily life.
Now you're wondering: what is the best way to proceed? Is it better to sell or buy first?
It's a very good question! On this point, my maxim is: "Know the state of the market and, above all, know yourself." Then the conditions will be in place to properly assess the implications of each option.
The best strategy
Therefore, it is uncertain how long it will take you to acquire the property of your dreams, at the price you want.
In most cases, therefore, logic would dictate that you find a new home before putting your current property on the market. This way you avoid being left without a roof over your head or having to quickly buy a property that doesn't really suit you.
That's the theory, anyway. Because in reality, there is no such thing as a win-win formula that works for everyone. Your best strategy depends largely on your financial situation and risk tolerance!
Your personal finances
Where do you stand? Can you cover the costs of two properties if you buy first? And for how long? We're talking about mortgages here, of course, but also insurance, taxes, energy, maintenance…
Or perhaps you already have a second home where you can stay until you find the rare pearl?
Your risk tolerance
And while some may be anxious about the idea of being "homeless," others will be confident that they will find a suitable abode in due course.
You need to do some soul-searching. The idea here is to identify the option that makes you comfortable and to avoid as much as possible circumstances that could cause you unnecessary stress.
To make sense of it
I can also suggest options that you might not have thought of. Here are some:
• A promise to purchase conditional on the sale of your property. If you buy first, you have more time to sell. However, in today's market, where multiple bids are abundant, a seller will prefer an offer without this condition.
• Negotiating a possession date to your advantage. If you sell first, you save time finding your next property by pushing back the date.
• The bridge loan. This allows you to finance the down payment on your new property from the equity in your current property while you wait to sell it. To be discussed with your mortgage lender.
To sell without making mistakes, make the right choice. Contact me now!
Now you're wondering: what is the best way to proceed? Is it better to sell or buy first?
It's a very good question! On this point, my maxim is: "Know the state of the market and, above all, know yourself." Then the conditions will be in place to properly assess the implications of each option.
The best strategy
In recent years, the resale property market has been more than favourable to sellers. The supply of properties for sale is at its lowest and prices are on the rise. Because there are always so many buyers, overbidding has become commonplace.
Therefore, it is uncertain how long it will take you to acquire the property of your dreams, at the price you want.
In most cases, therefore, logic would dictate that you find a new home before putting your current property on the market. This way you avoid being left without a roof over your head or having to quickly buy a property that doesn't really suit you.
That's the theory, anyway. Because in reality, there is no such thing as a win-win formula that works for everyone. Your best strategy depends largely on your financial situation and risk tolerance!
Your personal finances
Some people can afford anything; others nothing at all. The vast majority of people navigate between these two waters.
Where do you stand? Can you cover the costs of two properties if you buy first? And for how long? We're talking about mortgages here, of course, but also insurance, taxes, energy, maintenance…
Or perhaps you already have a second home where you can stay until you find the rare pearl?
Your risk tolerance
While some people will find it feasible to temporarily assume the costs of two properties, others will think it is an unnecessary expense and will want to sell first.
And while some may be anxious about the idea of being "homeless," others will be confident that they will find a suitable abode in due course.
You need to do some soul-searching. The idea here is to identify the option that makes you comfortable and to avoid as much as possible circumstances that could cause you unnecessary stress.
To make sense of it
If the course of action seems unclear, I am here to examine the situation with you, weigh your options and accompany you in your choices.
I can also suggest options that you might not have thought of. Here are some:
• A promise to purchase conditional on the sale of your property. If you buy first, you have more time to sell. However, in today's market, where multiple bids are abundant, a seller will prefer an offer without this condition.
• Negotiating a possession date to your advantage. If you sell first, you save time finding your next property by pushing back the date.
• The bridge loan. This allows you to finance the down payment on your new property from the equity in your current property while you wait to sell it. To be discussed with your mortgage lender.
In any case, having an experienced broker at your side can be very reassuring! Because you are the focus of my work! My mandate extends well beyond the sale and purchase of properties, it also consists of ensuring that your transaction goes as smoothly as possible.
To sell without making mistakes, make the right choice. Contact me now!
