Spring will soon be here. It’s the time of year when you’re thinking of selling your current home to buy a new one, perhaps bigger or smaller, closer to work, school, or with a home office. In short, better suited to your daily life.
Then you ask yourself: what’s the best order to proceed? Is it better to sell or buy first?
The question is very relevant! On this point, my motto is: “Know the state of the market and, above all, know yourself.” This way, you’ll be in the right frame of mind to properly assess the implications of each option.
The Best Strategy
For a few years now, the resale real estate market has been more than favorable to sellers. The number of properties for sale is at a record low, and prices are on the rise. But since buyers are still very much present, bidding wars have become commonplace.
As a result, the time it will take to secure the property of your dreams at the desired price is uncertain.
In most cases, the logical course of action would be to find a new home before listing your current property. This way, you avoid ending up without a roof over your head or having to quickly buy a property that doesn’t really suit you.
That’s the theory. In reality, the winning formula that suits everyone doesn’t exist. Your best strategy largely depends on your financial situation and your risk tolerance!
Your Personal Finances
Some people can afford everything, others nothing at all. The majority fall somewhere in between.
Where do you stand? Can you handle the expenses of two properties if you buy first? And for how long? We’re talking about a mortgage, of course, but also insurance, taxes, utilities, and maintenance…
Or maybe you have a second residence where you could live while waiting to find the perfect home?
Your Risk Tolerance
While some find it reasonable to temporarily shoulder the expenses of two properties, others will think it's an unnecessary expense and will want to sell first.
And while some are anxious about being left without a home, others are confident they’ll find the perfect one in due time.
It’s important to do some introspection. The goal here is to pinpoint the option that makes you feel comfortable and avoid situations that could cause unnecessary stress.
To See Clearly
If the way forward seems unclear, I’m here to review the situation with you, weigh your options, and guide you through your choices.
I can also suggest avenues you may not have thought of. Here are a few examples:
• A conditional purchase offer based on the sale of your property. If you buy first, you have more time to sell. However, in today’s market where multiple offers are common, a seller will prefer an offer without this condition.
• Negotiating a possession date that works in your favor. If you sell first, you can gain time to find your next property by pushing back this date.
• Bridge financing. It allows you to fund the down payment for your new purchase using the equity from your current property while waiting to sell it. This can be discussed with your mortgage lender.
In any case, having an experienced broker by your side can be incredibly reassuring! Because at the heart of my work, there’s you! My mandate goes well beyond buying and selling properties; it’s also about ensuring your transaction proceeds as smoothly as possible.
To sell without errors, make the right choice. Contact me today!
