“Should we sell our current home before we put an offer in on another property or should we start looking for a new home before we put our home on the market?” This is a question we are asked frequently by home buyers who want to make a move and own the home they are living in. It is a great question! If you buy first clock starts ticking on selling your current home because you likely need that money to close the house you just purchased. If you sell first, are you prepared to rent somewhere until you find a home you like in a neighbourhood you want? There are certainly pros and cons of both selling first and buying first, the decision may just be decided by the real estate market you are in at the time. You may decide to buy first if the current market is described as a “seller’s market” where homes listed are selling quickly (meaning there are more people out looking for homes than people listing their homes). You may decide to sell first if you are thinking of buying a “subdivision house” that is fairly common in its layout (i.e., a three bedroom, two bathroom home in a well-populated subdivision)
Whether you decide to buy first or sell first you may want to opt for a longer closing date to allow yourself time to find your new home or to allow yourself time to sell your existing home. You can also opt to purchase a home with the condition that your current home sells, however if you choose to go this route, bear in mind that you may be going against buyers without that condition. Also that offer may give you a right of first refusal but you may have a restricted time period (usually between 24 and 72 hours) to come back with a clean offer with no conditions.
At the end of the day it is up to the individual and the market they are in as to which deal comes first, however if you buy first you have to be confident that you will sell.
To read a great article on this subject from the Financial Post click here.I hope you enjoy this article and that it gives you some pause for thought. For information about how the market is shaping up currently in the Barrie Area, please give us a call. We would be more than happy to discuss all aspects of buying and selling homes with you.
Until next time,
The Jamie Dann Team