Pros to selling first
- You know exactly what your budget for a your new home is.
- You’re able to make a firm offer on a new home with a closing date that works for you.
Cons to selling first
- You need to find and close on a new home before the closing date for your sold home – forcing you to potentially compromise on the kind of home you buy or the neighborhood you and your family want to live in.
- If you don’t find a new home in time, you’re faced with the unlikely scenario of negotiating to extend the closing date on your sold property, or finding a short-term rental to live in while you continue your search.
Pros to buying first
- You only buy the house you love if and when you find it, you’re under no pressure to settle because time is running out on a sold property’s closing.
Cons to buying first
- You may have to finance two homes if selling your current one takes longer than expected.
- You could have to sell your current home for less to avoid losing a sale, that might require a larger down payment or an increase on your new property’s mortgage.
5 more tips
- If you can carry two properties temporarily with little or no bridge financing, buy the home you love first.
- Closing dates can be a sticking point for buyers and sellers, try negotiating a long closing date.
- Connect with a real estate agent you trust well in advance of making any move so you fully understand the buying and selling realities in your area.
- Before you’re pressured to do so, ask yourself what you’re willing to compromise on and what’s non-negotiable.
- Get your home appraised by an experienced agent with knowledge of your area.
If you are thinking of selling or buying, getting a free market evaluation of your property should be one of your first steps. Call me and I will be happy to give you an informed overview of the value of your home, and of the real estate market in the Barrie and surrounding area.