Should you buy first then sell? The Pros and Cons!

The ultimate catch 22 – do you buy a new home first then sell your current property or sell first then search for a new one?
Each approach has its pros and cons, so what’s best for you?

Your options:

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

  1. If you can carry two properties temporarily with little or no bridge financing, buy the home you love first.
  2. Closing dates can be a sticking point for buyers and sellers,  try negotiating a long closing date.
  3. 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.
  4. Before you’re pressured to do so, ask yourself what you’re willing to compromise on and what’s non-negotiable.
  5. 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. 

 

 

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Kyla Vavala

Kyla Vavala

Sales Representative
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*
Contact Me