25 Aug Should You Buy or Sell First
You’ve decided it’s time to move. Whether you found a new job or are looking to downsize, you need to sell your house and buy another. So which comes first? The answer is that it depends on your situation. But here are some simple questions to ask yourself which will help point you in the right direction.
Will Your Home Sell Quickly?
If you live in an area where the housing market is red hot, it may be best to buy first. Keep in mind that every house is different so I’m assuming your home is an average, well maintained home compared to others in your area. Once you find the home you want, you should be able to list and sell your house quickly, and might even be able to encourage a closing date on the home you are selling that matches up exactly with your preferred move to your new home.
Can you Afford two Houses?
If the thought of paying property tax, maintenance, and utilities on two houses brings instant nightmares then you may want to sell your house first. Selling first will provide some financial flexibility since you will have the proceeds of the sale even if buying takes longer than expected. You can use savings or the equity in your current home as a deposit or down payment for your new home. This will also give you the flexibility of time to find the exact new home you want. If you need the proceeds from the sale of your current home for the down payment on your new home then selling first is your only option.
Are you Buying or Selling a Unique Property?
If you’re selling a unique property it may take much longer than others in your neighbourhood to move. You may want to list early and then consider buying in case you don’t get an early offer. Then again, if you’re a picky buyer and want unique features in your new home, you should buy that home when you find it. Another option you could consider as a picky buyer is to sell your house first and purchase a home that you can renovate to match your requirements.
Is the Housing Market Unstable?
If the Edmonton real estate market is shifting quickly and you can’t reasonably predict how much your current home will sell for, you should sell your house first. That way, you know your buying power when looking for your next home. Having the advice of a good agent is invaluable in this scenario as they will know your local market. Ask questions! An informed seller is a smart seller.
Is the Housing Market Against You?
If you’re selling in a market that isn’t attracting buyers, you should sell your house first. This is because it will be difficult to sell and you won’t be able to predict how long or how much you will make. If you’re in a seller’s market then you should focus first on buying because you may find it difficult to find your next dream home at a price you want (plus you know you can sell quickly when you find it). Whichever is going to be more difficult in the current market—selling or buying—should be the priority.
Get informed about your local market. Guessing at the value of your home and how long it will take to sell is just a bad idea. Work with a REALTOR® who can advise you on the right time to buy and the right time to sell. It could save you time, money, and perhaps most important of all, stress.