This is one of the most commonly asked questions and one that deserves a thorough understanding. There is no ‘one size fits all’. Every home is different and every situation is different. Here are a few things to consider when planning your move;
Homeowners wishing to make a move are often perplexed by this one very important decision. The daunting realization that one could be left carrying two mortgages if they buy first and their own home doesn’t sell - or left homeless if they sell first and cannot find a home they like or can afford, can stop people in their tracks altogether. Carefully reviewing a few factors can help determine the best decision for your family. There is a solution - it just takes some careful consideration.
What are you Selling? What are you Buying?Understanding the supply and demand of the home you are selling and the home you are planning to purchase will improve your odds of a smooth move.
- If the home you plan to sell is not in huge demand in the current market, and homes like yours are taking a long time to sell.
- If you require every cent of your existing sale to make your move up to your next home, we would advise you to sell first in today’s market. This way you know the ‘money is in the bank’ before committing to a new place.
However, if what you’re looking for rarely comes up, you may want to look into buying first.
- If you are looking for something very specific and you have no intention of moving unless you find it.
- If your Mortgage Broker confirms that you are in a position to purchase and close your next home even if your existing home takes a while to sell - or doesn’t sell at all.
The first thing we advise our clients to do is speak to our trusted mortgage broker or their bank and complete a formal application. The mortgage rules and qualifications have changed so much in recent months that we cannot rely on a casual conversation from six months ago to secure the financing that may be necessary today.
With all this said, it can actually be easier to make a move in a slower more level market, than in a market like what we witnessed in early 2017. Yet it does require a sound and realistic understanding of the market at each end of your plan.
Our clients appreciate the time we spend with them before they find their next home, preparing them with all the information they need to make their next move a smooth one.
To learn more about the buying and selling process in today’s market including whether to sell first or buy first, how best to price your home and what to ask your bank or lender, call us directly at 416-230-8500. As always your call will be held in strict confidence and there is no obligation or cost for this service.