People often overlook the important question of what is the proper progression when trading homes. The two options are to either buy first before selling your home or sell your home first before committing to another purchase.
There are several important factors to consider when making this choice.
- The market – Is it a buyers or a sellers market? If it is a Buyers market and there is plenty of product on the market you may lean towards selling first. This still allows you the opportunity to look at what is available and develop there is the available selection of homes that would suit you. If it is a Sellers market then you may lean to buying first with the confidence that your home will sell in short order.
- Your equity position – Can you afford to buy without selling your current home? If you don’t require the equity in your current home to make your next purchase this opens up plenty of options on the sell side. Start by placing your home on the market while you are still living in it with select “staging” furniture (having packed away all the superfluous items). Your home will show great and if you find your home before it sells you have an option to rent it or sell it vacant which accommodates easy showings.
- Available accommodation – Do you have access to accommodation if required to bridge the gap? Can you stay with family for a month or perhaps it could be the perfect opportunity for that extended vacation in Europe that you’ve always wanted to take.
- The sale-ability of your home – How readily will your home sell? Is it the type of home that is in high demand or is it unique and require a unique buyer? These factors will determine the time on market.
- The Third Option – Buy a home subject to the sale of your existing home. This can be a good option that allows you to locate the perfect home and purchase it under a contract that is conditional upon the sale of your current home. The drawback of this scenario is that you may not be able to negotiate your best deal on the purchase given this condition. Additionally, once you have this contract in place you could be more likely to accept less than you normally would to sell your home because of the mindset you have created (anxiety of moving forward and getting into your new home). This option is best for those who are risk averse.
There are many other factors that an experienced Real Estate Professional will identify, such as what to do when building new, transferring to a new city or having a new child.
All of these come with unique sets of solutions that an experienced Real Estate Professional can help you solve to ensure your move is smooth, problem free and works to your best advantage.
Sano Stante Real Estate can assess your unique situation and provide expert advice to allow you to make the best decision for your future.