In a normal world, under normal circumstances, a homeowner would often decide to sell their existing property before beginning the process of buying a new one. However, “normal” isn’t usually a thing when it comes to real estate, especially in the current market.
There could be any number of reasons why you might want to buy a house in Etobicoke before selling yours. However, this post isn’t about the “why.” Instead, we’ll talk about the advantages and a few of the risks and the best ways to protect your interests throughout your transition.
How much will your home earn in today’s market? Find out by booking your free home evaluation right here.
Speed Is of the Essence
If you put an offer in on a new house before yours sells, you might need to rush to find a buyer so your transaction can close. This may not be an issue if you’re fortunate enough to be able to carry two mortgages at once. However, few people can do that comfortably, and you likely don’t want to even if you could.
If a potential buyer or their agent senses that you are in a predicament and need to sell quickly, they immediately have more negotiating power. They’re now in a position to ask for concessions on the closing date or to pressure you for a lower price.
One of the best things you can do if you plan to buy before selling is to be prepared. Your house should be primed to sell quickly, even if your listing isn’t yet on the MLS®. This means you’ve already gone through the process of cleaning, decluttering, staging, and you have high-quality images and videos ready to go.
A little market research will go a long way to helping you get great results when buying and selling your home. Get started with the posts below:
- Real Estate Jargon-What It Really Means
- Know the Real Estate Cycles and Hack the Market
- Is It a Good Time to Buy or Sell a Home in Etobicoke?
Moving Day Is More Relaxed
The main advantage of buying a house before selling is it makes for a more relaxed moving experience. If you want to, you might even spread the process over multiple days. The ability to pack and move at your own pace means less stress and a reduced risk of any items being lost or damaged in transition.
For some homeowners, this benefit is well worth the cost of two mortgages for the short term. The question becomes how long you will have to wait before your house sells and whether you face the potential for financial loss.
Are you ready to start looking for your next home? Become a more informed buyer by reading the posts below:
- 10 Ways to Get Your Offer Accepted in Today’s Toronto Market
- How Not To Overpay For Your New Home
- What Compromises to Make When Buying A Home
Consider the Financial Implications
Buying a house before selling yours can either be financially risky or rewarding, depending on your home and the market itself. In a seller’s market where real estate prices are rising quickly, buying first can make perfect sense. It means securing your new home before prices rise again. If all goes well, you also stand to earn more on your sale the longer you wait.
The opposite is also true. Buying first can mean paying more than you would have if you waited if the market turns. If that happens, it can take longer to sell your existing home while leaving you with less of a profit than you may have hoped for.
Though selling first is widely considered the safest path, either option has pros and cons. Whatever you decide to do first, buying and selling in the same market reduces your risks significantly.
Assess the Market
Analyzing the current market is always an excellent idea before buying or selling a home under any situation. If you’re considering buying first, it’s even more important to know what’s going on.
Take a look at what homes are available for sale in your area. A high level of competition from other sellers could indicate a buyer’s market, which may mean your home takes longer to sell. You’ll also want to have an idea of how much similar listings are selling for.
It’s no guarantee that your house will earn a particular amount, but it is a good indication of what you can expect. Lastly, remember that outside factors such as interest rates and other world events can have a sudden and dramatic impact on the market.
It’s not unheard of for a fast seller’s market to quickly change in favour of buyers and vice versa. Though no one can predict what will happen, having all of the facts will help you make the best decision and achieve an ideal outcome on both sides of your transaction.
Research and preparation are essential when you’re counting on results from your home sale. The posts below can help:
- Things to Avoid When Selling a House
- How to Sell a Less Than Perfect House
- What Are The Fastest Ways To Add Value To Your Home When Selling?
Work With an Experienced Realtor®
A real estate transaction can be complex at any time. A successful outcome means obtaining the highest possible price when selling your home – while paying the lowest amount for your new property that the market allows. This is not an easy feat at the best of times, and is even more challenging during uncertain conditions.
This is why it’s essential to work with a local real estate agent who is up to date on the latest trends and knows the market inside and out. Expert negotiation is the key to getting the results you want at every step during your transition.
Do you have questions about buying or selling in the market today? Our Etobicoke real estate agents are happy to guide you to a successful outcome. Reach out today at 647-282-7653 or email contact@thompsonsells.com with any questions or to get started.
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