You’re ready for your next home and can’t stop thinking about it. But you’re wondering if it is better to sell before you buy.
The best way to decide if you should buy or sell first is to see if the market favours buyers or sellers. Ideally, you want to sell first in a buyers’ market and buy first in a sellers market.
In a buyer’s market, inventory is high, prices are low and homes stay on the market longer. It may be ideal to sell your home first. It will allow you to use the cash from your sale as a down payment and financing will be easier.
In a seller’s market, there is low inventory and more buyer competition. Buying first may be the best option as your home should sell quite quickly and you avoid the possibility of moving twice or renting in the interim. Purchasing before you sell may be the only way to ensure you don’t miss out on that special property.
Make sure to align both the transactions for a smooth transition. If the timing doesn’t work out, your agent can negotiate a rent back or negotiate a longer possession date while you look for your next home.
There’s no definite order when buying and selling. It truly depends on your finances, individual situation, moving timeless and the market conditions of your current and future homes.
If you’re thinking of buying and selling, I’d be happy to talk through your options and help you decide if you should buy or sell first!
Oakwyn Realty Downtown Ltd.