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As a homeowner entering the market, you are faced with a difficult question:
Do you buy your next home before selling? Or do you sell your current home before buying?
It All Depends
The majority of our RE/MAX Influencers agreed that each situation is unique. For example: What are the current market conditions? And are you financially capable of carrying two properties with ease?
“It absolutely depends on the market situation,” says Justus Smith, RE/MAX Crown Real Estate (East). “If the client is selling in a seller’s market, then they would likely want to buy first. However, if they are selling in a buyer’s market, it’s better to get their property sold first.”
Pros of Buying First
By buying first, homeowners are less rushed to find the right home. They can spend time making sure the new house fits as many of their needs as possible.
“The ideal situation is to purchase a home and then sell your current property,” says Sarah Leib, RE/MAX River City.
“Buying without having to sell first allows buyers to find the right home at their own pace,” adds Shauna Bailey, RE/MAX Crown Real Estate North.
Although buying first has some advantages, this situation isn’t financially feasible for everyone. There may be a possibility to add in a sale of home condition to the offer; however, competing offers without that condition will likely be more desirable.
“Buyers should consult with their lender to discuss the possibility to arrange interim financing. Enabling them to make an offer without this condition with the intention of ultimately selling their current home once they confirm the new purchase,” says Glen Darough, RE/MAX RHC Realty.
Pros of Selling First
Many aren’t able to afford the cost of carrying two properties, and trying to do so may cause significant stress.
“The risk of having to discount your home to create a quick sale just isn’t a pleasant experience.” says Eric Steinbach, RE/MAX Kelowna. “(Clients) can negotiate a better purchase price being strong on finance.”
“It really depends how comfortable my clients are to have the possibility to have to bridge finance or carry two mortgages. I always suggest to sell first, but there are a lot of buyers out there who are scared they won’t find what they are looking for,” says Elio Parente, RE/MAX City Realty. https://blog.remax.ca/buy-first-sell-first/