Should I buy or sell first?
The question asked by nearly every home seller. The answer depends on your risk tolerance level and personal circumstances. Review the following scenarios to decide what might be right for you
Scenario 01
You are in a seller’s market
Typically you want to start with the transaction that will take the most amount of time. This means if you are in a seller’s market, you would want to buy first since finding the right home to purchase will likely take more time than it will to sell.
Answer: Buy first
Scenario 02
You are in a buyer’s market.
On the flip side, if you are in a buyer’s market, you will usually sell first and then buy.
Answer: Sell first
Scenario 03
You are able to write a subject-to-sale offer.
A subject-to-sale offer is the best of both worlds, it allows you to purchase a home on the condition that you are able to
sell your own. Not all sellers will accept a subject-to-sale offer, but they are more likely to do so in a buyer’s market.
Answer: Buy and sell at the same time
Scenario 04
You can afford to own two properties.
If you can temporarily afford to pay the mortgage on two properties, you eliminate some of the risk involved in purchasing before you sell.
Answer: Buy first
Scenario 05
You have someplace you could live in the interim.
Whether you sell or buy first, there is a small risk that the possession dates on both properties may not line up. Have a backup plan for where you can stay while waiting to move into your new home.
Answer: Sell first
Phone: 705-927-6236 // bradpsinclair@gmail.com // www.bradsinclair.ca // www.kawarthacottagesforsale.com
