The decision to buy or not to buy before selling isn't an existential dilemma like Hamlet's famous question "to be or not to be," but it is still an important decision that you should not enter into lightly.
Regardless of market conditions, when you’re thinking of selling your home and buying another, you face the inevitable question: Should I list my property first or buy my new home first?
Let’s take a look at both options.
If you attempt to buy a property before listing your home, you run into a couple of challenges.
First, sellers may not take you seriously as a potential buyer. After all, you haven’t put your own home up for sale. As far as they’re concerned, you might merely be testing the market.
Second, your property might not sell as quickly as you thought it would. If there is an early closing date on the home you purchased, you might end up owning, and paying a mortgage on both properties, at least until your home sells.
If, on the other hand, you list your property before buying a new home, sellers will know you’re serious. That puts you in a competitive position in the event of multiple offers.
Also, if your home sells quickly, you’ll have the peace-of-mind of knowing exactly how much of a new home you can afford. You’ll be able to shop with confidence.
Of course, like the first option, there is a chance that the closing dates won’t match and you’ll end up owning two properties for a period of time. However, solutions such as bridge financing are available to help.
So, there is no perfect answer. A lot depends on the state of the local market. In our current Vancouver market conditions most people are choosing to buy first becuase listings are selling quickly. However, it is important to note that not all listings are selling. Check with me to find out what the average days on market is for sales in your area.
Another factor that your decision will depend on is your own tolerance for uncertainty. I have personally expereicenced both options, buying first and selling first. I definelty know which one I prefer! If you are interested, give me a call and I will share my experiences with you and help you decide which option is best for you in your particular circumstances.
Thinking of buying or selling, or both? Remember, all you have to do is imagine your future; I'll help you find it!