Do I sell my home or buy a home? What Comes First?
With the London, Ontario market being incredible active over the last few years this is a questions that we have got almost every time we speak to clients about moving home. The reality is that every situation is different and a lot of the ultimate choice comes down to a leap of faith.
When To Decide
This is not a choice to be made quickly. Carefully consider the following before you make your choice
- Do you need to move now? Can you wait for the market to balance?
- Does your financial situation allow to compete in a busy market?
- What tolerance for risk do you have?
- Can you afford to bridge a mortgage?
- Do you want to potentially rent somewhere short term?
- Do you have someone you can stay with if closing dates don’t match?
- Do you have a clear understanding of the current market?
Can I not just match my selling and buying dates?
In a heated market this is very difficult to achieve. If you list your home first and sell then you have your first date set. The problem arises however if the home you are trying to buy has decide to buy first before selling. Now we have competing dates that both parties want to match.
This is all becomes part of a negotiation and you need to know the financial implications for you and your family. Sometimes the dates will magically align more often than not someone has to give.
Overall Pros & Cons
Buy First Pro
- You can take your time searching for a home
- You have time to prepare your house properly to sell
- You can carefully consider various property types
- You can carefully determine which neighbourhoods you like
Buy First Cons
- Deposit Money, is it tied up in your home?
- Closing and carrying costs if your home doesn’t sell in time
- Can you afford to pay for two homes in the unlikely event your home is not sold in time?
Sell First Pros
- Control of the sales process, no rush!
- Clear picture of your finances once a sale price has been agreed
Sell First Cons
- Once a deal is done the clock starts ticking, you need to find somewhere to live
- You may feel pressure and convince yourself to buy a home that you don’t really want
- You may need to move out and rent for a while
In closing you can see that no easy solution exists to this problem. Trust your instincts and trust the advice of your Realtor.