Should you buy or sell first?
Are you looking to sell your property and wondering if you should buy or sell first? There are advantages to both approaches, but because every situation is unique, there are no right or wrong answers.
Ideally, you should anticipate your acquisition project as much as possible by putting your property up for sale early enough to give you time to find a buyer.
Selling before buying
- Peace of mind: you don’t have to bear the burdens of both properties. You will know the exact amount from the sale that is left in your pockets. It is useful especially in case of tight budget. When you sell to buy back, it is common to aim for a larger property, and therefore more expensive! By starting with the sale, you know the amount of your personal contribution and you are able to accurately assess the amount of your loan to finance your new acquisition.
- You will be able to focus on buying your new property. Thus, you will be able to orient your research by selecting the properties corresponding precisely to your budget. You will be efficient in your research and if your Sutton real estate broker finds your favorite, you can immediately make an offer to buy!
- This could strengthen your bargaining power: an unconditional offer to buy is attractive to the seller.
- You have a lot more pressure to find yourself a new property before the sale of your current property closes.
- The price could exceed your original purchase budget.
Buying before selling
If you want to buy before you sell, consider the things below:
- You do not know the date or the sale price of your current property. You must therefore have a great financial capacity able to bear the costs higher than expected.
- You will have more flexibility to plan the dates of occupancy so as not to move to a temporary location: a single move.
- At some point, if your property doesn't sell quickly, you may feel rushed to sell and be tempted to lower the price to maximize your chances of selling.
By choosing this option, you must therefore have a high tolerance for risk.
Your Sutton real estate broker will assist you in choosing the method to consider according to your situation and your needs.