My favourite part of real estate transactions (besides the fabulous
clients that I work with…of course!) is the planning phase. The
questions, the analysis of market conditions, pricing and strategy are
aspects that produce a natural high for me. My clients value
information and I am a generous provider and interpreter of
information that helps in the decision making process.
There are so many questions when one begins their real estate journey
– however, one of the most common questions I receive is whether a
property owner should buy or sell first. I will start by saying that
there is no real right or wrong answer to this question…no black and
white…all grey…and while there are many potential issues to be
discussed, these 5 considerations provide valuable talking points that
will help facilitate in your decision making.
1- Market Conditions
Is the market more skewed towards Buyer’s or Seller’s?
Are there homes readily available in the area where you want to purchase?
What about in the area you will be selling?
What is the average days on market in each case?
2- Property Location and Type
Take a closer look at the property you will be selling.
Is it a property that may (or may not) appeal to the masses?
Is it located on main or busy street? Is it a condominium located in a
building where there is currently a lot of other available units?
Is your current property a co-operative or another form of
“alternative” ownership? i.e. Will there be any financing challenges
for Buyer’s to over come?
3- Financial Considerations
if your home takes longer to sell than anticipated are you able to
close your new home AND afford the monthly expenses around two homes?
The answer to this question should involve consultation with your
mortgage broker and this is a wise discussion to have before you
encounter the situation.
4- Timing Between Buying and Selling
Will you be buying and selling in the same real estate season?
Is your current home ready go on the market?
If you have purchased a new home in advance have you given yourself a
long closing period so, that you have time to work your way through
any unforeseen obstacles.
5- Personal Comfort
are you someone who has to know exactly what funds are coming in
before you are comfortable purchasing a new home?
Would you consider moving twice…i.e. renting a property if you can
not find a home to purchase?
How tight is your budget?
Can you afford to take less than market value for your home if you
need to sell to close your new property?
All of these questions discussed with your trusted real estate
professional will lead you to a strategy for the purchase of your new
property, and the sale of your current home…in whatever order you
determine. Once you know the strategy, the planning can begin…and a
detailed plan is the corner stone of all successful real estate
endeavours!