First Time Home Seller Series:
Part 1:
Do we buy or sell first?
When it comes to navigating the Vancouver real estate market there are many questions that come up. The question “do we buy first or sell first” when it comes making a plan to upsize, downsize or move laterally in the real estate should be one of your first questions. This question will dictate many things including, when you should start looking at homes, when you start preparing your own home for sale and how your conversation with a mortgage broker will go.
What are some pro’s and con’s of each strategy? Let’s break them down.
Buy Before You Sell:
Pros:
- You can be a bit more picky as you are not in a rush to get out of your house
- You can be more selective on price as you aren’t facing a time crunch
- In a rising market you may be able to buy low and sell high
Cons:
- You won’t know exactly how much money you’re getting from your current home
- You may risk not selling your current home in time to close on the new home
- In a declining market you may buy high and sell for lower later on
Sell Before You Buy:
Pros:
- You know exactly your budget so you can shop with concrete numbers
- There is no rush on the sale, meaning you will not ever “have to sell”.
- In a declining market you may sell high and buy once prices have dropped.
Cons:
- If you cannot find exactly what you want, you may need to find interim accommodations such as family or a rental
- In a rising market, you may sell low and be stuck buying in a higher or more competitive market
Overall there are a few different considerations when deciding if you are going to buy or sell first. The advice that we will likely give you will largely depend on the market that you are selling in and the one that you are buying into. If you are really stretching your budget there is a good chance that you will need to sell first to have a good understanding of your actual budget on the purchase.
Other factors to consider will be if you have a place to live in between selling and when you buy if bridge financing is an option, and what your risk tolerance is.
We guide our clients on a weekly basis on what strategy is best. What strategy is right for one family may not be the right strategy for another.
If you have any questions about how to navigate the market or what strategy is best for you feel free to give us a call or send us a message. We are here to help.
