This week, Scott Bollinger, Licensed Broker at Commonsense Network brokerage, part of the ComFree family in Alberta, is providing some important tips for selling your home. You can hear his Real Estate Minutes on the radio!
“Do I sell first, or buy first?” asks Scott Bollinger. “It’s a lot to consider. Buy first and you’ll have to shop around. But if you don’t sell your home quickly, you could end up losing money.”
“If you sell first,” he continues, “you’ll have more time to entertain offers but you could end up settling for another home that doesn’t have all the features you want.”
It’s a huge decision. Here is our list of pros & cons of buying a new home before selling to help you consider.
SIGNS YOU SHOULD BUY A HOME BEFORE SELLING:
1- You have found your dream home
It happens to some of us where we walk into a home and it is everything we’ve ever wanted and then some. And because you never know who will snap it up in an instant, it’s best you jump on your dream home if you don’t want to have any regrets.
2- The price is perfect
For a lucky few, sometimes we visit a home we love and discover that the owner is pricing it at a cost that is just too good to be true. If you find yourself in such a situation, it may be wise to pounce on the deal rather than sit on it.
3- It’s a sellers’ market
If there is a high demand for homes, then there’s a good chance that buying before selling would be a wise decision because not only do you get a new home quickly, but you can likely unload your old home in a heartbeat.
4- You can afford to do it
If you’re Mr. Moneybags, then having two mortgages on two homes will not leave you begging for change in the subway on weekends. But before you leap into this, do some homework and find out how quickly homes in your area are selling. Then visit your financial planner to devise a plan.
SIGNS YOU SHOULD SELL A HOME BEFORE BUYING:
1- You’re not willing to budge on price
If you are not flexible on your asking price, then it may be best to sell before buying a home because when you buy first, there’s a good chance that, if no one is biting, you’ll likely have to bend on your asking price.
2- You don’t mind moving around
If you sell your home first, you can always add a contingency in the contract that allows you to stay in your home until you find a new home, but there’s also the option of finding a temporary place [read: parents’ house] until you move into your new home.
3- You don’t like stress
If the idea of buying a home before you’ve sold your own keeps you up at night, then don’t put yourself through all that stress. Take your time, put your home up for sale, and once that’s a done deal make your offer on the home that piques your interest.
4- Money is super tight
If you are barely making ends meet, then it would probably be incredibly difficult to maintain two homes for any period of time. Opting to sell your home first and have a little cushion in the bank before closing another home deal may be best in such a situation.
Buy a home before selling or not?
So did you make your decision? Can you offer up even more tips? You’d be doing all buyers and sellers a huge service. Leave your comments below.
If you’re looking to buy a home in Canada, feel free to visit ComFree.com. Tell ’em I sent you.