Buying and selling houses is not an easy road to navigate – in fact, to buy or sell first is the question we get asked most when meeting with potential clients. Current homeowners have to think of many new things to tackle during the home buying process – it’s a competitive real estate market in Toronto, so having your down payment in order, your pre-approval in hand and a good sense of what you’re looking for are all vital for a successful and exciting search.
If you own your home, sizing up or even sizing down can all be incredibly thrilling – moving on to the next phase of your life with your expanding family or your newfound empty-nest freedom.
Regardless of your situation, both buying and selling a home are very personal decisions and which to do first depends on your unique circumstances – something to remember here is that there is no wrong answer. When navigating this path, we recommend looking at your must-haves, your like-to-haves, your budget, financing and timelines. Laying all of this out will help you formulate your strategy and provide confidence in moving forward with first steps.
Buying A House Before Selling Yours
Buying your new home first can sometimes come from a spur-of-the-moment opportunity – driving around your dream neighbourhood and seeing your dream home with a For Sale sign up. Or hearing from a friend that a home is for sale that you’ve had your eye on. But going into your move with a solid decision to buy first can alleviate a lot of stress and frantic decision making. By making the decision to buy first, you will already know your budget, you’ll be pre-approved for your mortgage and you’ll have a very good sense of where you want to live.
How to Buy a House While Selling Your Own
If you are planning to buy first, you’ll be the type of buyer who knows exactly what they want and will not settle for anything less. You’ll have more time to look for that perfect home because you’ll place a bigger priority on where you’re going to live in the future than the top dollar you’re willing to wait for on your current home. It’s a big decision but one you’re going to have to make and stick to.
Key factors that contribute to buying a home first can include the school district, neighbourhood, number of bedrooms and bathrooms, and for some, there are non-negotiables like having 2-car parking, a finished basement or even a pool!
Selling Your Home First And Buying Second
Selling your home first comes with a lot of thinking and planning for the future. Perhaps your family is expanding, and you need more space, or you could be downsizing from a large house into a condo, to enjoy more freedom and access to the downtown area.
But regardless of your reason, putting your home up for sale is a major step in the buying process. You want to take your time to find the right real estate agent, you’ll want to stage your home properly to make it really shine, or even make a few updates that will help attract home buyers quickly. You’ll pay attention to the selling season, and the neighbourhood competition.
Is it Better to Sell Your House Before Buying?
If you’re planning on selling your home first, you’ll be the type of seller who wants the absolute highest price for your home and you won’t budge from that number. Your priority will be strategically selling and waiting for the right buyer. You won’t be too picky about your next home – you know the basics of what you like – bedrooms and bathrooms, but are not tied to a specific street, school district or condo building. You’ll have a sense of the neighbourhood you want to be in but putting in a little elbow grease doesn’t scare you off.
The most important decision to make as you entire this exciting time of your life is to determine which of these two paths you want to take. Discuss with your family and your financial planner. Speak to a trusted Realtor who can help you navigate this big decision, and once you pick a path, there is no turning back. Sticking to your strategy will ensure you get exactly what you want, and moving into your next home after selling your current abode is indeed a celebratory time.