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Ann Smith
Broker
Platinum Award Recipient
Phone: 519-433-4331
Toll Free:
1-866-851-1534
Fax: 519-433-6894Email: ansmith@sympatico.ca
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The Big Real Estate Dilemma…
Do I Buy or Sell First?
By Ann Smith
You’ve decided to move. Perhaps you want a larger kitchen or in-home office, or it’s time to downsize. Either way, you face the dilemma of what to do first – buy or sell.
To find the answer, you must understand the market and know your financial situation. Then ask: How much risk am I willing to take?
In a sellers market, you don’t have a choice. If the perfect home is available, you must make a quick buying decision or risk losing out. But be prepared to pay for two mortgages or arrange for bridge financing – so know what you can afford before jumping into a costly situation. On the upside, if your existing home is priced right, it may sell just as quickly. Your real estate agent can help you determine the best list price with consideration to the market, your location, and type of home.
When you sell your home first, you know exactly how much money you have available for the new purchase. On the downside, you’re left to look quickly for a home that meets your “perfect home” features, and the pressure may become overwhelming.
You may be able to include a “conditional offer” to purchase. That is, you’ll firm the purchase on the condition that your house sells within a certain period. The acceptance of such offers is usually determined by the market.
Another option is renting. This is a consideration for those on both sides of the equation. If you sell your home first, but can’t find the ideal home, rent until one becomes available. It will mean two moves, but in the end, you’ll have the security of knowing exactly what you can afford and the time to find the home that’s right for you.
If your existing home takes longer to sell than anticipated, you may be able to earn extra income by renting it after you move into your new home. But there’s a downside. Tenant-occupied property may be difficult to sell unless you have cooperative tenants and you could incur fix-up expenses before you sell in the future.
Ask your real estate agent for advice on your situation and the current market trends. Your agent should be able to give you an approximate time-line in selling your home and assistance in finding a mortgage broker.
How much risk are you willing to take? Ultimately, the choice is yours.
Your Real Estate Consultant…For Life!