Should I Sell My Home or Buy First?
Avoid costly mistakes during simultaneous home sales and purchases by following our expert tips and strategies.
Making the decision to sell your current home and buy a new one can be both exciting and stressful. One of the most significant challenges you may face is determining the timing of these transactions. Should you sell your home first and then buy, or should you buy your new home before selling your old one? In this article, we will explore the pros and cons of each approach and provide some tips to navigate the timing of selling your old home and buying a new one in Edmonton's competitive real estate market.
Sell First, Then Buy: Advantages and Considerations
Selling your current home before buying a new one has some advantages that can alleviate financial and logistical concerns:
- Financial Security: Selling your home first allows you to know exactly how much funds you have available for your new purchase. This can provide you with more bargaining power and confidence during negotiations.
- No Rushed Decision-making: By selling first, you avoid the pressure of finding a new home quickly. This allows you to take your time, explore different neighbourhoods, and find the right property that meets your needs and preferences.
Related Read: How to Sell Your Home Quickly in Edmonton
However, selling first without securing your new home comes with a few considerations:
- Temporary Housing: You may need to arrange for temporary housing or find a short-term rental while you search for your new home. This can add additional costs and inconvenience, especially if you have a family or pets.
- Timing Challenges: There is a risk of not finding a suitable new home immediately, and you might need to deal with the complexities of temporary storage or multiple moves. It is important to have a backup plan in case the process takes longer than anticipated.
Related Read: How to Stage Your Home for a Quick Sale in Edmonton
Buy First, Then Sell: Advantages and Considerations
On the other hand, buying a new home before selling your old one may have its own benefits:
- No Rushed Move: By purchasing your new home first, you can move at your own pace and ensure a seamless transition. You can take your time with renovations, moving logistics, and setting up your new space.
- Avoid Housing Insecurity: Buying a new home before selling your old one ensures you have a place to live, eliminating the need for temporary housing arrangements or feeling rushed to find suitable accommodations.
However, buying first does come with its own considerations:
- Financial Strain: Purchasing a new home before selling your old one means carrying two mortgages simultaneously, which can put a strain on your finances. Ensure you have a solid plan in place to handle this situation, such as having a contingency fund or securing bridge financing.
- Potential Compromises: By purchasing a new home before selling your old one, you may be under pressure to accept a lower offer on your old home to meet financial obligations. This may result in a less favourable selling price.
Related Read: How to Find a Real Estate Agent in Edmonton
Navigating the Timing: Tips and Strategies
To navigate the timing of selling your old home and buying a new one, consider the following tips:
- Consult with a Real Estate Professional: Engage a trusted real estate agent who has experience handling simultaneous transactions. They can provide valuable insights, guide you through the process, and help you make informed decisions.
- Financial Planning: Consult with a financial advisor to understand your options and ensure you have a solid financial plan in place. They can help you assess the feasibility of carrying two mortgages or explore alternative financing solutions.
- Contingency Offers: Consider making a contingency offer on your new home, which means your purchase is dependent on selling your current home successfully. This approach provides peace of mind, as it removes some of the financial risks associated with buying first.
- Timing and Market Analysis: Study the local real estate market in Edmonton and work closely with your real estate agent to identify trends, optimal selling windows, and potential opportunities. This knowledge will help you make informed decisions about the timing of your transactions.