If you’re selling your family home and moving up to something bigger, you have two real estate transactions to prepare for. As part of this, you’ll want to decide carefully whether it’s best to buy a home or sell your home first.
There’s no universal answer for whether it’s better to buy or sell first, and both routes have their pros and cons. You’ll want to think closely about each option before deciding which will work best for your family.
As a York Region Realtor, I work closely with local families as they transition from one house to the next. In this blog post, I’m sharing some insider advice to help you decide whether you should buy or sell first.
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Why Most People Sell First
The vast majority of upsizing families decide to sell their current home before buying something new, and it’s not difficult to understand why. Speaking broadly, selling first has a lot of advantages, and those perks stretch further than you may realize.
Budget Solidification
Arguably, the best reason to sell your current home before you buy another is financial clarity. Unless you have a surplus of cash lying around, there’s a strong likelihood that you’ll be leveraging the returns from your upcoming sale towards your next mortgage. With that in mind, you won’t want to commit to a major purchase without knowing that you can afford it.
When you sell first, you know exactly how much money you have to put towards your next purchase. This allows you to build out an informed budget and house hunt with greater confidence.
There’s Less Risk
Speaking of money, another strong reason to sell your house before buying is that it’s far less risky from a financial standpoint. If you successfully make an offer on another property before selling, you could find yourself paying two mortgages at the same time. Even temporarily, this can be detrimental to your personal finances.
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What Are the Advantages of Buying First?
Most Canadian families go the sell-first route when moving to a new house. However, the other route (buying a house before selling) has its advantages too. It could be the right option for your family depending on your specific needs.
Careful Selection
One of the best reasons to buy your next house before selling is that it gives you unlimited time to house hunt. This is really important if you have specific tastes or are looking for a type of property that’s not available all the time. Maybe you’re looking to own a house on a particular street, or want a place that has unique features. In these cases, it’s often best to wait for your dream home to come around, then proceed with selling once you’ve successfully bought it.
Less Pressure
Another reason to buy first: waving goodbye to certain anxieties.
Buying a house, like selling, can be stressful at times, and this pressure can multiply when you have a move date looming over your shoulder. Buying first can alleviate this type of anxiety by allowing you to relax and take your time while house hunting. You won’t feel rushed into buying a property you’re not 100% happy with.
Know Your Timeline
Buying before you sell can also grant your family greater autonomy over your moving timeline. When you sell first, you won’t know exactly when you’ll be moving (at least not early on). On the other hand, buying first gives you a possession date from day one. This means you can plan for your move, whether your current house has been sold by that date or not.
Make Your Move With Naccarato Group
Moving to a bigger home? We can help. From maximizing the results of your home sale to finding the perfect place to spend your next chapter, our expert team can guide you through a seamless and successful transition.
Need an expert York Region Realtor? Get in touch at christian@naccaratogroup.ca or call (647) 492-6508.
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