Moving to a new house is a big deal. Not only is it a major life change, but it also involves two separate real estate transactions: buying and selling. One of your first big decisions in moving will be which step you take first.
Deciding whether to buy or sell first isn’t just about preference. It can have major ramifications in terms of finances, logistics, and your personal well-being. It’s also a question without an evergreen answer.
In this blog post, I’ll explore whether you should buy or sell first in today’s market.
Selling your house? Schedule a free property evaluation.
The Market Matters
If you’re not sure whether to buy or sell first, the best place to turn to is the market. Real estate trends are complex, and market conditions will influence both stages of your upcoming move, i.e. your purchase and sale.
For example, today’s real estate market has many calling cards of a traditional buyer’s market: high levels of inventory and a relatively small pool of buyers. But does that mean it is a buyer’s market? Not exactly.
Although there’s currently a surplus of inventory, there’s a big disparity between high quality and low quality listings. Because only a portion of for sale homes are actually of interest to buyers, actual market dynamics aren’t as unbalanced as the numbers suggest. This means that buyers don’t necessarily have the negotiating power that they think they do.
These are just a few things to consider when weighing market conditions with your personal circumstances.
Planning to sell your home? Explore these related pages on our site.
- How to Sell Your House Fast
- Why Choose Naccarato Group to Sell Your Home
- Checklist for Selling a House in York Region
When to Buy a House First
In many ways, buying your next house before you sell is the riskier option. However, there are some very real advantages to doing things this way. If it suits your personal circumstances, choosing to buy first could be the best way to go.
You Have Specific Tastes
One of the main reasons to buy first is that you won’t feel rushed into buying something just so you have a place to live. This is important if you have unique needs or a specific vision of what your dream house looks like.
Today’s inventory levels are high, but quantity doesn’t always equate to quality, and buyers with high standards may have a harder time finding the perfect place as a result.
You Have Extra Cash
Buying first also makes sense if you have a surplus of cash at your disposal. In other words, you know what you want to spend on your next home and are comfortable with covering two mortgages while you wait for your current place to sell.
When to Sell Your House First
Next, let’s explore when it makes the most sense to sell your current house before buying another.
You’re Not Sure of Your Final Budget
Selling your house allows you to cash in on the equity you’ve built since owning it, which can give your personal finances a boost as you prepare to buy again. With that in mind, choosing to sell first ensures you know exactly how much money you have to spend on your next property.
This type of financial clarity can make your upcoming home search more efficient. It can also prevent you from making a major financial commitment that you’re not prepared for.
You Have a Backup Plan
One of the downsides of selling your house first is that it creates a time crunch. You’ve got a short window of time to find and buy a new place before handing over the keys to your current one.
If you’re not able to do this, you could be scrambling to find temporary accommodation. Not only is being stuck without a place to live stressful, but it can also be expensive.
That said, if you have a solid backup plan in place, such as the ability to stay with family members, you don’t need to worry about this type of situation.
About to buy a house? Check out these blog posts for more advice!
- What to Know When Going From a Condo to a House
- Should I Get a Home Inspection?
- Do I Need a Bigger Home?
Buying vs Selling First: What Do Most People Do?
Real estate tends to follow trends. So, what are most homeowners choosing to do in today’s market? In York Region, where I work, it’s about a 50/50 split.
Some families sell first, others buy. At the end of the day, it’s about understanding how your personal circumstances align with market conditions.
Make Your Move With Naccarato Group
Ready to make a move? Whatever your real estate needs may be, our full service team can help! From maximizing the results of your home sale to finding the perfect place to spend your next chapter, Naccarato Real Estate Group has the experience and expertise to guide you through a seamless transition.
Searching for a great Realtor? Get in touch at christian@naccaratogroup.ca or call (647) 492-6508.
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