Strategy is vital for buying and selling a home
(NC) – Should you sell your home before buying another, or wait until you find the perfect new place?
According to Phil Dorner, president of the Ontario Real Estate Association, there is no one-size-fits-all answer to this question.
“While selling your home first alleviates the financial burden of carrying two homes, it really comes down to what your needs are and how tight the market is.”
Dorner recommends playing it safe by putting conditions into offers. “Sellers should include a condition that the sale will only go forward if a new home is found within a given timeframe. A conditional offer also protects buyers. In the event that a buyer does not sell their current home, they won't be obligated to buy even if an offer has been made.”
Here are some of the pros and cons of selling versus buying first:
If selling first:
• You'll know how much money you have to spend on your new home and be able to make firm offers on homes that you are serious about buying.
• You may have to rent or make other arrangements until you find your next house. In many short-term situations, the new homeowners will allow you to rent back your old home, provided you cover their costs.
• Understand the rules around the portability of your mortgage. This option lets you transfer the interest rate and existing terms of your current mortgage to your new home (subject to a credit review and property appraisal).
If buying first:
• You may have to finance both homes, carrying extra debt until you sell your current one.
• You may be pressured to sell your current home at a reduced price in order to align the closing dates.
• You'll only have to move once and can avoid putting furniture in storage.
• Especially if the market is “hot” then this may be the only way to ensure that you are able to compete with multiple offers and get the home that you want.
“Be sure to speak to a Realtor when choosing your strategy,” says Dorner. “These specialists can also help you negotiate comfortable closing dates, get you a good price on your home, sell it quickly and help you understand your finances.”
More information is available online at www.howrealtorshelp.ca
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