Sell ​​before buying or Buy before selling?

Your decision is made: you have decided to move. You are already on your computer looking at properties for sale to get an idea. Luckily, you come across the ideal house! Exactly what you were looking for. Then comes the question that everyone asks at the start of a real estate transaction: do we buy the new property before selling ours? To answer this, here is a guide to help you.

Advantages and Disadvantages: Selling Before Buying

Benefits

• Financial Security: Knowing the proceeds of the sale facilitates financial planning for the next purchase.
• Reduced Financial Stress: No worry of managing two mortgages simultaneously, which reduces pressure.
• Improved Negotiation Strength: Less urgency to sell quickly allows you to negotiate better deals.
• Increased Choice: More time to select the new house without rushing.
• Flexibility in Timing: You can take your time searching for the perfect home without the pressure of buying right away.
• Avoid Losing Value: If the real estate market is down, selling first can avoid losing value on your current property.

Disadvantages

• Necessary Temporary Housing: Possible need to find temporary residence between the two transactions.
• Extended Search Time: The new home may take longer to find than expected.
• Multiple Moving Stress: Potential move in two stages, first to temporary accommodation, then to the permanent home.
• Unpredictable Market: Time spent looking for a new home could see an increase in property prices, which could make the purchase more expensive.

Buy before selling: advantages and disadvantages

Benefits

• Reduced Search Stress: Less stress by already having a new home before selling your current one.
• No Temporary Housing: No need to find temporary housing between the sale and the purchase.
• Ease of Transition: You can move straight into your new home without interruption.
• Possibility of Renovations: You can carry out renovations in the new house before moving in.

Disadvantages

• Pressure to Sell Quickly: May force compromise on the sale price of the old home.
• Additional Financial Risk: Risk of having to pay two mortgages until the current house is sold.
• Financing Difficulty: Getting a mortgage for a new home while you still have a mortgage on your current home can be complicated.
• Risks of Overvaluation: If you buy before selling, you risk overestimating your financial capacity, especially if the sale of your current home takes longer than expected.

Conclusion

The decision depends on your personal preferences and financial situation. For a smooth transition, consult a professional residential real estate broker such as Gail Meili, who will help you weigh the pros and cons of each approach. Gail, your real estate broker, can provide personalized advice to ensure a successful transaction. Plan carefully to ensure a successful transaction. Contact Gail Meili to discuss further and find the best solution for your situation! You can reach her in Vaudreuil-Dorion  by email at gailmeili@icloud.com or by phone at 514 969-4134.