Should I Sell My Home BEFORE Buying a New One?

Are you confused about whether to sell your home before buying?

You're NOT alone!

When you’re preparing to make a move it can be difficult to decide whether you should sell your current home before buying your new Toronto home. Is it always best to sell first? When might it be a good idea to consider buying first? 

Timing is an important part of real estate, whether you’re buying or selling. If you’re about to do both it can be difficult knowing where to begin! While most people assume they will sell first and then buy, sometimes it is a good idea to consider doing things differently. 

Here's what you should CONSIDER:

Whether you should buy or sell first depends largely on the current market. Armed with market research and guidance from your real estate agent, you can decide what makes the most sense for you right now. 

While your agent can advise you based on your individual situation, here is some general advice to consider in both a Seller’s Market and a Buyer’s Market:

What is the Current State of the Market? Should I Sell First or Buy First?

IN A SELLER'S MARKET

Because of a limited number of listings, properties are attracting a lot of attention and are selling in multiple offer scenarios, often over asking price. 

What does that mean for buyers? Competition…and time. In Toronto, buyers often find themselves making many offers before one is finally accepted. Therefore, it can take longer to find their next home. 

Sell I First or Buy First?:

What if you Decided to Buy First? 

It generally takes longer to have an offer accepted in a competitive market. Therefore, if you sold first you could find yourself living with friends or family when the buying process takes longer than expected. 

Some people who sell first even feel so pressured to find a new place quickly that they consider bidding higher or buying a property that isn’t really right for them. Don’t do that! It’s better to allow yourself more time for the buying process so you stick to your financial comfort zone and find a home you’ll love.

What Are Your Next Steps?:

As you look for your next home, prepare to sell your current one. Keep in mind your specific housing type and neighbourhood. If homes like yours (especially in your building or on your street) are selling quickly it’s an indicator yours is likely to as well. 

Your Realtor (✔️ The Armstrong Team ✔️) can advise you about how to make your property most attractive to buyers, and what steps to take first. Then, you can begin preparing your home for sale at the same time you’re touring new properties. 

Still nervous about buying first? Set a longer closing date for the new home you’re buying so you have more time to get your current place sold. Of course, you might still choose to sell first for various reasons. It’s up to you. Discuss specifics with your agent, but know the buying process could take more time in a hot market.

IN A BUYER'S MARKET:

Properties are sitting on the market longer. Often it is due to an increased number of listings.

What does that mean for buyers? Less competition and, potentially, more options. It also means buyers could get a home for a better price, since sellers might be getting restless if their property has sat on the market for a while.

Sell First or Buy First:

What if you Decided to Sell First? 

Since it can take a longer time to sell your home in a buyer's market, it is a good idea to sell your current property first. If it takes longer to sell your home, you don’t want to have bought a new home and be stuck paying for both while waiting for a buyer. 

If you have already bought a home you might be pressured to sell your current home for less money to avoid being stuck with two mortgages. It's better to give the sale of your home more time in a buyer’s market before investing in a new one.

Next Steps: Make sure you do what you can to make your home stand out in a market with many available listings. Your agent can help you stage, market, and price your home to attract buyers. 

As you go through the selling process, you can start researching and even touring homes. That way, if your home does sell sooner than expected you already have a good idea of what’s out there, and what you are looking for in your new home!

Whether you decide to sell first or buy first, make sure you do your research about the current market and consult The Armstrong Team for even more specific advice. That way you can sell and make your next move to your ideal home- after considering all your options.