Are You Contemplating Moving To A Smaller Or Bigger Home? Which Comes First, Buying Or Selling?

Should you buy or sell your current home first? This question turns out to be a frequent issue faced by many homeowners who are considering upgrading or downsizing—or just searching for a new beginning. However, since everyone is unique, there isn't a right answer. A lot of variables will determine what's best for you, such as your spending limit, your financial situation, and your tolerance for risk. 

The main factor to follow is the conditions of the markets you are planning to enter and leave. For example, are you selling in a balanced market and moving into a market where conditions favour the seller? A general rule of thumb is that you always want to complete the more challenging move first.?

Even if you wish to move on from your current home, there are guidelines you should follow before deciding.
 
Buying Before Selling
Many homeowners are opting to buy their next home before selling their current one due to a variety of factors. There is a limited supply of homes available for sale, and the sellers' market has lasted for quite some time, giving many home sellers hope that they would be able to sell their property.
 
For the most part, homebuyers are terrified of not finding the appropriate property in the right neighbourhood or that it will be unavailable. If this describes your circumstance, you should think about using this strategy.

Pros:

• You can take as long as you need to shop for your new home.
• If the right property becomes available tomorrow or six months from now, you'll be ready to buy.
• If it is a seller's market and your home is in good shape and priced appropriately, then you should have no problem selling when the time comes. 

• When you buy a home, you're committed to owning two homes until you sell your old one. Depending on the person, this might be quite stressful.
• You lose the freedom you gain by purchasing your home first when you sell it. To get the best price for your present home, you should sell it as soon as possible.

• Buying a new home is much easier once your old one has been sold.
• If your property is the subject of numerous offers, you may relax knowing that you've already sold it. Confidence is a powerful bargaining tool that many people fail to grasp.

• You will have to live in a temporary housing solution
• You will have to move twice. 

1. Is it possible for you to financially carry two residences till you sell your present one? 
2. Is it okay with you if you have to decrease your home's listing price if you don't get any offers?
3. Is there anywhere you can stay if you have to leave your current residence before you acquire a new home?

 
If you’ve made the decision to sell your home, but you don't know where to begin, click here to check out our suggestion.
 
 
As you can see, there are some advantages and disadvantages to both methods, as well as some actionable steps you can take to reduce your exposure to risk. Think about what you've learned and decide. If something jumps out to you more than anything else, it's probably the route you should follow. You know yourself better than anybody else.
 
If you have any questions about buying or selling a home, contact Andrew Irani today!