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Life carries on regardless of what the real estate market is doing. Children get older and move out, new additions are welcomed into the family and sometimes elderly parents move in. The current real estate market being a little cooler than previous years, is now providing buyers an option to either make an entry as a first time home buyer, or upsize to a new home that is better suited for their family. For this group in the latter category, the hurdle they face is whether they should buy their home first and then sell… or sell their current home first and then look for their new home.
The pros to selling first include knowing exactly how much money you are working with before you start your house hunting journey. The cons are that once you sell, there is a timeline towards moving out of your home and a risk of not finding what you want within this time. You would possibly have to settle or find alternative accommodation, like renting.
The pros to buying first are that you would likely not have put an offer on a home unless it met every need you could possibly think of. The con to buying first is that the market may not give you the price you thought your home was worth.
Both scenarios come with their own share of considerations however, here are a few more points to consider that may help you with your decision.
- Understand the market you are currently in and your home value in this market.
- Know your numbers. It is important to have a discussion with your financial institution or a mortgage professional that will be able to guide you on what you might be able to afford.
3) Know yourself. Are you and your family looking for a unique type of home or are you finding yourself falling in love with a variety of homes on the market.
How you answer the questions above, along with open communication with your Realtor®, will help guide you through the many ‘what if’ scenarios that may pop up. In my experience, I have observed that the more active a client is with their home search, the faster the results come of finding what they are looking for. Moving ahead on whether to buy or sell first still requires critical thought to proceed with confidence. Whether it is a first home or second home, it is still the biggest purchase of one’s life and requires care and thought to ensure the journey is as smooth as possible. Happy hunting!
-Gautam Khanna
