As my career in real estate continues to grow (I’ll be entering my 13th year in the business next month), I find myself getting more and more repeat business from past clients. Generally, this comes in the form of them wanting to sell the home I helped them buy a few years ago and move up to something bigger. While this particular buying/selling scenario is not uncommon, it does have its own unique set of factors to keep in mind. The easiest way to explore these is with the question, “Should I buy first or should I sell first?”
When the time comes for someone to sell and move up, they usually have a pretty good idea of what they want in their new home. More closets. A powder room. Some outdoor space. Room for a home office. The list goes on... I can tell you from experience that my clients have an even more specific list of "must haves" the second or third time around.
Buying first is a great option as it allows you time to shop for the home you truly want as opposed to settling for whatever happens to be on the market at the time. In the Toronto market inventory is often tight and it can sometimes take awhile for buyers to find and secure the right home. The last thing you want is to be pressured into a purchase simply because the deadline on your own sale is approaching fast. Buying first can give you more breathing room and peace of mind in this respect.
Selling first is a good option for some as it allows for a better idea of what their buying budget is. What if your home sells for $50,000 more than you're expecting? An extra 50K can certainly help check off more of the boxes on your buying wish list. On the flip side, what if your home sell for $50,000 less than you're expecting? No one wants to be in the position of having over spent on their purchase and coming up short on their sale.
Of course, when making any major real estate decision, current market conditions need to be considered. In a balanced market, less weight would be given to this factor. The reality though is that the Toronto real estate market is rarely balanced! In a Seller's Market, buying first is generally going to be the safer option. In a Buyer's Market, selling first will likely be the way to go.
If you’re thinking of making a move and would like to know how we can help, please contact us for more info.