For a homeowner, there is no easy answer when deciding whether to sell your existing home or find a new one first, as there are pros and cons to consider with both options.
“Several factors will impact your decision, including your personal finances, your timeline and local market conditions,” explains Ettore Cardarelli, president of the Ontario Real Estate Association. “It is different for each homebuyer.”
If you sell your existing home before buying a new one, you may have to find a place to live and store your furniture before you can take possession of your new home. On the positive side, you’ll have a more precise budget to put toward your new home, and your offer may be more attractive to sellers looking to close quickly.
If you buy before you sell, you may be on the hook for two mortgages and other housing related expenses until your first home sells. However, this option gives you more time and flexibility to find the perfect place.
Ask your Realtor about your options. “Depending on your market, you might choose to negotiate an extended closing period or make the purchase conditional on the sale of your current home within a specified amount of time,” says Cardarelli. “Whether you’re in a seller’s market or buyer’s market will impact your negotiating power.”