With recent news surrounding cases where people have faced legal issues due to backing out of real estate deals in Ontario, the question of whether to buy or sell first has come to the forefront. There are several factors to consider here, and at the end of the day, you know your own situation better than anyone else. However, we’d like to point out the following on the topic of whether you should buy your new home, or sell your current one first.
The major considerations seem to surround finance and convenience. So here are some pro’s and con’s for you to review.
You Can Take Your Time: If you buy first, you can take your time moving in. If there are renovations that need to be done, you can complete those without feeling rushed. With the Real Estate market in Waterloo region being the way it has been over the past several months, there is definitely a clear benefit in having more time.
Find Your Ideal Home: When the market supply is tight, as it has been for over a year in the Kitchener-Waterloo region, there are fewer options available. This means that if you have a short closing period, you may be left with limited options and have to settle for a home other than your dream home. When you buy first, you aren’t under closing date pressures and are better able to search for the home you want.
Two Mortgages: If you buy first, you run the risk of owning two homes, which means two mortgages, two insurance policies, you get the drift? This can prove financially draining if your home takes longer than you expected to sell.
Delayed Mortgage: There is a chance that you can be approved for the mortgage of your new home by having an Agreement of Purchase in place for your new home. If your home takes longer to sell than you originally anticipated, you might not get your mortgage until you sell, in order to close on the property. Though it doesn’t happen often. It does happen.
Contentment of Knowing Your House Already Sold: When you sell your house first, you have one less thing to worry about with your move.
Guaranteed Funds: When you sell your house first, you know exactly how much money is available for the next purchase. No guessing is required.
Less Time to Search for Dream Home: If you sell your home first, you may be at the mercy of the closing date for when you can purchase and move into your home. This leaves you with obviously less time to search for and find your ideal home.
At the end of the day, whether you should purchase your new home first, or sell your current one first, seems to come down to convenience and what works better for you. More than anyone else, you know your situation best. Consider all your options before finalizing your decision.
Team Burca Real Estate is committed to providing clients in the Waterloo-Region and surrounding areas, with excellent service. This includes educating clients on their best options when it comes to Real Estate. For more information, contact us today!