Selling and Buying a Home at the Same Time
So, you decided to sell you present home and buy a new one. Like many others, you are asking yourself what should you do first: to sell or to buy.
Benefits of Selling first:
You do not have to worry about carrying two mortgages at the same time.
You know how much money exactly you can put toward your purchase
Unless you do not mind renting for some period of time, assuming that penalties for collapsing your mortgage and the notion of starting a new mortgage sound acceptable for you, you might find yourself constrained by time and, as a result, you might force yourself info a purchase that would not be your choice otherwise.
Benefits of Buying first:
You move smoothly from home to home.
If you cannot sell your home fast and easy, you might end up carrying two mortgages which is stressful and might compromise your position in terms of negotiating the price with a potential buyer.
There is no general rule and no universal answer for everybody whether to sell first or to buy first. If that is the question you are asking yourself, call me. Let's talk about it and find the best solution for you.
First of all, we analyze market of the area where you are selling and where you are buying. If, for example, you own a hot property that is easy to sell and are moving into area where market is slow, it might be beneficial for you to buy first and sell after.
Even though you decide to sell first, it is usually a good idea to negotiate a longer completion and possession days with the buyer. It will give you more time to find a new home.
You might want to buy a new home with a "subject to sell of your current home", which means you are buying a new place under the condition that by a certain date your previous property is sold. It is not a very popular notion on a hot market, but could be a wise choice for you on normal or slow markets.
And, no doubt, you need to talk to a mortgage specialist to discuss your financial arrangements. If you sell first and then buy, it sounds simple, you just use proceeds from the sale to finance the new home. If you buy first, you might need additional money to complete the purchase. If you do not have the sufficient amount available, you might use your unsecured or secured lines of credit or use so-called bridge financing.
All the above is theory. Let's talk about you. Please contact me at your convenience and we will set up a meeting to discuss your plans and your options on how to sell and buy at the same time. You can call me on my cell phone (604)807-6039 or fill out the form below and I will be in touch with you at my first opportunity.