There are a few different factors at play when making the decision to buy and sell a home.
Should you buy a new home or sell your existing home first? There are a few different factors at play when making that decision, and they vary case by case.
At the outset, ask yourself two questions: What is the price range in which you are selling? And what is the price range in which you are buying?
To illustrate that there’s really no blanket answer that covers every person’s situation, I’d like to share two unique experiences from two different clients.
One client is selling their $4 million home first and then downsizing to a $2 million property. This particular client has elected to sell first for two reasons: First, selling a higher-priced home on the market takes a little longer—in their price point, the average home spends about 14 days on market. Secondly, they’re more comfortable knowing the amount of money they’ll have in their pocket after the sale before they set out to find their new home.
My other client’s situation is just the opposite: They’re purchasing a $4 million property first and subsequently selling their $1.9 million home. The market for homes in their price point differs from that of the previously mentioned client; homes in their price range spend just seven days on market, which gives them confidence that they’ll be able to sell in that time frame. What’s more, homes in the $4 million range can be hard to come by.
What are the takeaways then?
Well, if you plan to purchase a new home first, make sure you have the wherewithal to do so, given that you won’t yet have the funds from your own home sale.
And comfort should play a crucial part in your decision; for some, the idea of not having their home sold first is an uncomfortable one, whereas others don’t like the uncertainty of where they’ll go if they were to sell first.
All in all, these decisions depend on what does and doesn’t suit you and how you feel about the whole process. If you have any other questions, you can always email me at Adam@AdamParsons.ca or call me at 416-646-8837. I look forward to hearing from you!