5 Reasons Why You Should Buy Before You Sell
In an ideal world you could buy a property and sell your current one all in the same day. Unfortunately, this cannot be the case very often especially when you consider factors in the market, supply and demand, and your own personal goals. You could sell your property first to make sure that it’s off your hands before taking on a different house, but then there’s the added stress of having to find your next home before the closing date. What if you don’t find anything that you can afford? What if you have to move back in with your parents? What if that’s not an option? Hence, I always recommend buying first before selling and in case you need more convincing, here are five more reasons why.
Inventory levels are historically low in Toronto right now. With less available it is harder for buyers to find property than it is for sellers to sell property. So going by this logic, chances are your house will go to market and get sold way before you’ve even had a chance to scope out your next new place. The inventory is simply too low to meet the demands of those who wish to buy so people looking are more likely to snatch what’s there before anyone else does.
It takes less time to sell than it does to buy. Add on time to make renovations to the new house if you need to and also time to renovate the house which you are selling to increase your sale price. Like I mentioned before, your house will likely sell fast due to the competition so by choosing to buy first, you are giving yourself more time to make confident preparations and decisions without feeling rushed.
One of the best cases for buying first is the fact that you aren’t committed to buying anything, so until your dream property comes up, you still have a home base that you enjoy. If there just isn’t anything on the market that checks off all your boxes, then no problem! Pause your search and/or continue enjoying your current home because you still have it and aren’t locked into selling. This also gives you the wonderful convenience of being as picky if you want to. Sometimes you have to wait for your dream home to come to you!
4. Easy Access To Financial Options
The idea of owning two properties at the same time may seem terrifying, but chances are you won’t have to for very long. Interest rates only last for a period of three to four months depending on your lender, so it’s smarter to buy first and know what rate you are locked into and subsequently what your buying power is. Bridge financing is also easy to get should you need to, which is especially helpful in hot markets where bidding wars are the norm. More on that here.
5. Less Stress
For some, the most important reason to buy first before selling is quite simply because it’s less stressful. The low inventory is already enough of a reason to give yourself more time and stay away from committing to sell if you’re not quite ready. You won’t be worried about finding your dream place in only 30-60 days because you will have already found it or have decided to pause your search and look a little longer knowing that you still have your current home to live in.
If you have any questions or would like to talk to any of us about buying or selling property, feel free to reach out and join us for a coffee!