Should I buy my next home first or sell my current home first? 5 Scenarios to consider.

Should I Buy or Sell First?

The question asked by nearly every home seller. The answer depends on your risk tolerance level and personal circumstances. Let's review the following scenarios to help you decide what might be right for you.

Scenario 01: Seller's Market

Recommendation: Buy First

Typically, you want to start with the transaction that will take the most time. This means that in a seller's market, you would want to buy first, since finding the right home to purchase will likely take more time than it will to sell your current home.

Scenario 02: Buyer's Market

Recommendation: Sell First

On the flip side, if you are in a buyer's market, you will usually sell your current home first and then buy your new one.

Scenario 03: Subject-to-Sale Offer

Recommendation: Buy and Sell at the Same Time

A subject-to-sale offer is the best of both worlds, as it allows you to purchase a new home on the condition that you are able to sell your current one. Not all sellers will accept a subject-to-sale offer, but they are more likely to do so in a buyer's market.

Scenario 04: Afford Two Properties

Recommendation: Buy First

If you can temporarily afford to pay the mortgage on two properties, you can eliminate some of the risk involved in purchasing before you sell.

Scenario 05: Temporary Living Arrangement

Recommendation: Sell First

Whether you sell or buy first, there is a small risk that the possession dates on both properties may not line up. Having a backup plan for where you can stay while waiting to move into your new home can help mitigate this risk.                                         

In summary, the decision to buy or sell your home first depends on your specific market conditions, risk tolerance, and personal circumstances. If you are in a seller's market, it is generally recommended to buy first. In a buyer's market, selling first is usually the better approach. If possible, a subject-to-sale offer can provide the best of both worlds. Ultimately, having a backup plan for temporary living arrangements and the financial means to carry two mortgages can help mitigate the risks of either buying or selling first. Carefully evaluate your situation and discuss options with your real estate agent to determine the best strategy for your home sale and purchase.

Brought to you by: Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country

Not intended to solicit clients under contract