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 

Wildthings in North Kawartha!

Wildlife in cottage country

Here are some photos I have taken over the summer in North Kawartha.

Check them out!

                                        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 

 

Case Study: Walk away from a deal because of the deposit amount?

 

When Deposit Demands Derail Real Estate Deals

Here is a recent case study that happened to me and some of the everyday complexities and challenges in real estate transactions. The key points are:

• The buyers found a house in rough shape that had been on the market for 2 years, presenting an opportunity for sweat equity.
• The initial offer was over 90% of the asking price, with a $10,000 deposit and a quick 45-day closing timeline - a very strong offer.
• The seller countered, asking for a higher $25,000 deposit, citing it as "standard" for a 5% deposit.
• We argued that the $10,000 deposit was appropriate given the buyers' financial situation and the limited risk to the seller with the quick closing timeline. However, the seller insisted on the higher $25,000 deposit.
• Ultimately, the deal fell through, as the seller was overly focused on maximizing the deposit rather than working constructively with the qualified buyers.

This case study illustrates how a seller's inflexibility around deposit amounts, even when a buyer is making a very strong offer, can derail an otherwise viable transaction. A $10,000 deposit on a home under $1 million is already a substantial amount that demonstrates the buyers' commitment. Pushing for an even higher $25,000 deposit, without a clear justification, seems unreasonable and could cost the seller a sale.

A common question is how much deposit is standard on a real estate contract? The simple answer is that there is no simple answer. The deposit money is a term of the contract agreed upon between the buyer and the seller. The more deposit money put forward, the more security the seller gains once the conditions have been met. The deposit money forms part of the purchase price and is calculated as part of the total price offered and not in addition to it.

For sellers, the deposit serves as a security measure that provides peace of mind. A buyer who submits a large deposit demonstrates a strong commitment to the deal. This is an excellent thing in a multiple offer situation. This good-faith money acts as a safeguard, ensuring that the seller won't be left in the lurch if the buyer backs out without a valid reason. 

So in my case, the seller wanted a $25,000 security measure for a closing that would happen in 45 days. He felt that $10,000 was insufficient to enforce the closing, as it was such a small amount that the buyers might be willing to walk away if they changed their minds. I don't know how many people who are buying houses under $1 million don't think $10,000 is a lot of money. The only common reason why anybody would walk away from their deposit in a real estate deal that I can think of is if values drastically changed. The bottom dropped out of the market. The risk of that happening in 45 days is extremely low. Is it worth walking away from a deal altogether because of that fear?

**Update** The listing that turned us down is still listed for sale. My buyer found another property, placed an offer and closed.

Elevate Your Cottage Getaway with These Must-Have Gadgets

Are you tired of roughing it at the cottage? This guide reveals the game-changing gadgets that will transform your lake life into a luxurious escape.

Welcome to the Cottage!

Kick off your cottage trip in style with a warm and inviting atmosphere. These essential gadgets will elevate your outdoor living experience and make your time at the cottage more comfortable and convenient.

From outdoor living essentials to tech that enhances comfort and entertainment, we've got you covered. Get ready to enjoy a cottage getaway like never before!

Outdoor Living Made Easier

Portable Power Station: Stay powered up with a solar-powered portable power station. This versatile gadget can provide electricity for lights, devices, and even small appliances, ensuring you never run out of juice.

Smart Grill: Take your cottage cooking to new heights with a smart grill that offers built-in temperature control and connectivity features. Monitor and adjust your grill from your phone for perfectly cooked meals every time.

Outdoor Shower: Refresh and rinse off after a swim or a long day with a compact, portable outdoor shower. This convenient gadget makes it easy to stay clean and comfortable in the great outdoors.

Tech for Comfort and Entertainment

Smart Home Hub: Transform your cottage into a smart home oasis with a hub that allows you to control lighting, temperature, and other devices. Enjoy ultimate comfort and convenience at your fingertips.

Portable Projector: Turn your cottage into a home theatre with a compact projector. Gather your friends and family for cozy movie nights under the stars or in the comfort of your cottage.

Wireless Speaker System: Fill your cottage with vibrant, immersive sound with a multi-room wireless speaker system. Create the perfect atmosphere for relaxation, entertainment, or lively gatherings.

Elevated Cooking Experience

Dutch Oven: Elevate your cottage cuisine with a versatile Dutch oven. This durable, heat-retaining tool is perfect for preparing delicious meals over a campfire or on the stovetop.

Portable Blender: Whip up refreshing smoothies, margaritas, and more with a compact, portable blender. Enjoy your favourite cottage-inspired drinks with ease.

Cast-Iron Skillet: Elevate the classic cottage cooking experience to new heights with a cast-iron skillet. This durable pan retains heat beautifully, ensuring evenly cooked meals every time.

Relaxation and Recreation

Hammock: Unwind and soak in the cottage views from the comfort of a cozy hammock. Relax and recharge in the great outdoors.

Kayak or Canoe: Explore the lake and discover hidden coves and scenic vistas by paddling on a kayak or canoe. Reconnect with nature and enjoy the peaceful serenity of the water.

Portable Games: Keep the whole family entertained with a selection of classic and modern portable games. From board games to lawn games, there's something for everyone to enjoy.

To Wrap this all up!

Elevate your cottage getaway with these must-have gadgets. From outdoor living essentials to tech that enhances comfort and entertainment, these gadgets will transform your lake life into a luxurious escape.

Share your favourite cottage gadgets in the comments below. For more content that will make your time at the cottage truly unforgettable, subscribe to our blog.

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

You can not beat the value offered here! Bring your offers $449,900 Rice Lake Renovated Cottage Presented by Brad Sinclair, Sales Representative Royal Heritage Inc

Summer is Here-time for the cottage season! Enjoy this extensively renovated island cottage on Rice Lake, Long Island. This fully insulated cottage features new windows and a new main door. New siding, soffits, fascia and eaves. Put your mind at ease knowing there is a steel roof on the front and 5-year-old shingles on the rear, plus a new steel roof on the shed. Indoors, you'll find a new, freshly installed kitchen, just waiting for its first family gathering. The newly renovated bathroom features a new vanity and light fixture. As you enter the cottage, the new wood wall coverings add a welcoming scent of pine. The new subfloor and flooring provide easy maintenance and a durable living space. A new ductless heat pump and baseboards help to keep the cold at bay. Throughout the cottage, there are new switches, plugs and light fixtures. The property features a spacious rear yard, providing ample space for the children to play. Check out the huge deck! The property is just a few minutes' boat ride from the mainland, allowing you to relax on the dock in no time. Just 90 minutes from the GTA, Rice Lake is known for its spectacular fishing, boating and family-friendly atmosphere.

 MLS®#: X12127545

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