Getting ready to move to a new home means always being on the go. There’s so much to do, and it can be hard to take a moment to collect your thoughts. There are also countless decisions to make, such as how much to sell your current house for and where to begin searching for your new home.

One question that comes up repeatedly for existing homeowners is when to list your property. Should you sell first so you have the funds from your sale in your account before committing to a new purchase? Or should you wait to sell until you know you have a place to go after your closing day? 

Each path has challenges and advantages, and whatever is happening in the current real estate market will play a role in your decision. In this post, we’ll show you what to consider to ensure a transition that is as seamless as possible.

Review the Market

While there is rarely a one-size-fits-all solution in real estate, you can’t go wrong by assessing the current situation before making your move. Some markets are more conducive to selling your house first; others lend themselves to securing your next home before listing yours.

Before making any decisions, a review of the types of markets will be helpful.

• A seller’s market: Hardly any homes are available even though the demand from buyers is high.
• A buyer’s market: Listings are plentiful, but not many buyers are lining up to place their offers.
• A balanced market: Enough listings are available for those who are seriously searching for a new home.

Within these three situations, there are often niche areas that run contrary to the market overall. For example, the market could be slow, yet houses in a particular neighbourhood still get snapped up quickly. An experienced real estate agent can help you make the most of these nuances in the market.

Looking for ideas to make the most out of your upcoming sale? You’ll get plenty of valuable advice in the posts below:

• What Season Should You Sell Your Home In Hamilton Or Burlington?
• How To Sell A Luxury Home In Ancaster
• Do Staged Homes Sell Faster In Hamilton-Burlington?

The Pros and Cons of Selling First

In many cases, selling your existing home first is the safest option. It takes away the uncertainty of whether your house will sell, how fast, and for how much. You can budget with greater accuracy because you will know exactly how much money you have to work with. 

The downside of selling first is that you will have a limited amount of time to find a new home. You may want to try to negotiate a short closing with your new property and a long closing on your existing home to give you some breathing room on moving day.

If you are unable to find a new home before your transaction finalizes, you may end up seeking temporary accommodations while putting your belongings in storage. This adds further expense to a move that may already be quite expensive. 

Though more hectic, selling first can be the better option if your risk tolerance is low. Nevertheless, you can never eliminate risk altogether. 

There is the small chance that the market picks up after you sell your house and before you secure a new one, resulting in a short-term equity loss and no small amount of frustration! The good news is that since you’ll already have the funds from your transaction in your account, you can make a compelling offer by dropping the condition of sale of your existing home. 

A slow buyer’s market is typically the best time to sell first. Finding a buyer will be the tough part. Once your house sells, securing your new residence will be easier with plenty of options available and low competition.

When to Consider Buying First

Though buying before selling can be riskier, there are certain situations where it makes sense. During periods of high demand, the chances that you will not be able to sell are low. 

On the other hand, securing your new home will be far more challenging as you compete with other hopeful buyers for few available listings. This often happens in hot markets where houses sell almost immediately after being listed. It can also happen if you have very particular tastes for what you want to see in your new home. In these situations, buying first offers several advantages:

• You don’t need to rush to find a new home before your closing date arrives or settle for anything less than ideal.
• Moving day is far more relaxed and less stressful. You may even have several days or more to transfer your belongings rather than trying to move in an afternoon.
• If prices continue to rise after you buy, you’ll have equity gains on both properties.

The downside of buying first is the element of uncertainty; you don’t know exactly how long it will take to sell your home or how much you will earn. The best way to minimize this risk is to have a financial cushion to cover you from the time you place an offer until the sale on your existing house closes.

Working with an experienced real estate agent is also essential. With the right guidance, you can get the best possible terms on your new house while being ready to sell your existing property quickly. This expertise and intuition, gained from years of working in every possible market, offer the best way to minimize the risks no matter what option you choose.

Wondering where you should start searching for your next home? The posts below will give you some ideas:

• Top 5 Hamilton Neighbourhoods For Families
• Why Are Toronto Residents Heading To Hamilton And Burlington?
• Why Should You Consider Moving Your Family To Ancaster?

Assess Your Personal Situation

Real estate transactions are affected by market conditions and an array of outside economic factors. However, in most cases, whether to buy or sell first is personal. Your decision depends on your level of risk tolerance and financial resources to meet any challenges that arise.

While only you know what’s right for you, your real estate agent can guide you and provide you with the information you need to make an informed choice. 

Do you have questions about the market or whether now is a good time for you to buy or sell? We are happy to point you in the right direction. Reach out today to hello@theoreillygroup.ca or call 905-512-5323 to start a conversation.

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