Should you buy or sell first?

Should you buy or sell your property first? Each option has its advantages and risks. By carefully considering the pros and cons, and planning for workarounds should something go wrong, you'll be able to make an informed choice.

Sell first
By selling your property before you have found another, you will know the exact amount that will come back to you in the context of the sale. You will therefore have a precise idea of the amount available for the purchase of your new residence.

You may feel an urgent need to find a new home. However, keep in mind that you will have all the data required to make a solid promise to purchase. For example, by knowing when the buyers of your home will move in, you can determine when you want to take possession of your new property. If these dates do not coincide, you can always opt for temporary accommodation.

Buy first
By buying first, you will know in advance your new address, the exact cost of your new residence, the date on which you will become the owner and the date of the transaction. You can take these elements into account when you receive a promise to purchase for your current property.

It is also possible to make a promise to purchase conditional on the sale of your property. In this case, it is possible that the owner of the residence you are coveting will receive another promise to purchase that does not impose any conditions on him. To be able to give you priority, it will ask you to remove your condition. You will then have the choice of buying this property before selling yours, or withdrawing your offer.

Anyway, it's a good idea to have a temporary source of financing in place in case your current property isn't sold when you sign the contract to purchase your new property.

SOURCE: CENTRIS.CA