For many people selling one home and buying another, it’s a struggle figuring out whether they should sell their current home before acquiring that new property. Typically, most homeowners choose to sell their first home before investing in a new one to better manage their finances. But, when the market is hot and bidding is highly competitive, some people are willing to take more risks by buying before selling their current home. Regardless of your circumstances, there are some things to take into account when weighing the pros and cons of either approach.
The Benefits of Selling Before Buying
If you sell your current home before you buy one of the many Saskatoon homes for sale, you will know precisely how much money you have to invest in the new space, allowing you to focus on best price and neighbourhood. In addition, you will be able to make a compelling offer on a new property.
Selling Before Buying – Potential Problems
As soon as you sell your home, you’ll need to close on a new property before the closing date on your current property. This may compel you to make compromises and rush a close on a home that may not be ideal in terms of price, location, personal taste or your own needs. To reduce your risk, some choose to move into a lower-priced rental property until they find a new home.
The Benefits of Buying First
With this approach, you have the most time and flexibility, as you essentially purchase the home you desire when you find it. You face no pressure to compromise unnecessarily because of time constraints, so you can pick and choose whatever property you like. If you decide to go this route, research and connect with the best real estate agents in the area in which you want to live. This will equip you with a sound understanding of the marketplace in that location.
Buying First – Potential Problems
The downside of this approach is that you may have to finance the payments on two properties, should it take too long to sell your current home. Moreover, you may have to sell your current property for less to close a sale if you can’t find a buyer in a suitable amount of time. At the same time, if you can finance two homes comfortably for a short period of time, you may benefit from first purchasing your dream home from the large array of Saskatoon homes for sale.
Essentially, there is no right answer. Most people benefit from selling a home first, while some may find it better and more convenient to buy a home first. If you have the means, and you see a home that strikes your fancy right away, then you should go for it. For everyone else, it may be more reasonable to just cross your fingers and hope that your dream home is still there after your current home is sold.
If you’re getting ready to buy a new house or sell your existing home, contact me. I’ll work with you to ensure that you receive exactly what you want and need from the home buying and/or selling experience.