Early next year, after the holiday rush we will be building up to our busiest season of the year “The Toronto Spring Market”. This time of year typically generates more multiple offers and some serious competition especially for purchasers looking for a detached or semi-detached home. It is a time when most prospective homeowners find themselves in a dilemma when it comes to deciding whether they should be selling their home first and then purchase it later, or whether they should purchase first and then sell later. This is a very tough decisions that has both negative and positive consequences depending on what you choose and home owners can minimize the risk if they have a detailed strategy in place.
Most people will find it more sensible to sell their home first before they make an offer on any other properties. They feel it is less stressful and there is no quick scramble to sell at a lower price because they feel overwhelmed with the stress or possibility of not selling it in time. Whereas this may be true in some cases, it can nevertheless leave purchasers in an awkward situation if they are unable to find a new property to purchase before their sold property closes. Selling first is normally recommended when there are numerous properties available for sale, and when there are fewer buyers competing to purchase these properties. If you sell first always make sure you have a back up plan in place and somewhere you can stay if your sold property closes before the property you have purchased.
When home owners purchase before they sell, there is a possibility that they will most likely find their dream home because they have plenty of time to search for the properties of their choice. This strategy is best particularly when properties are selling very quickly and there are few properties to choose from. However, the risk involved in this strategy is that home owners can be forced to sell their properties at a low price hence losing a lot of money.
Based on the location of your current property and the neighbourhood you would like to purchase in your Real Estate agent can offer you the best and most logical advice on whether you should buy or sell first.
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