Buy or sell first?
Should you buy or sell your property first? Each option has its advantages and risks. By carefully weighing the pros and cons and planning alternative solutions in case something goes wrong, you'll be able to make an informed decision.
Sell first
By selling your property before finding a new one, you will know the exact amount you’ll receive from the sale. This gives you a clear idea of how much you can spend on your new residence.
You may feel an urgent need to find a new home. However, keep in mind that you will have all the necessary information to make a strong purchase offer. For example, knowing the move-in date of the buyers of your home will allow you to determine when you want to take possession of your new property. If these dates don’t match, you can always opt for temporary housing.
Buy first
By buying first, you'll know your new address, the exact cost of your new residence, the date when you’ll take ownership, and the transaction date. You can factor these elements in when you receive a purchase offer for your current property.
It is also possible to make a purchase offer conditional on the sale of your property. In this case, the owner of the home you’re interested in might receive another offer without any conditions. To give you priority, they may ask you to remove your condition. You’ll then have to decide whether to buy the property before selling your own or withdraw your offer.
In any case, it’s a good idea to arrange for temporary financing in case your current property hasn’t sold by the time you sign the purchase agreement for your new home.
