Oakville Real Estate News

Why Selling Your Home Before Buying May Make Sense

Blog by Joette Fielding | August 6th, 2015

Buy or Sell.jpgA soon-to-be home seller may plan on selling their home and concurrently buying a new one.  The seller's market that we currently find ourselves in, where there is less home inventory compared to the constant demand for it, may complicate that process a bit. Because of this seller's market, you could be surprised by one or more quick offers on your home very soon after listing.  This can leave a seller in the position to sell their home before having a new one to live in.

Selling a home before purchasing a new one may seem like a recipe for disaster, but there are some compelling reasons to consider this option.  The most obvious reason would be the sound financial position you would be in after selling your home.  You'll be ready to make an offer on a home as soon as it catches your eye and your pockets are full as the result of the sale of your home.  Here are a few other benefits of selling your home before securing a new one:

Time – You won't have to find a new place to live with the pressures of knowing you need to do so quickly.  This is great, because you won't have to settle on a purchase and can take the time to find a home and property that really captures your heart. 

Leverage – When your home is listed prior to finding a new home you won't feel the undo pressure of accepting the first offer that comes along if it's not what you truly want. You will have no reason to make a hasty decision. On the other hand, when you decide you are ready to move forward with a purchase you will have more negotiating power, and power is EVERYTHING. When you don't have the burden of a home-sale contingency your offer will be more appealing to a seller and may put you in a more favourable position when bidding with multiple buyers. 

Flexibility – By renting and living in temporary housing for a brief period, you can give yourself plenty of time to find your next, more permanent, home.  Putting your belongings in storage may be tough, but rest assured they will be readily available as soon as your new home is your new home. If you aren't into renting for the short-term, today's seller's market may give you the opportunity to flexibly negotiate with your buyer for more time to purchase a new home of your own.  In this transition period, you could also rent your current home from the new buyer as you work toward your new home purchase.  This is called a sale-leaseback agreement.  

One mortgage payment is enough – Every dollar counts and you definitely don't want to be stuck with two mortgage payments if you can help it. Also, by selling your home prior to buying, you may be freeing up credit with your bank, allowing you to spend more when you do find that dream home.  

There are many approaches to moving, and selling your current home before buying new may be the approach for you! Always consult your real estate agent to weigh your options and determine the best plan for your needs.

Content courtesy of http://www.realtytimes.com


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