When you are selling your home and buying a new home, whether it’s to upgrade to a larger home, or downsizing to something smaller, there is some confusion as to whether a homeowner should buy a new home first, or sell their existing home first.
In the past, when a homeowner decided to buy a new home and sell their existing home, the way to do this was to find a new home first, put in an offer and then sell their home. However, this way of thinking isn’t necessarily best for your situation.
There are two schools of thought on how to buy and sell a home at the same time:
- Find a new home and put in an offer conditional upon selling your current home;
- Sell your existing home first, upon you finding a new home to live in.
Homeowners are moving away from the typical situation where they attempt to purchase a home first, with the condition of selling their home, as these types of offers typically include an “escape” clause, where the seller can accept another offer with different conditions and your offer will be bumped in favour of the second offer.
The Pro’s of Selling Your Home FirstIf you first, sell your home, with the condition of buying a new home to live in, you will have peace-of-mind that your home is sold. You will also know what price your home sold at and will know the price of a new home that you can put an offer in on.
This option will likely cause less stress, especially if you are flexible with renting or living with family while you find a new home. You can take your time and feel less rushed with this route.
The Pro’s of Buying a New Home First
The best part of buying a new home before you sell your existing home is knowing that you have somewhere to go once you sell. Of course it’s comforting to know once your home sells, you have a new home already lined up to move into. However, having that condition on buying a new home could result in your offer being less attractive to sellers, and end up with your offer being bumped for a better offer.
If you are selling and buying a new home, contact us today for more details. I am happy to call you and speak about the best option for your situation.