Listing or Buying What Comes First?
Right now, much of Canada is in a red-hot real estate market, and we're seeing the characteristic patterns that go with it. The inventory of attractive listings in many markets is lower than we've seen in some time. Buyers are aggressively going after properties, sometimes paying record prices for the few attractive, well priced homes on the market. This kind of hot market is good news for the seller, while buyers often find their choices are limited. Homeowners who want to sell their existing home and buy a new one are asking what they should do first in a hot real estate market.
Unfortunately, there's no one right answer to that question. However, while each situation is different, there are some common factors to consider that may help you make the right decision. When demand is higher than the supply of housing, the resulting seller's market often brings buyers who are quick to make an offer when they see something they like. Also, their first offers are often quite good ones, since they don't want negotiations to drag on until another prospective buyer enters the picture. Your Right at Home real estate professional Mike Perrin can help you price your home smartly to take advantage of this market and ideally, your home will sell at a good price within a short window of time.
However, if your home does sell quickly, it doesn't necessarily mean that you have to leave it quickly. Your agreement of purchase and sale will specify your transaction closing date. While this date is typically sixty or ninety days from acceptance of the offer, you are free to choose a closing date that's much later. Again, since it's a seller's market, your buyers will likely be agreeable to your timing, since their primary objective is to get the house. That gives you additional time to find a house that's right for you, and you'll now be going into that process knowing exactly what proceeds you'll net from the sale of your existing home.
Selling your existing home first helps keep your offer to purchase your next home as clean, simple and attractive as possible. By eliminating the need for a condition to allow for the sale your existing property, you've removed any fear the seller may have about holding up the sale for a prolonged period of time, or the very real chance that the condition may never be fulfilled. Going in with a firm offer puts you in a much better position to negotiate the sale of your next home than you would with a conditional offer.
Your Right at Home Real Estate professional Mike Perrin can counsel you on the pros and cons of buying or selling first, and can help you to make an informed decision.