Should You Sell First and Buy Later? Or Vice-Versa?
Friday Sep 22nd, 2017
When you’re thinking of selling your home and buying another, you face the inevitable question: Should I list my property first or buy my new home first? Let’s take a look at both options.
If you attempt to buy a property before listing your home, you run into a couple of challenges. First, sellers may not take you seriously as a potential buyer. After all, you haven’t put your own home up for sale. As far as they’re concerned, you might merely be testing the market.
Second, your property might not sell as quickly as you thought it would. If there is an early closing date on the home you purchased, you might end up owning, and paying a mortgage on both properties, at least until your home sells.
If, on the other hand, you list your property before buying a new home, sellers will know you’re serious. That puts you in a competitive position in the event of multiple offers. Also, if your home sells quickly, you’ll have the peace-of-mind of knowing exactly how much of a new home you can afford. You’ll be able to shop with confidence.
Of course, like the first option, there is a chance that the closing dates won’t match and you’ll end up owning two properties for a period of time. However, solutions such as bridge financing are available to help. So, there is no perfect answer. A lot depends on the state of the local market. Looking for a good REALTOR® who can help you decide which is the best move for you? Call today.
Will the Neighbourhood Go Up in Value?
When you purchase a home, you’re hoping it will continually go up in value — just like a good investment. However, there’s something else that you want to see go up in value as well: the neighbourhood.
In fact, the neighbourhood plays a key role in what the home will be worth in years to come. If the neighbourhood goes down in terms of desirability, so will the market value of the home. That’s why, when shopping for a new home, it’s important to get a feel for the value of the neighbourhood, and whether or not it’s on the upswing.
How do you do that? One way is to simply take a walk. Look at the properties. Are they well maintained? Is the landscaping groomed and attractive? Those are signs of “pride of ownership” — a clear indication that owners value their homes and the neighbourhood.
Another way is to do some research. Has crime gone up in the neighbourhood? Are there improvements planned, such as new parks? Is the neighbourhood attracting the kind of people you want as neighbours? How does the neighbourhood school rank? Some of this information may be difficult to get on your own. A good REALTOR® can help you. Call today.