Should You Sell Your Home or Buy a New Home First?

How to Decide Home Buying & Selling Order

Even though buying a home before selling has become a popular opinion among homeowners, the truth is that when you want to get the best possible deal, look at the market.

In a seller’s market, finding your next home and buying it may be ideal before putting your current property on the market. This is because your property may sell quicker than you anticipated.

However, selling first may be the better alternative in a buyer’s market. The last thing you need is to lose your equity when you cannot sell a home or get stuck funding two mortgages.

Here are further insights to help you make an informed decision when deciding on the order of home buying and selling.

Buying a Home First

If you’re financially capable of maintaining the two properties for the interim period, buying a house first has a lot of perks.

When you buy a house first, you don’t have to look for temporary accommodation or furniture storage. This is always a major concern for families with a lot of furniture, the elderly, and young families.

Here are other perks that come with buying first:

Pros of Buying a Home First

• There’s no rush, so you can take your time finding your ideal home.
• As long as your home is in good condition and it’s a seller’s market, you’ll find a buyer for it.
• You still own your home, which removes pressure from finding a new place to live.
• Selling your house first means committing to finding and buying a new one. But when you choose to buy first, you’re not obligated for the entire period before you find and decide to buy your new home.

Cons of Buying a Home First

• After buying your next home, you’ll own two properties for the entire period before finding a seller. It can mean paying two mortgages and losing the equity in your home.
• If you’re under financial constraint from owning two homes, you become a motivated seller, which can lead you to accept a not-so-great offer for the property you’re selling.
• When you buy first, you may overestimate the worth of your current property; this will lead you to overextend yourself financially when purchasing a new property.

Selling Your Current Home First Before Buying 

If you’re tight financially and dont mind minor inconveniences like finding temporary accommodation, selling your house first may be the best option.

Pros of Selling Your Home First

• You can shop for your new house confidently, knowing you don’t have to carry two mortgages.
• Since you now have financing from selling your previous home, you’re better positioned to look for your dream home.

Cons of Selling a Home First

• If you wait too long to buy a new property, the rising cost may mean you’ll get less value for your money.
• You have to look for temporary accommodation, which would mean multiple moves.

Get Started On Your Property Ownership Journey

Are you facing a unique home ownership situation? Get in touch with the best Edmonton mortgage broker and get professional help to manage your situation effectively.

Can’t decide whether to sell your home or buy a new one first? We can help you navigate these and more home ownership situations whether or not you’re a first-time home buyer.

If you’re looking for an Edmonton mortgage broker, contact me, Sandra Forscutt. I can help you get that mortgage pre-approved and discuss other financing options for first-time home buyers or otherwise.

Don’t go in blind; call me.

Are you ready to purchase your first home? Reach out to me directly or start your application here: www.sandraforscutt.ca/mortgage-application/