Upsizing to a new home means two separate real estate deals: selling your current home, and buying your next one. With that in mind, one of the most important decisions you’ll make is: should you sell your home before buying a new one?
While both options have their pros and cons, today’s market conditions have made one a little more favourable than the other. If you’re looking to upsize to a new home soon, here’s what you need to know.
What’s Happening in Today’s Market?
One of the factors that makes deciding whether to buy or sell first challenging is the market. Real estate is always changing and evolving – especially in Etobicoke. Even small trends can have a major impact on your success as an upsizer.
Right now, the market is moving somewhat slowly and as a result, prices are coming down. This is especially the case with larger family homes which have become more reasonable in price over the past few weeks. For upsizers, this is good news – but it comes with a catch.
The market’s slower pace may be favourable for buyers, but the implications for sellers aren’t as positive. Considering that you’ll be navigating both of these transactions as an upsizer, you’ll need to approach the market strategically if you want to get the best result.
Need tips on buying a home in Etobicoke? Be sure to check out these blog posts next.
- What Should You Know About Buying a Power of Sale Home in Etobicoke?
- Buying a House Under $1 Million in Etobicoke? Here’s What to Expect
- 7 Tips For New Homebuyers
My Recommendation: Sell Your Home First
Taking into account everything that’s going on in today’s market, I recommend that upsizers sell their current home before buying. This is the best way to minimize risk and make sure that you don’t overextend yourself financially.
As an upsizer, the last thing you want to do is find a great home only to find yourself stuck with one that seemingly won’t sell. In today’s market, it can take anywhere from 30-90 days to sell (on average). Even if you do have the savings to cover the upfront costs, getting stuck with two mortgages for a few weeks or even months can be a major financial setback.
Selling first more or less eliminates this risk. On top of that, when you sell first, you’ll know exactly how much money you’ve made from your sale. You’ll then have a much clearer idea of what your next home budget should be rather than accidentally overspending.
What Should You Know Before You Sell Your Home?
While selling first is a fairly safe way to upsize, there are a few considerations to be aware of. For example, one potential risk is that you may face a time crunch in finding and buying another home depending on when the new owners of your current place take possession. This can place upsizers in a stressful situation where they settle for a home they’re not completely in love with or may even require them to find temporary housing.
Luckily, there are ways to avoid this. If you choose to sell first, you should take the time to figure out what you need from your next home before it’s time to buy. Think about what’s important to you, your must-haves, and any other features that would be a welcome bonus. If you start the buying process with a fleshed-out home wishlist in hand, you’ll enjoy a much more efficient search, protecting you from adversity.
Hoping to make the most of your home sale? Check out these other blogs for even more helpful advice.
- 5 Signs It’s Time to Sell Your Condo
- How to Get Your South Etobicoke Home Ready For Sale
- 3 Home Selling Mistakes to Avoid
When Should You Buy Before You Sell Your Home?
Right now, it makes sense for most upsizers to sell their home before committing to another one. However, there are some unique instances where the option of buying first might make more sense.
If you’re a super picky buyer who is on the hunt for a property that’s relatively rare, it may make sense to scoop up your dream home should it hit the market before you’ve sold. If you wait to sell before making your move, you could lose out on the home and it could be a while before something similar becomes available.
Once again, taking this route comes with a lot of financial risk – especially in today’s market where homes are staying on the market longer.
Even if you think you’re only open to one specific type of home, it’s a good idea to chat with your real estate agent. As a professional, they’ll be able to match you with homes that fit your lifestyle – even if you have specific tastes. They may even help you find homes you didn’t even know were available.
Looking to buy or sell in Etobicoke? I can help! Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
Want to know how much homes in South Etobicoke are selling for?
Sign up for my Sold Report.
