Should you buy or sell first?
Downsizing? Family growing? Relocating? These are some of the many reasons for wanting to move.
The key to your decision on whether you should sell or buy first is planning ahead and we’d like to help you explore all of your options.
For those that don’t have the financial ability to temporarily carry two properties, the options will be limited.
Option #1 Buy first with interim or bridge financing
Getting into an accepted offer on a new home without a subject-to-sale clause can be very costly and is not recommended unless you have made the necessary financing arrangements for the interim.
Arranging temporary funds will allow a seller with an unsold home to proceed with a purchase. This means that they will have the flexibility to move over the period of time between the possession dates of both properties, which can also be used for renovations.
The most important consideration here is that the seller must have a home that is marketable and being reasonably marketed, otherwise it could start to get expensive, especially if the market declines.
Occasionally we are able to negotiate a short possession date on behalf of a seller to reduce or eliminate the need for temporary financing.
Option #2 Sell first
Obviously the safest choice but it can also be the most rigorous. Inevitably it means an interim accommodation will be required, and perhaps two moves. This is often the case when someone is relocating and staying in temporary accommodation with their personal belongings in storage.
Focusing on selling your existing property first is often the best strategy in order to maximize your return. With cash in hand it also qualifies you as a serious buyer in the eyes of a seller, and should strengthen your negotiating position.
Option #3 Subject to sale clause
In some markets choosing to write an offer with a subject to sale clause will work, but from my experience in the Metro Vancouver area, it seems sellers are less open to accommodate this option.
Trying to match the dates exactly to accommodate both parties can also be challenging.
This balancing act is not for the faint of heart, and why you might consider letting us share some of our expertise gained as REALTORS®.
We will help you with your plan, and this includes an up-front assessment with an independent mortgage broker of your financial situation to determine what is realistic for you and so you can understand all of the costs involved.
For more information on how we can help you whether buying or selling, contact John at 778-878-0778 or email.