The question of should you buy or sell first when it comes to real estate is often at the forefront of discussion. For homeowners, this decision can be difficult and even a bit nerve wracking. Your home is your most valuable asset and in the current market – where there is a significant housing shortage – homeowners are more concerned than ever if they will be able to find another home after selling. So how do you strategically position yourself for success? How do you decide which do to first? Well, it starts with arming yourself with the knowledge of a variety of key factors in the current market and using that knowledge to make an informed choice.
Key Factors to Consider
- What type of property are you selling?
- What type of property are you considering buying?
- Is the seller willing to negotiate a conditional sale based on what happens with your own home sale?
What type of property are you selling?
First, you’ll need to consider what type of home you are selling and research what similar homes in the area are selling for. Bōde provides transparent market data and sold data to help you along in this process. This information helps you determine if your home falls into a seller or buyer’s market, often based on pricing and number of homes on the market. Knowing your home will likely sell quickly may give you confidence to buy first.
What type of property are you buying?
Similar to looking at what type of property you are selling, you also need to consider what type of property you will be looking to purchase. Will you be seeking a similar style home, upgrading or downsizing, or changing your location within the city or province? Depending on these factors, your dream purchase property may be easier or more difficult to find and in a hot market could become challenging to actually purchase. If the home sellers are in a position to receive multiple offers on the type of property you are looking for, it could be more difficult to secure a new home in the time frame you need – therefore you may consider trying to buy before selling your current home. If you are seeking a property that is in abundance on the market you may feel more comfortable selling first, with the knowledge that there will be many options available to choose from when looking to purchase.
Is the seller willing to negotiate a conditional sale based on what happens with your own home sale?
This is sometimes a tricky scenario. In a hot market, it is more difficult to impose significant conditions and often the seller may have other offers to consider that come without those conditions. Sometimes, if the seller decides to accept the offer, they may want to implement what is called the “48-hour clause” meaning if the seller receives another offer, you (the buyer) will have 48-hours to remove your sale of home condition in order to proceed with the purchase. On the flip side, if a seller is motivated to make the sale they may consider accepting an offer conditional on the sale of your home. This is where it becomes important to understand the market you are transacting within.
Whatever you decide, if you rely on data backed information that is relevant in the current market, you will be able to make the right choice for your personal situation – and if you need help you can always reach out for support from our team at Bōde!
Why should you list your home with Bōde?
Sell for more, Save in Commissions, and Sell Faster.
