Toronto: Homebuyers generally have a million questions when they decide to upgrade to a new home. The most important of them all is whether to buy a new home first or sell their existing home. This article will list the pros and cons of first buying a home and also list down the reasons why you should sell first. After knowing these pointers, depending on the case-sensitive concerns of the buyer and his or her preferences, the buyer can make a well-consented decision.
3 reasons to buy a new home first
Hot properties don’t wait for you: It is generally a seller’s market and once good properties are listed, they don’t stay in the pool for long. Home Buyers opt for good properties very quickly and the sale is closed within days, so if you spot a home of your choice, do buy it first.
Mortgage approvals: The approvals for all your interest rates and monthly premium takes close to 3 months to get fully approved, so planning to buy a home earlier than you sell is advisable.
Renovation & interior: Everybody wants to move into a well-furnished, cosy home that is renovated and done to match their needs. This process of furnishing and renovating a home takes time, thus creating a buffer of a few months ahead to your move is sensible.
3 reasons to sell your home first
Worth of your old home matters: You may feel your old home is worth something but your realtor might not feel the same. The market rate of your home will help you determine how much you need to invest in your new home. This smart move of liquidating your funds before purchasing your new home will make you certain on which homes and prices to choose.
Hassle of being unable to sell your old home: In the worst cases, some people face the problem of being unable to sell their house. The new mortgage will start and you will be super stressed unable to tackle the recurring weight of the mortgage.
Avoid excess cost: If the sale of your old home doesn’t close on the stipulated date, you might be forced to borrow equity from your new home, this will be charged as the bridging financing cost. Eventually, you should repay this amount as an extra mortgage and complete it. So, meticulous planning should be done to avoid such hassles.
Having understood the above pros and cons, it is also important to note down the answers to the following question. By carefully weighing all these pointers, it is good for an individual to decide on whether to buy or sell their house first.
Questions you need to think about before making a decision:
Where will you park your liquidated money after a sale?
Where will you live during the transition?
Where will you leave your things during the transition?
What if your house takes longer to sell?
How will you manage the mortgage penalties?
How much of other savings or investments do you have?
Can you handle the financial stress if things go wrong?
Also, get to know the market trend
Once you have earned perfect clarity about the above-said concerns which are specific to you, you can make your decision.
Furthermore, if you have specific queries regarding buying or selling your old home or need professional support in upgrading to your new home
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