A Guide for Move-Up Buyers: Should I Buy First or Sell First in this Market?

Posted by Jessica Chan on Tuesday, March 2nd, 2021 at 9:00am.

 

"Should I Buy First or Sell First in this Market?"

This is the question I am being asked every day by homeowners. These days, many people are working from home and finding that their current home is not big enough to accommodate an efficient working space, plus having their children around engaged in online learning. It can all become a bit overwhelming!

Then they start to question whether they should buy a home that will fit their needs, or should they sell their current home first before buying. This is the question I am being asked every day by homeowners.

My answer is SELL FIRST!  Below, I have identified a process that will help homeowners come to the right decision:

1.  The first step is to get an "Updated Market Evaluation" on your current home, to determine the equity you have.

2.  Talk to your bank to get an idea of how much you can qualify for a mortgage with your current income. Find out if there is any payout penalty after selling, or if you can carry the current mortgage to the next home.

3.  After you get to know the equity of your home, plus the mortgage amount you can qualify for, you now know the "Budget" you should stay within for the next home purchase.

4.  An experienced agent should discuss this process by advising you of the right time and the right price to sell. They will also discuss your budget to determine what you can get for the next home, ultimately to fulfill your requirements such as the desired neighborhood, the size of homes, and the upgrades that you would like to have.

5.  The next step is to prepare your house for sale, using a longer possession date to get more time to look for the right home after selling. 

6.  The key points in this process are to get the best value for your current home, and to have knowledge and understanding of the current market for the type of homes that you are looking for.  

If you have any questions, please feel free to call me at 403-241-9800 or email me at jessica@jessicachan.ca for more information! 


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