Are you a first time seller?
There are lots of resources for first-time buyers, but not nearly as many resources for first-time sellers. When you bought your first property it was no doubt a scary prospect, but it was a lot simpler than selling for the first time. You were renting, so you didn’t have to worry about selling your current place to get the money for your down payment. And if you were living at home, you didn’t even have to worry about overlapping rent and mortgage payments! Your life may also have been simpler. You might have been single, or perhaps you and your partner didn’t have kids yet. You may not even have had a dog to consider!
Most first-time sellers have a lot of questions. Here are the most common ones:
- Should we keep our current place as an investment and buy a new place to live that suits us better?
- Can I own two properties at once?
- How can I avoid moving twice?
- Where will the money come from for my down payment? Everything I have is tied up in my condo!
- Do I have to come up with a deposit on an offer?
- How can I make sure I’ll get what I need out of my sale?
- And the winner of the “Most Frequently Asked Question by First-Time Buyers” is… Should I buy first or sell first?
The secret to a smooth move to your next home lies in that last question. Figure that out and you’ll avoid a lot of headaches and sleepless nights! There’s no “one size fits all” answer, but there are 3 clear options:
- Keep it!
- Keep your current property as an investment and start house hunting for your next home.
- Buy first.
- Keep your current property until you’ve found your next home, then go ahead and make that next purchase, or…
- Purchase “subject to sale” if the seller will accept that. But beware, your offer could get bumped if a stronger offer comes along, or…
- Buy your next home outright, aiming for a long possession date so you can have your current home sold before you take possession of your new home, or…
- Buy your next home and take possession of it before your current home is sold. This means you don’t have to coordinate your schedule to accommodate showings since the property will be vacant. It also avoids any risk of moving twice.
- Sell first.
- Put your current home on the market and start house hunting once you have an offer on your current home. Then you can make an offer “subject to sale” but it will be with the knowledge that you already have an offer in the works, or…
- List your home and don’t start looking until it’s sold, aiming for a long possession day so you avoid moving twice, or…
- Sell your current home and plan on an interim move into rental accommodations, so you can take your time house hunting and avoid any risk of owning two homes.
The first step in figuring out which option is best for you is to find out if you have the financial capacity to own two homes. If your lender says it’s ok to keep your current home and finance a new one at the same time, that will let you know if that’s even an option for you! Second, ask yourself this question: What would keep you up at night? Temporarily owning two homes? Or temporarily owning none? The answer to that simple question will help you see which option might be best for your family.
Before you make any decisions, talk to your favourite Schmidt REALTOR® to get a clear understanding of your risks and opportunities. We can help you understand the market your current home is in, as well as the market that you’re hoping to move into. How fast are homes like yours selling? And for what price? And how fast are homes like you’re hoping to buy selling? And for what price? While this is your first time selling, it’s not ours 😉 We’ve helped hundreds of people just like you figure out how to get from A to B safely, and happily. Reach out any time to chat with us. We’ll always have your back!
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