Buy or Sell First?

Often it can be difficult to decide what do do first. If you sell your home first, and are not able to find a suitable property, you may find yourself under a tight deadline to buy another property, or be forced to seek temporary accommodation. If you buy first, and are not able to sell, you can end up with two mortgage payments. Your financial institution may like to see your original home to be sold firm, before pre-qualifying you for a new loan. You can also end up losing good homes because of not being able to match closing date or other terms, e.g. present an unconditional offer, in case of multiple offers etc. Your decision can also be influenced by the buyer's or sellers market. In a buyer's market, many people prefer to sell first to limit their risk. In a seller's market, many consider buying first.   A classic real estate "chicken or the egg" or Catch 22 situation According to Amit, a parallel path may be a good compromise. But selling first is always a safer situation when home's equity is being transfered to the new home. Having said that, every home owner can have a different strategy when it comes to buying and selling. And Amit will be happy to discuss this in more details, in person.

The process starts by first calculating approximate net proceeds from the sale of your property, i.e.; cash in your pocket after deducting all expenses. Based on the numbers, your mortgage terms, and other needs, Amit can arrange a sample tour of your new home listings. This will educate you about the current market and see what's out there, before selling your property. 

Many other real estate specialists also strongly recommend that you sell first. This way, you can have an accepted offer on your current property before you make a bid on your new home. And when it is time to make an offer on your dream home, you will not need to worry about losing it to another buyer, because you will be making a firm offer, and not one that is conditional upon the sale of your current property. 

Banks also offer 'bridge financing' only if your current home has sold firm.

Who should consider buying first?

There are many people who feel comfortable to buy a new home first, before selling their current home. These buyers are in no hurry and do not mind carrying two mortgages for a few months. Most of these buyers have either paid up their current homes or carry negligible mortgage loans. These type of sellers don't want to compromise upon choosing a new home in the market. Amit has the experience in working with such clients and he can discuss his time saving strategies, which can help you buy first, and sell later. Working with Amit will definitely lower your stress levels when it comes to buying and selling a home in Mississauga. Amit promises that the sale of your property will become a productive and financially rewarding experience.