You know you want to move, but if you sell first, there may not be a home for you to buy that you like. You definitely don’t want to be forced to settle for a home that’s not exactly what you want. On the other hand, if you buy a home first, then you’re faced with the undue stress of selling your home in a certain amount of time; all the while hoping that you get the right dollar amount to make the move make sense in the first place. This is one of those, “which came first, the chicken or the egg” questions… and it’s hard to know what to do first.

There are of course many factors to be discussed with your Realtor before any decision can be made AND having a Realtor that knows your market conditions and understands the values of homes in your neighbourhood is key… questions to ask are:

1. How much inventory is currently available in my neighbourhood of choice?
2. What is the average number of days properties are taking to sell in my current neighbourhood?
3. Is my market more of a buyer’s market or seller’s market?
4. What average percentage of the asking price are most sellers achieving in my current market?
5. Should I decide to sell first, what is inventory projected to be when it’s time to buy? What’s the level of inventory like at that time of year?
6. If I buy first, what’s the market expected to be when it’s time for me to sell my current home? What is the activity level like at that time of year?

There are advantages and disadvantages to either decision you make and ultimately, it comes down to what’s your biggest stressor: money or living space.

If you buy first:

Advantage:

1. You know exactly where you’re going to move to.

Disadvantages:

1. You have the stress of potentially having to close on the new property without having the one you own sold first.
2. You may be more likely to sell your current home for far less than you would have if you sold before buying. It’s a fact that some sellers take tens of thousands of dollars less for their properties when they are under the stress of selling… you’re in a weaker position.
3. You may have to spend money to bridge finance in order to close on your new property if you’re not able to line up the closing date on the sale of your current home.

If you sell first:

Advantages:

1. You know how much money you have to spend on a new home.
2. You don’t have to sell unless you get a price that is agreeable to you.
3. You can have a long closing date so that you have time to find your new home… 90-120 day closings aren’t unusual and ‘they’ say that if you can’t find a home to buy in 3 months then you may have unreasonable expectations of the market.
4. You don’t have to stress about money.

Disadvantages:

1. You have to find a home in time to make sure you’re able to line up your closing dates.
2. You may have to rent a condo or house for a short time.