Should I Purchase My New Home First Then Sell My Existing Property?
Author: Boychuk Mortgage Group |
This is a tricky question and will often come down to factors pertaining to your situation, the current market, what sort of back-up plan you have in place, and your overall needs.
Where there is no right answer here, selling your home first will be the safer option. Selling your home before making your next purchase will give you a better understanding of your overall budget. Selling first will also allow you to use the proceeds from your sale towards the purchase of your new home. On the other hand, the risk of selling your home first means you may not be able to find a new home and complete on that purchase with the same closing dates as your current sale.
Alternatively, purchasing your next home first will give you the reassurance that you found the home of your dreams, but it comes with the risk that you may not sell your home at the expected price you were hoping for as you are much more motivated to sell now. In this case, you may also not be able to align the closing date of your home sale with your new home purchase. Even more worrisome, you may not be able to sell at all if there are any major changes to the market during this time.
If you find yourself in a position where you can’t close on your new purchase because your current home won’t sell, it’s not just your deposit that you will likely forfeit, but you may find yourself in a legal dispute.
Because there are many moving parts to your next real estate purchase, speak with one of our trusted advisors and we can ensure that you are making the right decisions for you and your family.