It’s not quite the chicken and egg (the chicken came first, don’t @ us), but in real estate, it is one of the age old questions. When you are looking to move, are you better to secure your dream home first and then sell your existing residence or should you sell first and know what you have in the bank before you go shopping?
The advantage of selling first is that you know exactly how much spending power you have before you go looking. You alleviate the stress of needing to sell for a certain price or within a certain timeframe. But what if you can’t find anywhere you like? It would be a stretch to say that you are homeless at this point, but if you can’t find your dream home, you are forced into either renting, overpaying or settling for second best.
If you buy first, you only buy when the perfect home comes up at the right price. It doesn’t matter if that’s tomorrow or next year and there’s less need to compromise. But what happens if you can’t sell? You need to either carry two properties, rent one or sell at a reduced price.
The Red Square Take
In this market, our advice is to buy first. The levels of inventory remain very low in most markets in Toronto. For the most part, demand still outstrips supply, which means that it’s easier to sell than it is to buy. So long as you are conservative with the valuation of your existing home, you can be confident that it will sell. In these situations we will always give clients a price range that includes a worst case. Use this as your base and go looking for your dream home!
Red Square Team are West Toronto neighbourhood experts! We focus on providing you with an ultimate service model to get you the best possible results. Are you thinking of moving? Interview us to see how we compare. You won’t be disappointed!
By Alex Porritt, Red Square Team Sales Representative