move up buyer tips
SELL FIRST, BUY LATER
The “Sell First” strategy is
ideal for the move-up buyer
who doesn’t want to get stuck
paying two mortgages
simultaneously. Selling the
existing home first eliminates
the risk of having to carry two mortgages. It also reduces the chances of having to lowers your asking price if the sale isn’t happening quite fast enough for your liking. This is a good option for move-
up buyers who are banking on the proceeds of their sale to fund their new (and likely more expensive) property. By selling first, you’ll know exactly how much money you have to purchase your next home.
TIME AND ALIGN YOUR PURCHASE AND SALE
All things considered, this approach to “moving up” is ideal, but getting there is another story. Aligning
your purchase and sale closing dates can be tricky. Remember that there are three parties to these transactions: you, the person you’re buying from, and the person you’re selling to. You’ll also have
to move out and move in on the same day. In this scenario, time is your best friend and flexibility your saviour. This means you’ve planned ahead – you’ve researched neighbourhoods, gotten pre-approved for a mortgage, and you’ve started the organizing and decluttering process before the big move.
BUY FIRST, THEN SELL
If you’re buying in a seller’s market, then buying first might be the way to go. By buying your new home before selling your old one, you won’t feel rushed into settling for a sub-par property, or having to seek alternative temporary housing options while you shop a tough market. This move-up buyer still lives in his or her existing home, allowing them time to shop around, and continue looking until they find that perfect place. This move-up buyer typically requires a bridge mortgage.
Your move-up strategy will depend on a number of factors, such as your financial situation, the current housing market conditions, personal comfort level and even your personality. Consider this when making your decision. Plan ahead and work with a knowledgeable RE/MAX agent to ensure a smooth transaction at both sides of
the offer table.