To make a long story short, buy and sell at the same time…

The ultimate goal in Toronto, is always to buy and sell during the same market conditions. For example, if you are planning a move and decide to buy your next home first, make sure have a plan to sell your existing home quickly after. If the market takes an unexpected downward turn, yes, this has happened, and it’s incredibly hard to time, this will ensure you aren’t selling for lower than expected.

Making the choice to buy or sell first is a huge decision very dependant on your individual scenario. This is a time to really hone in on your personality type and assess the risk of the next purchase.  This is also where an experienced realtor can really help.

The biggest mistake we see, for those who are buying and selling at the same time, is a focus on each transaction separately. In reality, the buy and sell should work in tandem. What does this look like? As you are actively shopping for a new home, you are also prepping your current home, ensuring it is ready to go to market within 10-14 days after you purchase. The goal here is to buy and sell in the exact same market.

So what’s the smart choice for you?

1) Analyze your personality type:

• Are you a risk taker? If you buy your next home first, you still have to sell your existing home. There is risk involved with that. If your closing dates don’t perfectly align, you will own two homes for a short period of time, which means two mortgages. Are you comfortable with that?
• Does the profit from the sale of your current home directly impact your budget for your next home?
• If knowing exactly how much money you have and the thought of owning two homes stresses you out, then you should probably consider selling first.  Negotiate a long closing period, ensuring you have plenty of time to find your next home.

★ Read these additional resources on buying a home:

• Why You Should Take Advantage Of Your Buyer Visits
• The Ultimate Guide To Buying a Home When You Have Kids
• Buying With Us

2) Are you looking for a needle in a haystack?

• How picky are you? This is the time to be real with yourself. Have you been viewing homes in person and liked any of them? Have you analyzed what your new budget will get you and are you happy with that? Does your budget align with what you are looking for in your next home?
• Do the homes you like come up often or are you looking for something truly unique. For example, a very specific neighbourhood, a house with a pool, certain type of renovation, etc. If this is the case, then you should probably wait until this special home comes up and buy first.

3) How sellable is your current property?

• Does your home have some potentially negative quirks?
• Is it located on a busy street?  Has less than 2 bathrooms? Requires significant updates? A-typical style for the neighbourhood (yes this is really a thing!)
• Understanding this piece will require some research with your realtor. It’s not just about selling a house, but also how long it will take and if you can afford for your house to sit on the market or sell for less money than you expected.

★ Read these additional resources on selling your home:

• Key Steps To Selling A Home In Toronto
• Top 5 Staging Tips To Help Sell A Home For More Money
• How To Successfully Price And Sell Your Home
• Selling With Us

4) Take into account the seasonality of the market

If you are considering a sale in the summer and a purchase in the fall, we generally advise against this. Typically there is a seasonal low in Toronto’s real estate market during July and August, with a significant decrease in inventory during that time. Summer is often the time when buyer fatigue is at its highest and buyers are taking a house hunting break. This often results in less offers and lower sold prices. Selling first in the wrong season could cost you money if the market is expected to increase in the weeks ahead.

★ Read more about seasonal real estate lows on this recent blog post.

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