Should You Buy Or sell First?
In the Victoria/Vancouver Island real estate market, one of the most common questions that buyers and sellers often ask themselves is whether they should buy or sell first. It's a decision that can have a significant impact on your finances and overall real estate experience. In this blog, we will explore the perspectives of both buyers and sellers, as well as the importance of considering mortgage options before making a decision.
Should I Sell First?
For sellers, the decision of whether to sell your current property before buying a new one can be a tough one. On one hand, selling first ensures that you have the funds available to make a down payment on your next home. It also removes the pressure of having to sell quickly, potentially leading to a more favorable selling price. Additionally, selling first allows you to accurately determine your purchasing power and budget for your new home.
However, there are also drawbacks to selling first. If you sell your home before finding a new one, you may find yourself in a rush to find a new place to live. This can lead to settling for a property that doesn't meet all your needs or compromising on location. Moreover, in a competitive market like Victoria, there's always a risk of not finding a suitable property within a desirable timeframe.
Should I Buy First?
On the other hand, buyers often face the dilemma of whether to buy their new home before selling their current one. Buying first allows you to secure your dream property without worrying about being rushed into making a decision. You can take your time to find the perfect home that ticks all your boxes. Additionally, by buying first, you can avoid the stress of temporary housing or the need to move twice.
However, buying first also has its downsides. If you purchase a new property before selling your current one, you may find yourself in a situation where you're carrying two mortgages simultaneously. This can put a strain on your finances, especially if your current property takes longer to sell than anticipated. It's essential to carefully analyze your financial situation and consult with a mortgage professional to determine if you can afford to carry two mortgages.
Before making a decision, it's crucial to consider mortgage options. Speak with a mortgage broker to explore bridge financing, which allows you to access the equity in your current home to use as a down payment on your new home. This option can provide peace of mind by bridging the financial gap between selling and buying. Additionally, a mortgage professional can help you understand your borrowing capacity and provide guidance on the best course of action based on your financial situation.
There is NO Wrong Answer
In conclusion, the decision of whether to buy or sell first in the Victoria real estate market depends on your individual circumstances and risk tolerance. Sellers benefit from selling first for financial security, while buyers have the advantage of securing their dream home before selling their current property. By considering mortgage options and consulting with professionals, you can make an informed decision that aligns with your goals and financial capabilities.
