If you're reading this because you're looking at purchasing another home, potentially your "forever" home, you are at an exciting time of your life! This is why we like to call you a Move-Up Buyer - because you're movin' on up! When you were a first time home buyer, you were probably young, broke, and a tad naive. You had to make some sacrifices for the sake of your affordability, and that's okay. That's life! But now, you've got some savings and some home equity on your side. Looking at homes this time around will feel a lot less like compromise, and more like mindful selection. With that being said, there are still some challenges you'll need to face with a strategy. Here are the three selling strategies for you:
1) Sell Current Home First, Buy Next One After
This strategy is ideal for the move-up buyer who doesn’t want to get stuck paying two mortgages simultaneously. It's also the strategy many people end up going with, because chronologically, it just makes sense. Selling your existing home first eliminates the risk of having to carry two mortgages if you don’t sell this home in time. Additionally, it lowers the chances of having to reduce your asking price if the sale isn’t happening quickly enough for you. This is a good option for move-up buyers who are banking on their home sale to fund their new (and probably more expensive) property. By selling first, you’ll know exactly how much money you have to purchase your next home.
2) Buy Next Home First, Then Sell Current Home
If you've got a seller's market happening in your area, this strategy may be the way to go. By purchasing your new home before selling your existing one, you won’t feel rushed into settling for a sub-par property, or having to seek temporary housing options while you house hunt. This move-up buyer still lives in their existing home, allowing them the time to continue hunting until they find the perfect place. Typically, this strategy requires a bridge mortgage.
3) Alignment of Both Purchase and Sale
Ideal, but tricky to carry out. Not only are you dealing with the regular parties in a home transaction, but you have to align the schedules of yourself, the people you're selling to, and the people you're buying from! You’ll also have to move out and move in on the same day. In this scenario, movers are your best friend, time is your enemy and adaptability is a must-have mental skill. This is the most satisfying strategy to pull off - like everything at your wedding happening exactly when and how you planned it. This strategy realistically means you need to plan every detail way ahead of time – researching neighbourhoods, mortgage pre-approval, cleaning/organizing/packing, etc.
All in all, your finances, current market conditions, your comfort level, and your time are ultimately what will determine your move-up strategy. A Century 21 Realtor will be there to guide you through the process, and make sure both sides of the offer table go over smoothly!
Posted by Admin Staff on
Leave A Comment