If you’re planning to sell your home in Brampton and buy another one at the same time, you would be in a dilemma. Real estate in Brampton has changed a lot, especially after the pandemic started, compared to when you purchased your property. A typical question that would’ve crossed your mind “should I buy my house first before buying the second one?”
Unfortunately, there’s no one answer for the question. It depends on the current market situation. To help you reach a decision, I’ve listed the pros and cons of selling first and buying later and vice versa.
Buying a home first
1. Gives you time to shop around
You aren’t on a deadline to purchase your home immediately after selling your first one. Take your time and research what’s best for your family.
2. Secure a lower mortgage interest rate
You can take advantage of the current mortgage rates and lock them for up to 120 days. That’s enough time to find a property that matches your requirement.
3. Aren’t pressured into buying a property quickly
If you sell your home in Brampton first, you’ll be pressured into buying a second home soon, otherwise you’ll have to pay for temporary housing.
4. Time for renovations
If you purchase an older home in Ontario, you’ll have to make some renovations to make the place liveable. With spring starting, contractors will be busy and probably delay the renovation.
1. Pay mortgage for two properties
We’re in a seller’s market currently and listed properties are rarely on the market for more than 7 days. However, you never know how long it will take to sell your house. Until then, you’ll have to continue paying two mortgages.
2. Got to accept the first reasonable offer
As a committed buyer looking to sell your first home quickly, you’re likely to accept the first reasonable offer you receive. However, if you’re planning to experiment and want to sell at a price higher than the listing price, you won’t have enough time.
Selling your home in Brampton first
1. Clear idea of what you can afford
If you’re lucky, your house will sell at a higher price than the listed amount. A few extra hundred thousand dollars completely affect what you can afford.
2. Enough time to review offers
Since you’re in no hurry to sell, you can review the offers you receive carefully. You can also choose to take the property in Brampton off the market and put it back up in a few weeks.
1. Might have to sell the property at a lower price
If you feel rushed into buying a second property for a variety of reasons, you’re likely to sell it off to the first buyer. However, it happens only when your property has been sitting on the market for over a month.
2. Need to find temporary housing until you find another house
It (absolutely) never happens that you can match the closing dates of both the properties. You’ll have to find a temporary housing solution or request the buyer to push their move-in date (again, not likely to happen). Another option is to lease the sold property from the buyer but that’s equal to paying a month’s mortgage.
Whatever route you choose, be patient and hire an experienced and passionate real estate agent. I am a woman realtor based in Brampton, Ontario and would love to help you through this journey. Please contact me for more details.