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Should You Sell Your Home Before Buying a New One? Selling Your Current Home

Posted by Justin Havre on Monday, July 3rd, 2023 at 8:56am.

How to Sell Your Home Before Buying a New OnePicture this: you've outgrown your current home. Maybe your household has grown, your needs have changed, and you're yearning for a fresh start in a new neighbourhood. But here's the twist – you're faced with a decision that can make your home-buying and selling journey much more stressful: should you sell your home before buying a new one?

Deciding to sell your home and purchase a new home is a significant commitment that requires careful consideration. It is important to weigh the pros and cons of selling an existing property before committing to buying a new one.

By doing so, potential buyers can gain clarity on their exact budget, minimize financial risk by avoiding paying two mortgages at once, increase profits from selling their home, and make offers more appealing to sellers. All these factors must be considered when deciding whether to sell a current residence before purchasing another.

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For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

You Know Your Exact Budget When You Buy a New Home

One reason you should sell your house before buying a new one is because you'll know the exact budget you have to work with for your home purchase. Having this precise budget will enable buyers to narrow down their search and make more competitive offers on homes they're interested in. Furthermore, it will prevent them from wasting time looking at properties outside their price range or investing in one beyond their financial means. Ultimately, having an accurate idea of what can be spent on a new dwelling reduces stress during the house-buying process.

You Don't Have to Worry About Paying Two Mortgages

Inevitably, managing two mortgage payments at the same time when buying and selling can feel like an insurmountable task, making selling your current home before buying a new one an absolute godsend. Not only does this allow you to accurately plan your budget and prevent any unexpected surprises in the future, but it also eliminates:

  1. The stress of having to manage two mortgage payments;
  2. Additional costs associated with owning two properties, such as insurance and property taxes;
  3. Unnecessary risks that come from not knowing how long it will take to sell your previous home; and
  4. The feeling of anxiety about whether or not you have the necessary funds for a new home purchase.

Unlike buying a home before selling, selling your current house beforehand gives you peace of mind and prevents financial complications so that you can confidently make an offer on a new home without having to worry about anything else.

You Can Increase Your Profits From Selling Your Current Home

By opting to sell your old home first, one has the potential to significantly increase their profits. By waiting for the best offers and taking measures to enhance the appeal of the home, such as addressing necessary repairs and staging your home, sellers can maximize their gains from the sale.

Furthermore, by not having to rush into a decision or settle for a low offer, you have more room to negotiate terms that are beneficial for you. This includes securing a higher sale price, fewer contingencies, and a shorter closing period. In this manner, sellers can optimize their profits from selling while making sure that they do not compromise on essential details of the transaction.

Your Home Offers Will Be More Appealing to Other Sellers

Prioritizing the sale of a current home enhances the attractiveness of offers on new properties by creating an impression of commitment and certainty. Sellers are more likely to accept contingencies when they perceive that buyers have invested time and effort in their previous transactions, as this reduces the risk of the transaction falling through.

Having already sold their current property, buyers can make more competitive and informed offers since they possess a clear understanding of their financial situation. Furthermore, sellers value buyers who have taken this step as it demonstrates dedication to purchasing a new home and fosters trust between them.

This encourages sellers to be more accommodating with contingencies and other aspects of the sale. Selling your current home before making an offer on a new one therefore presents several advantages that increase the likelihood of acceptance while reducing stress during the buying process.

Sell Your House Before Buying With The Justin Havre Real Estate Team

The sale of a home before buying a new one can be beneficial in many ways. If you're interested in selling your home and embarking upon a new real estate journey, reach out to The Justin Havre Real Estate Team for help with all your home selling needs.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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With Confidence.

Sell Your Home With the #1 eXp Realty Team in Canada.

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