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

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Over the past few decades, the most common home buying and selling process was to put your current home up for sale while frantically looking at other houses for sale to find one you could buy. When you found one you liked, you'd put a contingency on it based on the sale of your own house, plus give yourself time to move. This system works well, but now that we're in such a hot housing market, buying a home often includes entering into a bidding war. This means putting contingencies on your bid won’t work in your favour in most cases. These days, we're seeing a lot of people buying a new home before they sell their current one. Is this a good idea? Let’s weigh the pros and cons.
 

PROS

 
You’ll Have More Time to Plan Your Move
 
Often times, people move over a weekend or another short time frame, and it feels hectic and rushed. You need to make time to empty and clean your old home while unpacking the things you need in your new home. If you still own both homes, you can move at a more leisurely pace and take your time cleaning up your old house before you put it up for sale.
 
You’ll Be Able to Renovate Without Living There
 
If the new house you've bought requires fixing up or a remodel before you move in, it’s a lot easier to do if you’re not living there. Laying new flooring and painting are a lot easier when furniture is out of the way, and trust us, it’s not super fun having your kitchen undergoing renos while you’re still trying to make your family meals. Doing all the repairs and renovations before you move everything into the home will actually save you a lot of time – and stress.
 
You Won’t Risk Moving Twice
 
Occasionally, when you buy a house while selling your own, you aren't able to match the sale and possession dates. That means you may not have a home to live in for a few weeks or even a few months. In this situation, families stay at hotels or with friends until it’s time for them to move into their new home, forcing them to move twice.
 

CONS

 
It May Get Costly
 
Keeping up two homes — even for a short period of time — can be costly. Not only will you have two mortgage payments, but you'll also have insurance costs on both homes. We won't even touch the possibility of hydro and other utility costs.
 
You May Lose Money In The Market
 
It’s possible for your home to depreciate if you sit on it too long. If you're going to wait to put your house up for sale, be sure to consult with your MLS REALTOR®. They keep up with how well other houses for sale in your neighbourhood are doing so you sell before the market dips.
 
Homes Typically Sell Better When Staged
 
Staged houses for sale usually sell better than houses that aren't. If you've already moved into your new home, your old home may not have any furniture in it which might make it harder to sell.
 
Consult With Us At The Garman Group
 
If you have the means to easily pay two mortgages, this opens up some options for you. The team of qualified MLS REALTORS® at the Garman Group can assist you in figuring out market trends and other factors to figure out what the best course of action is for you. Contact us today to get started!