Buy or Sell First in Toronto?
Timeless Dilemma of Real Estate
Decisions
Toronto's real estate market is competitive and ever-changing, leaving many homeowners and buyers asking: Should I sell my current property first or buy a new one before selling? Both approaches have their pros and cons, depending on market conditions, personal finances, and lifestyle preferences.
Buying First – Pros and Cons
Competitive Edge: In a hot market, acting fast can secure the perfect property.
More Control and Time: You’ll have more time to find your dream home.
Less Stress: Avoid the hassle of temporary housing if you can’t find a home quickly after selling.
Financial Risk: Managing two mortgages temporarily can strain finances.
Bridge Financing: You might need short-term financing, which comes with additional interest.
Pressure to Sell Quickly: Selling under pressure might result in accepting a lower offer.
Selling First – Pros and Cons
Financial Certainty: You’ll know exactly how much you can spend on the new property.
Less Financial Risk: No need to worry about managing two mortgages simultaneously.
Stronger Negotiation Power: When you’re not in a rush, you can hold out for better offers.
Temporary Housing: If you can’t find a new home quickly, moving twice might be necessary.
Limited Buying Options: You may feel pressured to settle for a property that’s not ideal.
To Consider Before Deciding
Current Market Trends:
Seller’s Market: If homes sell fast, you might want to buy first to avoid being without a new home.
Buyer’s Market: Selling first may give you more negotiation power.
Personal Finances:
Can you afford to carry two mortgages or arrange bridge financing?
Do you need the equity from your current home for a down payment on the next one?
Are you comfortable with uncertainty, or do you prefer security and stability?
Do you have a backup plan if your timing doesn’t align perfectly?
Make the Right Move in a
Challenging Market
In Toronto’s real estate market, both buying first and selling first come with unique advantages and challenges. The best option depends on your financial situation, current market trends, and comfort with risk. Working with an experienced real estate agent ensures you receive expert guidance, helping you make the most informed decision for your circumstances.
