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Be Ready to Buy and Sell A Home at The Same Time


Under Real Estate

Written by

September 28th, 2021

Finding a perfect house to call home in Canada’s booming real estate market is easier than ever. However, the search is the simple part. To get the home you want, you will have to go through a daunting buying process. To make things harder, you might need to put your old house on the market to provide the financial means. And even though to buy and sell a home at the same time might seem impossible, there are few steps to follow that will help you navigate these endeavors smoothly.

Comparing the housing markets

Before you dive into the house hunt, it’s essential to familiarize yourself with both local sellers and your potential buyer’s housing market. The timing is everything when putting a home for sale since markets can significantly fluctuate over a couple of years. Picking the right moment with a higher housing demand will ensure your home is sold for a good price.

The same goes for the property market of your future home. Exploring options like location, size of the home, amenities, and realistic values matter a lot, and it will dictate the final financial outcome of your sale and purchase. If you manage to sell a home for a great price, you might not need loans and mortgages when buying a new one. That’s why it’s crucial to get acquainted with your options on time before estimating the real value of your property and putting it on the market. Overpricing will prolong the time of the sale, which is never good, especially if you’re in a hurry to sell the property.

Acquiring professional help

The real estate business can be a very profitable endeavor if you know what you’re doing. Still, if you’re insecure about the whole process of dealing with paperwork, timing, cost estimate, and all other requirements to buy and sell a home at the same time, you might need a helping hand to guide you through the whole thing. With a reliable real estate agent, you can be sure things will go much easier. They will not only save your time but your money as well. It’s essential to have someone experienced to guide you step by step through the whole procedure. Also, a good realtor can give you meaningful advice and help you find what you’re looking for faster since they are the experts who know the field better than anyone else.

Estimating your financial possibilities

Before you start looking for prospective properties, it’s important to know your financial limits. This step should be done right after you get familiar with the local market. After estimating the realistic value of your home, explore other sources of available funding. Liquid cash, equity, potential loans, and mortgages. Consider everything in order to know your options. Only after you’ve examined all financial sources can you start planning a house hunt. Rushing into a purchase without the proper estimate could cause many problems, forcing you to take loans and have unnecessary additional expenses.

Be ready for additional costs when you buy and sell a home at the same time

When going through meaningful life changes, we often neglect small costs that can turn into serious expenditures. House maintenance, staging without breaking a bank, inspection, home improvements on both properties, moving services, and storing options are only a couple of things you should be ready for before setting a budget limit for a future home.

To sell your Canadian home for a good price, you will need to make some improvements and raise its value. However, the cost of the renovation project will depend on the current state of your property. The same goes for moving expenses, especially if you’re relocating a long distance. So talk to your movers and ask them all the questions you have. From packing services to storage options and the transfer of your valuable possessions to a new location, you will need answers to these questions before the costs surprise you.

Selling or buying a home first?

When you’re selling a home before buying a new one, you can be sure of your finances. Moreover, you will know how much money you can invest in the purchase and additional costs. However, there are a few downsides to this decision. Selling a home first will temporarily leave you homeless and double up your moving costs. Still, you can avoid these problems by organizing a temporary residence or asking your friends and family to help.

On the other hand, buying a home before selling the old one will help you avoid additional moving and housing costs. However, the finances might give you a headache since you don’t know how long it will take to sell the property. In addition, you will temporarily be the owner of two homes. That doubles the cost of utilities, maintenance, fixes, and other investments.

Mortgage and loan options

If you’re getting a bigger home in a better location, you might need additional funding to match the financial demands. That means dealing with mortgage lenders and loans. Knowing how hard it can be to get the mortgage, you will want to be approved in advance. Some housing markets in Canada require a stellar credit track. Thus, exploring the options on time will mean a great deal. Still, if the mortgage lenders fail you, you can always try with a bridge loan. You will borrow the amount you need and return the debt with interest after you sell the old home. Other, more recommendable option is a contingency contract. If the seller is in no rush, they might agree to wait until your old house sells.

Conclusion
To buy and sell a home at the same time is no piece of cake because you will need to consider many factors. The right timing, a good estimate, knowing how to navigate the process, and your financial limits are just a few most important ones. Whether you decide to hire an expert or not, it is crucial not to rush with making decisions. When selling or buying a home, some of the most common mistakes people make are missing out on your dream home due to wrong steps they have taken, overpaying, or underselling.

How to Buy and Sell A Home at The Same Time? by Sally Norton

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