You’ve Outgrown Your Home, Do You Buy or Sell First? #tips
Do You Buy or Sell First?
There comes a time in your life when you outgrow your home. Your family has grown and you simply need more space to have a functional household. When this happens, homeowners tend to linger on the question, “Do I buy or sell first?”
If you are in this predicament, you are not alone. 42% of Ontarians are concerned about whether to buy their new home before selling their current home.
The first step to help you find the best answer is to get the right help. You need to find the right real estate professional for your needs. A good place to start is by asking friends and family for referrals and meet with at least three candidates. I know that is the first I turn to for recommendations.
My next step is to head online for resources. Since I live in Ontario, I found a website that can check the status of registered real estate professionals and find out what questions they should ask before deciding whom to hire. RECO regulates real estate pros in the province and protects the public interest through a fair, safe and informed marketplace. To me, that sounds like winning already.
In a recent survey sponsored by RECO, 800 Ontarians were surveyed and indicated they have bought or sold in the past two years or are considering buying or selling real estate within the next two years.
I think anytime we make a large investment in buying or selling a home, we have many reservations. 70% of young people are worried they simply just don’t know enough about buying or selling a home. While 84% worry about being able to afford it. 76% claimed that they worry about the affording the possible associated costs that come with owning a home like home repairs or renovations. 60% were worried if they could keep up with mortgage payments and 68% were concerned they’d be outbid in the process.
While I am slightly under the age margin (I’m 32) but, we are in our second home and we have considered getting into another home in future if we need to. Ontarians aged 35-54, who have already bought and sold their first homes have fewer concerns than their younger counterparts. Their biggest concerns are very different from the other groups.
For example, 57% worry about how long their home will sit on the market when they do decide to sell. 52% of them are less concerned that the real estate bubble will burst than younger people.
There really isn’t a right or wrong answer to this question. But, as with any situation, there are always pros and cons to consider! Having a good contingency plan in place is optimal, you can even learn more by reading this blog post.
TIP: Get in touch with a registered real estate pro before starting the buying and selling process.
In the case your closing dates don’t align, it can potentially leave you with two homes or no home, for a period of time. No one wants that!
If you choose to buy first, there are a lot of positives that can make the process much more pleasant. For example, not having a closing date looming on your existing home, you’ll have time to wait until the right home comes up for sale. If you do make an offer on a home and it doesn’t go through, you can always wait until for the next one!
The cons of buying first can result in not selling your house fast enough and ending up with TWO mortgages to pay. It can also affect the chance of securing a mortgage for the new home as well. So, that’s definitely something to think about.
TIP: If you do make an offer, protect yourself by making it conditional on the sale of your current home.
Keep in mind that adding this condition to your offer may make it less attractive to the seller. But, it gives you the option to back out if things don’t end up working out on all levels.
The biggest advantage of selling first besides not ending up with two mortgages is the knowledge of knowing how much the sale brought in. Helping you see how much of a budget you have to work with for your new home.
The only issue is that you will have a closing date looming over you and if you don’t have a plan you may end up rushing the buying process and settling for a home that isn’t for you or paying more than you wanted to because you feel the ticking of the clock.
TIP: Have a back-up plan, consider a short-term rental or moving in temporarily with friends/family.
By doing so, it can help you to purchase the home that is ideal for you. Without making a decision under pressure or in a rush and could end up resulting in a buyer’s remorse.
If the purchase of your new home closes first, you might need something called “bridge financing” to cover the down payment and other closing costs until the sale of your current home closes.
Ready to WIN?
Whether you are buying or selling a home, RECO wants to help you out. One lucky Whispered Inspirations reader will WIN a $200 Lowe’s Gift Certificate! This giveaway opens on February 11th, 2016 and ends on February 26th, 2016.
At the end of it all, whether you choose to buy first or sell first, it’s important to remember that a registered real estate professional is knowledgeable about market conditions. They will help you find solutions throughout the entire process. Plus, find a plan that works for you.
Also, remembering to use resources available to you and to find the right registered real estate pro. It can make all the difference! They can answer all of your questions and put your worries to rest. I’m a firm believer that finding the right agent or broker, can be so helpful. Make sure you visit RECO to find the right one for you.
Have you outgrown your home?
Will you buy or sell first?
Let me know, til then–cheers m’deres!
Nancy Polanco is a freelance journalist, lifestyle content creator, and editor of Whispered Inspirations. She is a proud Mom to Gabby and Michaela. Having worked as part of a health care team for almost a decade, Nancy is happy to be back to her passion. She is a contributor to the Huffington Post, TODAY’s Parents, and an Oprah Magazine Brand Ambassador.
I am actually renting so this doesn't affect me personally. But my friend is currently going through a divorce and her & her husband are facing this dilemma right now. She is worried she will be stuck without a place to live once hers is sold. I will pass along these tips to her so she can get educated on it.
Hope it helps!
We had a good experience buying. I worry about making sure we have the best agent representing us.
RECO will put you at ease by helping you find a professional that is registered. Check them out!
you buy then sell!!
We build our own home 19 years ago,now that the kids are moved on we really need to start asking ourselves about selling and getting something smaller
Check out RECO to find a registered pro, it will help!
We are actually talking about getting a small seniors cottage in the next year or so …thanks for the tip
we sold a mobile home and it was easy went through the bank they paid us and it was simple of course that was like 10 years ago
I was nervous when buying my home, because it's such a big investment! I wanted to make sure I got the best price for the best place for me. So I visited a lot of places, which took a lot of time, but that's how I was able to determine what features I needed and which ones were more on a 'dream list'. Our realtor really helped with everything!
It is great finding a great realtor. Makes a difference.
We have been in our first house for 11 years. We often talk about moving to a bigger house but are worried about the whole selling process.
It is scary to think about!
I hate the whole experience and find it too stressful. The packing, the negotiating, the inspection… Not for me. I love it once everything is done but really don't enjoy the process.
Do not blame you!
My husband bough our home before we met and it is perfect. I have no plans on selling or buying but I sure love renos!! 🙂
We sold our house 6 months ago and it was a nightmare. Everything went wrong. In the end it all worked out but honestly it was the worst 6 months of my life.
We have gone through this process 3 times … having the right help is very important as some 'professionals' are anything but.
We have thought about selling but it scares me to much! lol
We sold our last home & moved into a apartment. Kids went to college. We didn't like apartment living so we brought an 110 year old home & bring it back to where it should be. It has all the high baseboards and other stuff! Glad we did the buy & sell!
We have an older home to sell, and it's hard to know if we should sell it as it or fix it up first.
Perfect time to ask a realtor. Check RECO first!
We aren't in the selling stage yet but we are doing some renovations to make our home fit us better
we have purchased a new 2nd home to have as a rental property, we have discussed selling it tho, scary as it's a great investment, and with our current home, we need extra room for my mom to move in and to buy a bigger house we would have to move out of our area, which we love and our neighbors, so we are going to be building on.
Wow, that is great!
I worry about those hidden and unexpected needs of repairs.
We bought a house a little over 1 year and it went smoother then we thought
Always great when that happens!
I live in the Vancouver area – so selling isn't an option because you'll never get back in the market again!
we are buying soon worried about scams by brokers etc
Make sure they are registered with RECO!
The thought of all the things that need to be done before selling is overwhealming
It can be!
A lot of change has happened in my life and I have to make some decisions. When it comes to buying/selling, change scares me
we actually recently went through selling our first home. it was kind of annoying going back and forth with agents who then go to the clients etc. thankfully it didn't take long to sell. one thing that scared me while trying to sell was not getting the amount for our house to be able to get our next house
Glad it worked out!
I worry about never being able to upgrade, the market is Crazy here!
I worry about the Realtor not being able to sell our house.
I worry about paying way too much and finding out later I made a poor decision. 🙁
I'm thinking about selling but I worry about being able to get the house looking good! It feels like a really stressful process.
debating on selling our rental home
buying a house as an older person, am I just wasting my $
(Sabina edwards) I've only had one house, the one we are currently in. Can't imagine any reason soon to sell it. When we first got it, we were a family of 4, my sons GF ended up moving in with us for two years (I tell ya it was tight) and now we are back down to just two of us. We both still work so there would be no real reason to sell. I don't make enough of an hourly wage to drive to my work place (less then $19/hr) but hubby does drive to the city to work. We've put a lot of work into our house, new roof, new windows, we did the siding ourselves as well. Had a two car garage put up (Its a wood shop folks, the vehicles have never even been inside there) and we do gardening as well.
So, seems like a great place for you now.
I have yet to buy a house, but I think I've watched enough HGTV shows to know what I'd be getting into.
OMG, me too!
i want to buy but it worries me that i cant afford it and what happens if i lose my job. i also never have bought before and dont know how or if ill get ripped off
Very hard to think about for sure!
I've never bought or sold a home, but I would be afraid of hidden costs. It would be very important to me to 'shop around' for a good retailer, do my own research, and make informed decisions.
I worry about if we picked the right mortgage rate when we buy a home and what we still need to do to the home before we can move in.
I bought my only home over 30 years ago andhave no intention of purchasing another..so have no thoughts about this subject
I've never owned a home. We rent, and have never been in the position to buy so I have no experience with selling or buying.
We had a good experience when we bought our first home (which we still live in), but now after 12 years here I'm kinda wishing I could buy a brand new home. We've been renovating because our house is just over 30years old. I'm not keen on doing a lot of renovations….it's not enjoyable for me personally.
WE did too!
I worry about not getting the right house after we have sold.
We bought our first home last year and I stressed out about the entire process. It's so hard to know if you're making the right decision when you choose a house…and don't even get me started about the actual moving process! I truly hope this is our forever home because I hate the thought of doing it all over again!
Hehe, hope so!
I worry about selling & then not finding anything
My worst fear about buying and selling homes is the transition, do you buy first or sell first. I don't want to get stuck with multiple mortgage payments!
Now you have some tips!
I haven't had any experience buying a home (rented till I got married and moved into my hubby's house), but with the expensive real estate here in Vancouver, I worry about finding a house that is in a good location, and for an affordable price. On top of that, I am worried that our house is not on par with all the other houses in the market and therefore won't sell.
I can imagine the prices in Vancouver!
we might be selling next year, this would come in handy for repairs that we may need to do before we sell
Always great to get advice!
i just get worried and stressed out about the whole selling experience
Find a pro at RECO!
we want to buy soon but we are looking at mortgage brokers banks really worried about scams
Make sure to check RECO first!
When we listed our house, our realtor suggested staging our place which we incurred some expense since we have to rent a storage place to put our stuff until the house sold.
That is a great idea!
We've had good experiences with buying and selling. Having the right team of professionals is important.
So very true!
At one time I helped people buy and sell as a real estate agent.
We've bought but not sold. I'd be anxious about timing a buy and sell, and about having to keep our house "showing" ready until it's sold!
We're planning on selling this year, we're worried we won't get a good offer or it'll take a while to sell the house.
I haven't bought a house yet, but I'm saving to buy one in the next few years. Budgeting for it is the hardest part . I've never stuck to a budget so it's hard to get into the habit.
You can do it!
I've always rented, but I'm worried about buying a house that has a lot of hidden repairs.
We worried about that too, that is why we went with a newer home.
buying was easy for us, we have no plans selling our current home
We had an easy time buying too!
as a realtor I really appreciate reco! I have bought and sold many houses and I love helping others to do the same. I don't worry too much personally, but I like to be able to help address the concerns of others
That is great! We could not do it without the help of you pros!
I have only bought one home and was really nerves about if I could all the up keep myself.
I always like to sell first, then buy. This helps the anxiety of wondering if you will get the house you want to buy because you may not sell in time.
I think that is the route I always choose.
The Fort Mac boom has slowed here and housing prices have drooed
I would be afraid I'd buy a "lemon" and the roof would cave in on me!
LOL! Oh noes!
Have only sold one other house & it was a very good expierence
We've never bought or sold, we inherited our home. We've done some reno's though!
That is amazing and renos can definitely impact your selling power if you ever do want to sell.
I have never bought a home but I think I would be nervous about picking the wrong one or not being able to get what I need or want.
I worry about the housing market staying stable, as our home is really our nest egg. If things change in Ottawa, selling it could be pretty scary.
It can be for sure, there is always great resources to help you and pros!
When we did the buy/sell we had bought our house first so the stress of selling, getting an offer and closing was pretty surreal. we manged to do it but it took longer then thought and having an 8 month old while having to keep house show ready was another ordeal
WOW, that is nuts!
I worry about the little things: is the basement going to stay dry, how long are the shingles good for, does the roof leak. Will I like my neighbors.
All valid worries for sure!
I worry about buying a lemon ! Like finding lots of problems after I buy !
That would be scary!
We're hoping to sell and we need to know if we should put more money into it first.
That would be great to know!
We had such a smooth experience when we bought our first home. A good realtor makes it easy! We haven't thought about selling, but it would scare me a bit
i would be worried about finding another house i really like and not selling current.
I would be too!
I worry when i set i wont get back what i put into it
I always worry about not submitting or getting the right documents for the financing or closing on time.
I know our realtor helped us do all of this! 🙂
with the way the market and economy is right now, i think selling a house might be hard to do right now
Great time to talk to a pro, they would be able to tell you!
I'm so glad we bought our 'forever home' as our first home! Selling & having to buy again would be super stressful!
That is amazing!
we bought our home 15 years ago (and the process went smooth) and at this time really not thinking about selling – but if we were I would wonder about the market
I currently have no worries about buying or selling a house.
it has been awhile but our last experience went smoothly ,no problems
I worry that we'll be able to sell. It's not a good year.
It has not been!
buying is always scary especially with older homes because of all the hidden items you cannot get inspected
I worry we may lost out if we cant find the right buyer because we redone the home to be wheelchair accessible in and out
Definitely something to think about! Sometimes it can be a selling point, especially if you have widened the door entries!
I'd be most concerned about market value and truly getting what i deserve.
That is very important!
When selling, I dislike always having to ensure the house is "showable"
Sometimes staging a home gets it sold!
I bought my current residence over 8 years ago and sold my previous home privately. It came right down to crunch time but I sold in time! I will be mortgage free soon so I would sell this home and rent if I didn't find the perfect home when the kids leave. Good plan!
Wow, that is great!
I worry about finding a problem I didn't know existed!
i worry about scams
There are lots out there!
I didnt have any experience when I bought my home 6 yrs ago it was scary and I do recommend getting the place inspected
For sure, it was one of our conditions!
I'm afraid of getting a bad mortgage deal!
It is scary and a big investment. You def need someone to help you out!
I worry about not getting a good price when selling. A good agent with experience helps.
They can make all the difference!
I worry about the upkeep of a new home. (my hubby is not handy)
only bought one house before, expect I'll upgrade and biggest concern is increase in property taxes.
That is a valid concern. I consulted my realtor and I was able to get a great yearly property tax!
Selling our house was so stressful, we were living elsewhere and just wanted it sold. Finally after a year we had an offer and we were done with the whole situation.
That is tough!
I have a large home filled with a lot of stuff and it's getting to be too much for me to take care of. I'm thinking of selling but what do I do with all the stuff?
That would be a great question for a pro!
I scared we will lose money when we sell
I worry that the renos we have done to update, are enough to get the amount we need to sell
Something to look into for sure.
losing money scares Me 🙁
I am with you!
I worry that prospective buyers don't have enough imagination.
I am hoping to buy soon , I am worried that I will over look small things and end up with big problems
When buying, always worried what might potentially go wrong with the house once we own it.
That is a legit worry, for sure.
I'm always concerned about buying in a neighborhood that isn't going to go downhill.
I worry about that too!
My biggest worry is that it won't sell. That we'll have to take a loss.
It can be a tough market. In our area it is a sellers market right now. A pro can help you choose the right time.
I worry about the costs.
It is a big investment.
I live in an apartment and have no plans to buy another house, so I have no worries at the present.
That is a good thing!
I worry about not getting a good price when selling.
Something we all worry about for sure.
Only bought one house so far a long time ago.
finding the right home and area scares me
I worry about losing money when we sell
Biggest worry is not finding what you want in your price range
worry about being able to pay off the mortgage
I worry that I won't get my asking price.
I worry about losing monies when i sell
I worry about what if I bought a house and found that there's a lot of things have to be repaired later
I worry about being able to sell at all.
I worry about financing until everything is done
We kept up with renovations in case we decide to sell.
I am still living in the condo that my parents bought when I went to University, other than we own it now. Really don't have experience with buying or selling. We are hoping to move one day, I just hope we can afford what we want.
With buying would be worried about over paying
I worry that I'll never be able to purchase another house.
I worry about the quality of an inspection as my brother had one and still had tonnes of issues with his home!
I was afraid of not finding a house within our budget that was worth the price. most houses are way over priced
Not too much experience in the buying/selling market. We are thinking of maybe doing a move in 5 years so hopefully it will work out for us.
I worry that we won't sell at all. Slow market!
I would worry about my house not selling for the price I want.
The thought of selling scares me to death,so worried we wont get all we put in!
Never bought or sold before, so not idea.
I was nervous about the hidden repairs needed when I bought my first house. And within a year I had to fix the plumbing!
I haven't bought – but I've looked into it… it's daunting!
I love my home and could not do not want to pack up and move.
I'd worry about getting a fair price.
My biggest worry about buying another place is whether or not we will be able to afford it since the prices seems to be getting so high. We do own right now but it is just a 2 bedroom condo in a highrise.
Decluttering the old house would be my problem. LOL
We have bought and sold our house in the past and remember being stressed out hoping our house would sell before we closed on our new house.
When buying I always worry that the inspection is going to miss something that turns into an expensive mess.
we rent right now. however we do plan on buying and selling homes later on. our friends currently flipped a few houses and got us thinking about it
I worry about not getting my asking price.
I'm terrified to buy now – houses have gotten so expensive in Vancouver it's impossible to afford!!!
I worry about not being able to sell.
I'm so happy that we've never outgrown our house, that the house is actually a perfect size for us!!
I would worry about getting into a bidding war
I sometimes worry when we sell we wont get back what we put into it
i worry about not being able to sell my house with the way the market is right now
I thought about selling but it scares me
I had an excellent realtor and my buying experience was smooth sailing! I will say I did appreciate the small renos the previous owner put in
Selling our condo and buying a new place is a little scary but one day we will take the plunge.
We bought our first house 6 months ago – everything was really good until our final walk through. There were so many issues that had happened (rough leak, toilet broken and water damage into the living room below, pool leak, and ESA was not completed) so we had money held back. No biggie, right? Wrong! The sellers decided they weren't going to release any of the money to fix the problems afterall! And then after going back and forth for weeks, they threatened to sue us because we had held up some of their money at the lawyer's! The nerve! It all ended up being okay in the end. We didn't get enough to fix all the issues, but at least we got some and now we don't ever have to deal with them again! Not the best experience for your first house, but we've learned that the most bizarre things can happen. Even our lawyer and real estate agent couldn't believe how unreasonable they were! They said our situation was not a common one lol
WOW, that is so rough!
I don't know the first thing about mortgages!
I worry about getting my asking price.
I haven't bought my own home yet, still renting – but my biggest worry of that transition is 'can I afford this?"
We had no problems when we bought our home.
The cost of buying a new house is what really scares me right now, the prices are insane!
Living in a small town its not always easy to sell
I worry that houses are so expensive that I'll never be able to buy another one.
If we can't sell.
Getting into a bidding war would be a big fear
I worry about the costs of buying and the chance of poorly done quick fixes or renovations done by the previous owners.
I would want to learn more about first home buyers benefits to see if it's even a possibility for me!
I worry about not getting a good price.
I really worry about not being able to sell.
Not that experience in this but I am afraid of what the prices will be like when we do sell our highrise condo & move (looking at maybe 5 years from now).
Taxes! And all the unexpected expenses along the way.
Living in a small town,house sales are real slow
I worry about what will show up after we've bought the house
i worry about whether it will sell.
I worry that I will sell at the wrong time and take a cut :/
I worry about not being able to get back into the game and buy another house.
Since we just bought our first home and are doing renovations, I'm worried about renovating ourselves out of the neighbourhood. I want a beautiful home, but I want a good return on any investments we put in the house!
We bought our home through an agent & it was a great experience. I worry most about having someone with good credentials whom I can trust.
I worry about not getting a good deal.
I think not being able to keep up with a mortgage would worry me the most!
I worry about anything that may be missed with buying a new house – like water damage
Taxes! And all the hidden/unexpected expenses along the way.
A bidding war for a house you want would be scary
I just worry about finding a place we like that is within our price range when we do get around to moving.
Living in a small town it sometimes takes years to sell a home
We had a great experience buying. We had to do a lot of research to see what fit with us best.
Honestly I worry about every step of the process
I'm in the middle of a divorce but I hope to buy out my husbands share of our home. I'm not at a point in my life to start all over. My place needs fixing up but it's still home.
I just saw a house was sold for 4.2 million in Vancouver… no … not a mansion… just a regular house… What???!!!!!
I worry about the right timing to sell.
I worry about having to do renos beyond my knowledge of what will have to be done!
Getting ready to sell would be a big chore
I'm still scared I won't be able to sell.
Taxes! And all the hidden/unexpected expenses along the way
If i lived in a bigger place i would be more comfortable with selling but living in a town with less than 2500,it can take years to sell a home !
money is always the big concern, will you get what you need , will you have to do bridge financing & all the other bills
Just hope that we can afford to move down the road when we are ready. The prices are a bit scary these days.
Both buying and selling went very smoothly.
Only ever bought one home in my life….and I lost it in the divorce!
It is high risk to sell before you buy in a forward moving market. You could sell and not find a place you want then be priced out of the market. Then what…welcome to being a renter. If you need to do a contingent sale then doing all the steps right are very important. An experienced person to guide you through the process is critical.