In today’s real estate market, descriptions such as housing crisis, lack of inventory, affordability, and high interest rates can make Buyers hesitate. However, if you are in the real estate market and find yourself in a situation where you have found your dream home but have not yet sold your current house, don’t despair; the current market may be to your advantage.
In a Seller’s market, there are more Buyers than there is inventory. As a Seller, you have a better chance of selling your home with a quicker turnaround time and at a higher price than in a market that is overloaded with inventory and with fewer buyers.
Should I Wait To Sell?
In a Seller’s market, the danger of selling before purchasing is that you may end up making compromises to buy a property you are not comfortable with. You may have limited choices, none of which fit your style or needs. You may have to overpay or end up with no home at all. The problem isn’t being able to sell your home, it is finding a new home. If you find the home you want that checks all the boxes and you are serious about purchasing, you may want to put an offer on the home before you miss out.
The other side of the issue is that markets cannot be timed. There is always the possibility that the market “flips” and goes from a lack of inventory and a Seller’s market to a balanced or Buyer’s market. Inventory could suddenly flood the market and you could be left sitting on two properties. Ultimately, this is a decision to take up with your Realtor and discuss the options.
Thinking Of Renovating, Painting, Deep Cleaning Your New home
Are you considering renovating or deep cleaning your new home before physically moving in? If you purchase before selling you may be in a position where you can undertake those items without having to move out of your current home. In some cases, bridge financing may be the tool you need to allow you to renovate, paint or deep clean your new home before moving in.
Bridge financing is typically a short-term loan borrowed from the equity in your existing home. This type of financing allows you to borrow the down payment for your new home without having to first close on your sale. The hitch with this type of loan is that most major financial institutions will require that you have in place a firm purchase contract for the home you are selling.
Ultimately there is no right or wrong answer. You need to be aware of the risks associated with both situations and make your decision based on your own appetite for risk. If you are concerned you can certainly contact your real estate lawyer to discuss the ins and outs in an objective way.
For more information regarding real estate law, we are Calgary’s leading legal real estate team to help you. Contact us today, 403 245 – 3500, or email us at [email protected].
