If you’re considering selling your home in the North York area, you may have thought to yourself “Should I Buy or sell my home first?”
Let’s clear that up.
When getting ready to make the move there are so many questions regarding the interplay between buying and selling.
“If I sell first, how long will I have to buy?”
“ If my new home doesn’t close before my current home sells, where will I live?”
“If I buy first how will I afford the new home?”
Let’s go over the options!
If you sell first...
You can request a longer closing date from your buyer. However, you’re going to want to purchase a home and arrange the closing date before you have to move out of your current home so you can move smoothly from one place to another.
In some cases, depending on your income, you may be able to hold both properties at the same time. But in the case you’re unable to, your lender may agree to provide you with what’s called a bridge loan.
Essentially this loan bridges the time in between your purchase and sale, allowing you to purchase first and then repay the loan once your home sells. You’ll need to provide proof of a firm agreement of purchase and sale on both properties in order to qualify.
If you decide to buy first...
You’ll need to get your home on the market quickly. If you’re unable to hold both properties at the same time or qualify for a bridge loan you’ll want to close your sale at least a few days before your purchase to be safe. With a great marketing and negotiation strategy you can time the sale to coincide with the purchase.
Timing the Sale
In the case that you’re unable to time the sale and purchase of your home perfectly, other options like staying with family or a short term airbnb are interim solutions while you wait for the keys to your new home.