Should You Sell First or Buy First in a Hot Real Estate Market?

Navigating the real estate market can be challenging, especially when it’s as hot as Calgary’s current market. One of the most common dilemmas faced by homeowners is deciding whether to sell their current home first or buy a new one. Both options have their pros and cons, and the best choice depends on your unique situation and goals. Let's explore both scenarios to help you make an informed decision.

Selling First: The Benefits and Considerations

Benefits:

1. Financial Clarity:
   Selling your home first provides a clear picture of your financial standing. You'll know exactly how much you can allocate towards your next purchase, avoiding the uncertainty of contingent financing.

2. No Double Mortgage:
   Selling first eliminates the need to carry two mortgages simultaneously, reducing financial strain.

3. Leverage:
   With the proceeds from your sale in hand, you have stronger negotiating power when making an offer on your next home.

Considerations:

• Temporary Housing:
  You may need temporary housing if you can't find your next home immediately, which could involve additional moving costs.

• Market Challenges:
  In a hot market, finding suitable temporary accommodation can be a challenge, potentially leading to higher costs and inconvenience.

Buying First: The Benefits and Considerations

Benefits:

1. Stress Reduction:
   Securing your next home before selling can significantly reduce the stress of finding a place to live within a tight timeframe.

2. Market Timing:
   By purchasing first, you can take advantage of current market conditions and potentially avoid higher prices later.

3. Convenience:
   Moving directly from your old home to your new one without the need for temporary housing can make the transition smoother for your family.

Considerations:

• Bridge Financing:
  You may need bridge financing to cover the period between buying your new home and selling your current one.

• Risk of Double Properties:
  There’s a risk of being stuck with two properties if the sale of your existing home takes longer than expected.

Making the Right Choice:

Ultimately, the decision comes down to your personal circumstances and risk tolerance. If financial stability and clear budgeting are your priorities, selling first might be the best route. On the other hand, if minimizing disruption for your family and ensuring you find the perfect home is more important, buying first could be the way to go.

Tips for a Smooth Transition:

1. Consult with a Real Estate Professional:
   Working with a seasoned real estate professional can provide valuable insights and guidance tailored to your specific situation.

2. Prepare Your Home for Sale:
   If you decide to sell first, ensure your home is market-ready to attract potential buyers quickly.

3. Secure Financing Options:
   Discuss bridge financing options with your lender to prepare for buying first if needed.

4. Stay Informed:
   Keep an eye on the market trends and stay informed about the latest developments in the Calgary real estate market.

As a seasoned real estate professional with over 11 years of experience in the Calgary market, I’m here to guide you through this decision. Whether you choose to sell first or buy first, I can help you navigate the process smoothly and strategically.

If you have any questions or need further assistance, feel free to reach out to me. Together, we can create a plan that aligns with your goals and ensures a successful and stress-free transition.

If you have any additional insights or experiences with selling or buying first, please share them in the comments below! Your feedback can help others in the community make informed decisions.

Best regards,
Michael Newton
Managing Broker, eXp Realty
(403) 512-9825
michael@michaelnewton.ca
michaelnewton.ca