Buy First or Sell First?

The real estate market in Powell River did not take a summer holiday in July!  In fact, sales were up from a busy month in June.  Total sales were at 40 in the residential market compared with 38 in June.  Condo sales were a little higher at 5, pushing the total up slightly. The market continues to move away from the “buyers” market we’ve seen for so long with more competition for what’s available and less time on the market on average.  The total number of listings has been steady, but there has been a lot of buyer activity in the past several months.

The Buy First or Sell First Dilemma…

It’s time for a change – downsizing, upsizing or something newer.  Do you sell first, then buy or vice versa?  Ideally, you’d like to sell the one you own then immediately find the house you love and move in the day after handing over the keys to your sold home. Unfortunately, it doesn’t always work that way.  There is lots to consider.

Your own finances are probably the biggest factor in your decision.  It’s always best to visit your lending institution to get some good advice and options for yourself before committing either way.

If you really need to get the absolute most  money you can for the house you own, it may take longer to sell. In this case, you’re probably best to sell first.  If you sell first, but can’t find the right home to purchase, you may end up moving twice: first into a rental, then into the purchased home.  If you buy first, but have trouble selling, you’re going to own two houses which may be challenging financially.

Some people make an offer on the new home “subject to the sale” of their existing home. This can be a good option if you’re willing to price aggressively and be open to selling for a price a little lower than your ideal.  Sellers may be less enthusiastic about “subject to sale” offers because it ties up their home until you sell, so they’ll want to know that you’re “priced to sell” before accepting the offer.  Generally, they will include a time clause which allows the seller to issue notice of termination of the contract if the subject-to-sale clause is not removed within a specified time period (often 72 hours) if they have another buyer wishing to make an offer.

Some people choose to buy first, then sell by getting interim financing to carry two homes at once.  This option generally requires high income and/or lots of equity in the house you own.  You’ll end up paying all the costs (taxes, hydro, mortgage, etc) for both homes until the original house sells.  It allows you to wait for the right house to buy and flexibility with possession dates but you pay those extra costs while waiting for your house to sell.

If you’re planning a move, call me for help and advice in working through the process!

Timing on Possession…

If you’re buying and selling, you’ll want to time your possession time and date in the new house to match with that of the house you’re leaving.  In a perfect world, you have a leisurely day packing and cleaning the house you’re leaving, then spend the next day moving into your new house.  In a busier market like what we’ve been seeing recently, it’s not unusual for several parties to have to coordinate their moves: you, buyers of your house, sellers of the home you’re moving into and possibly, the owners of the one they’re moving to!  Don’t underestimate your moving time and be sure to book your friends or moving vans well in advance.  You don’t want to be in a tight timeline with no help or not enough time to get your stuff out of your house before the new owners are scheduled to move in.  If you’re doing it yourself, there may be many trips back and forth.  (Month end is often moving time for renters which puts more pressure on the availability of moving trucks and equipment!)

Great Home; Great Neighborhood!

• Ocean view, large fenced yard
• 4+ bedrooms, 3 baths, 2718 sq ft
• Double garage/shop, close to amenities

4866 Kokanee Pl

$325,000

Call me for a showing!