TO SELL FIRST OR BUY FIRST: THAT IS THE QUESTION
Every seller is faced with this same predicament: ‘If I buy first, I just might not be able to sell my current place and, if I sell first, I just might not find a suitable property to buy’. So what should you do?
A foolproof way for you to decide is to determine which scenario would be the most difficult for you right now, in today’s market, wherever you are. Would it likely be more difficult for you to sell your home or more difficult for you to find a home to buy that fulfills your needs?
Then do the most difficult option first.
No matter which you do first, plan the timing of both your purchase and sale to occur in the same general marketplace timeframe.
Advantages to Selling First:
- The luxury of time presents no stress to sell for an amount less than you find acceptable.
- You will know exactly how much money is in your pocket to buy.
- You will know exactly when the buyer gets possession of your home or condo (you can time the closing of your purchase to minimize the need for bridge financing).
- You avoid the stress of not being able to sell.
Disadvantages to Selling First:
- Pressure of not yet having found a place to buy and potentially having to make a rushed purchase.
- If you decide on this route, the longer the closing the better.
Advantages to Buying First:
- You have spent all the time necessary to calmly find, negotiate and secure your dream home.
Disadvantages to Buying First:
- You don’t know exactly how much your home will sell for.
- Pressure of having to sell when having already bought.
If you decide on this route, buy with a long closing. Have confidence the budgeting figure you use as a selling price for your home is realistic.
The next important stage is having a strategic marketing plan to ensure that the right buyers are seeing your property.
The Best time to sell
Timing is everything. Or is it?
Historically, the Toronto real estate market has been most active in the Spring and Fall. However, it’s best to let your own personal circumstances as well as your risk tolerance dictate the best time for you to sell.
DOWNSIZING, MOVING CITIES OR A CHANGE IN YOUR FINANCIAL SITUATION?
Whatever your circumstance, I advise my clients to reach out as soon as they are considering selling. This will help me put together a plan that best works with their individual situation, whether it’s in 3 months or 2 years.
A good Realtor will be in touch throughout the duration of your home ownership to answer any questions that come up. They will be a trusted referral source whether you are in need of a painter or a pool cleaner.
Need a recommendation? Please don’t hesitate to reach out to me.
SELL SMART WITH SAGE
Working with Sage Real Estate gives buyers an automatic advantage – not only are you connected with a group of experts, but because clients are our main focus, you will receive exceptional service and advice fitted to your individual needs. And with our customizable marketing strategy and innovative techniques, we’re making the process that much more exciting.
Years of experience and research has shown us that buyers aren’t only interested in what the house looks like and where it’s located, but what is paramount is knowing what lifestyle they’re buying into when they purchase a property. This means we’re sure to include every detail about the neighbourhood, its residents, hot spots, schools, transportation, and anything else that might be of interest when listing your home.
And because we work so closely with our clients, we’re able to determine the exact features that are most attractive to buyers, which enables us to create a marketing campaign with the right messaging targeted toward the right people. It’s that simple.
Making your listing visible outside of Toronto is another key ingredient to Sage’s recipe of success. We’re taking your home international so that you get the greatest amount of exposure in the smartest possible way. And we’re not only keeping up with the times by concentrating our efforts online, we’re one step ahead of them. As one of the first real estate brokers in Canada to work with Artificial Intelligence – Sage is using cutting edge technology to sell your home in the most efficient way possible. With A.I., all requests will be answered instantly so no lead will be left hanging. It engages immediately and builds trust with potential clients because the information they’ve requested (feature sheets, square footage, etc) is available with the push of a button.
All this and more make up the Sage way.
BUDGETING: THE SECRET TO A NO SURPRISES SALE
Selling your property comes with a number of associated costs that you should be prepared for, both before and after your property sells. Considering all of these costs in your budget can help you avoid any surprises.
Depending on the age, style and condition of your home, a few home repairs may be recommended. This is based on market conditions, your agent’s marketing strategy and most importantly, your budget. This can range from fresh paint and new light bulbs, to some larger projects such as replacing flooring or appliances. A good agent will work with your timing and your comfort level to determine the best selection of repairs to improve the overall value of your home.
Staging has become a very common term in the Toronto market. It basically means making changes (either cosmetic or physical) to your space to make it more visually and emotionally appealing to buyers. Often how someone ‘uses’ their home is different than how buyers expect to see a home. Stagers work with clients to improve the look, feel and flow of a space. There are many different levels and degrees of staging. Ultimately it’s up to you to determine how much or how little you feel comfortable doing. Your agent will work with you to find the best solution to you.
Getting a pre-inspection report on your property can give prospective buyers peace of mind about your property and can save them a step in the buying process. This can cost a few hundred dollars but add more potential offers to your plate.
BREAKING YOUR MORTGAGE
If the completion of your sale means you need to discharge your mortgage early, you may incur a penalty. Talk to your Mortgage Broker or Bank to find out the exact terms of the penalty.
You will need a lawyer to act on your behalf in the sale of your home. While fees for selling are less than for buying, this cost will still be around a thousand dollars.
REAL ESTATE BROKERAGE FEES
Most Realtor fees are based on the selling price of the property. HST is charged on top of the commission.
This cost really depends on your personal situation and the extent of your move. It’s best to contact a few moving companies to get a quote.
CAPITAL GAINS TAX
Primary residences in Canada are exempt of this tax, but other properties, including cottages, chalets, or investment properties are not. Make sure to consult your accountant regarding how your sale will be affected.
Real Estate Links
RESIDENTIAL CONSTRUCTION AND REMODELING ESTIMATES
These estimates reflect the average basic costs for supplies and installation of building materials in Canada and the United States. Costs may vary depending on regions, upgrades, complexity and disposal fees. Contact your professional home inspector for directions in the use of this guide. Download The PDF.
LAND-TAX TRANSFER CALCULATOR
All home buyers in Ontario are required to pay a land transfer tax when they purchase a property (condo or home). The amount you have to pay depends on the price of your property as well as if you are a first time home buyer or not. This link offers a quick reference, however the real estate lawyer will provide the final number to you.
A handy directory of my trusted referrals.
BUYER REPRESENTATION AGREEMENT
The Buyer Representation Agreement is an agreement that works in favour of buyers, guaranteeing the very best in real estate service. Enjoy some peace of mind knowing that your best interests will be protected. Download the PDF
This Form is a contract between a Seller and a real estate company that gives the real estate company permission to act on the Seller’s behalf when they offer their home for sale in the open market. A written agreement is necessary in order to secure a commission and to ensure compliance with the REBBA Code of Ethics. Download the PDF