Selling your home before or after buying a new property?

When the time comes to change property, one question often comes up: is it better to sell your current home before buying a new one, or vice versa? The answer varies enormously according to each person's situation, especially when it comes to financial capacity.

Sell first: financial security

Selling your home before buying another gives you a clear idea of how much you'll be able to invest in your next property. This approach eliminates the stress of juggling two mortgages if selling your current home takes longer than expected.

But this option also comes with its share of challenges. If you can't find a new home quickly, you'll have to consider a temporary solution, such as renting, which can be costly and less convenient.

Buy first: an option for those who can afford it

Buying before selling can offer more flexibility, especially if you've found the perfect home and don't want to pass it up. However, you need to be prepared to take on two mortgages for a while, which can range from a few weeks to several months.

Making a conditional offer on the sale of your home is a possibility. That said, sellers are often less inclined to accept this type of offer, especially if their property is popular or newly marketed.

On the other hand, in cases where the house has been on the market for a long time, or if your offer is particularly advantageous, the seller may be open to this option. Another strategy is to negotiate a later occupancy date, say 120 days after acceptance of the offer. This gives you time to sell your current home before you have to close the deal. But even with this approach, it's crucial to be financially comfortable to avoid unpleasant surprises.

Assess your situation

Whatever approach you choose, it's essential to assess your financial situation before you take the plunge. Make sure you have a pre-approved mortgage and the necessary downpayment for a second property. It's also a good idea to set aside a financial cushion to cover unforeseen circumstances.

In conclusion

There's no universal answer to this question. It all depends on your priorities and your financial situation. If your budget allows and you're prepared to take a calculated risk, buying before selling may be an attractive option. Otherwise, selling first is a more prudent decision that reduces financial stress.