When it comes to transacting real estate, there are cases where the circumstance necessitates not just one transaction, but two transactions. Save for purchasing your first home, selling your last home, or buying an investment or leisure property, it is likely that any purchase will be paired with a coinciding sale. With two transactions comes double the considerations, and ensuring these two transactions work in conjunction is critical to achieving success. Of these considerations, the one that we hear the most questions about is timing.
Specifically, how soon can I sell my house after purchase, and how do you make this timing work?
Your Risk Tolerance
To first answer this question and create a plan, it is critical to understand ones own unique needs in context. Depending on one’s risk tolerance, one can elect to sell first and purchase after or can choose to buy first and then sell after. The choice here comes down to three major factors. Financial flexibility, day-to-day living impact, and tolerance for freedom of choice.
Buying a Home Before Selling Yours
To purchase first, you gain the certainty of knowing where you are going to go and being able to wait to pick the house that’s exactly what you want. On the flipside, you don’t know what the proceeds of your home sale are going to be and may be put in a position where you need to sell to satisfy the financial needs of your purchase, quicker and possibly for a lower price than desired. You also likely will need to expedite the preparation for your sale immediately following your purchase, contingent on the amount of work done ahead of time. Further, living in a staged house that and presented for sale can be stressful at the best of times, and combining that with a coming move might be too much for some.
Buying before selling usually means you need to sell your home fast. There are a few signs to look for that could indicate your home will sell fast.
Selling Your Home Before Buying a New One
On the other hand, by selling first you have a clear understanding of your financial situation is and budget. You also can go through the selling process on your own timeline and focus entirely on the sale process. You have the privilege of waiting for the right buyer and terms for your sale. Conversely, following that sale you will find yourself in a time crunch to purchase and find a new place to live, and are at the mercy of the inventory available when that time comes. Without a contingency plan in place to live somewhere should the closing of your purchase not line up with your sale you may be pressured to purchase something that isn’t exactly what you’re looking for in order to ensure having a place to live.
Get more answers to your home-selling questions with these posts next:
- What Not to Fix When Selling a House
- How Many Showings Does it Take to Sell a House?
- What is the Worst Time to Sell a House?
Factors to Consider
This choice will be influenced by the market at the time of transaction. When it is a seller’s market, people frequently will elect to purchase first knowing they ensure they are able to find the right place in a competitive market, with the confidence of knowing there will be many buyers for their property.
When it is a buyer’s market, the choice to sell first to give the peace of mind of having a completed sale and know that it will be less competitive and there will be more optionality on the side of your purchase.
In best practices, it’s pragmatic to get your house on the market as quickly as possible following a purchase.
Consider the average days on market and closing date in your area and work from there. Let’s say the average days on market is 15 days, and the average closing date is 60 days. That would necessitate two and a half months of runway on average to complete a sale, and that doesn’t consider the time it takes to stage, repair, paint, clean and photograph your property.
It’s plain to see that the timelines can get tight very quickly. When making a purchase first, securing as long a closing as possible (fitting within market norms and serving your own practical needs) is pragmatic.
Read more about the timing around transactions with these posts next:
- How Long Does Probate Take in Ontario?
- Closing Date vs. Possession Date: What’s the Difference?
- What is a Bridge Loan and When Will I Need One?
Preparation is Key
In addition to that, if you know your plan is to buy first and sell later, it makes sense to do a lot of the legwork and planning for your listing ahead of time as possible. An experienced agent will help you identify the repairs and work that is necessary and can have a staging walkthrough done ahead of time to create a plan. Doing all the work possible ahead of time will shorten the runtime to listing once it is time to act and can ensure the requisite tradespeople and partners of the agent are ready to act quickly and efficiently when the time is right.
How a Real Estate Agent Can Help
Lining up the timing of a sale and purchase is a delicate and critical component of the real estate process. Making the right choices and doing the correct work can maximize the success of your sale and purchase, and failing to prepare and making poor choices can cost someone time, money, and create tremendous stress.
Thankfully, an experienced agent can help simplify these decisions and discuss the options to create the ideal plan for you and then can execute against this plan to give you peace of mind and confidence. There’s no right or wrong way to go about buying and then selling but understanding the market conditions and your specific needs and doing the right work to prepare is crucial.
Ultimately, it’s best to be able to list your house as soon as possible following a purchase but rushing to list and not doing so properly can cost you money and create a situation where it takes longer to sell.
Working with a capable and experienced agent and creating an executing a plan is the easiest way to maximize success and minimize stress. If you are thinking about selling and buying and want to talk about your options and create a plan, please feel free to reach out at any time.
We love working on these types of transactions and helping individuals achieve their real estate goals with success, and we are always happy to hear from you and discuss! Call us at 416.642.2660, email us at admin@torontorealtygroup.com, or fill out the form on this page today!
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It all starts with a conversation. Whether buying or selling, TRG can help you achieve your real estate goals. Get in touch with our team today to start the process.
