A recent RE/MAX Canada survey found that 16% of Canadians desire to buy a home or sell their current one in order to "move up." Many first-time homeowners have found it difficult to enter the market due to the high cost of real estate, but move-up buyers are in a wonderful position right now thanks to well-timed purchases and significant equity increases, making the search for a "forever home" feel less difficult.
You were probably young, cash-strapped, and ready (or at the absolute least, warned) to make some concessions when you bought your first home. They said, "You can't have it all." "So, price, location, or home style, where will you take the hit?" On the other hand, move-up purchasers often have some equity and savings to deal with, which makes their next move less of a compromise and more of a deliberate choice.
However, move-up purchasers have unique difficulties that necessitate careful planning of their approaches. Here are three choices for the savvy, well-prepared move-up buyer!
Sell First, Buy Later
The move-up buyer who wants to avoid having to pay two mortgages at once should use this approach. If you sell your existing house before the deadline, you can avoid the possibility of having to carry two mortgages. Additionally, it lessens the likelihood that you will need to lower your asking price if the sale doesn't proceed as rapidly as you would prefer. This is a smart choice for move-up buyers who rely on the sale of their current home to pay for their new (and probably more expensive) one. You can acquire your future house with complete confidence if you sell your current property first. To learn how to choose the appropriate asking price, go here.
Buy First, Then Sell
The "buy first" technique may be the best course of action if properties in your preferred neighbourhood are selling quicker than "For Sale" signs can appear on the front lawn, a situation known as a seller's market. You won't feel pressured into settling for a subpar house or forced to look for alternate temporary housing while you shop the market if you purchase your new home before selling your previous one. This move-up buyer continues to reside in their current house, giving them the freedom to browse around and keep exploring until they locate the ideal location without any additional hassle or pressure. A bridge mortgage is often necessary for this move-up buyer. To learn more about the various mortgage kinds, click here.
Time and Align Your Purchase and Sale
The move-up strategy is ultimately the best one, but getting there is another matter. It can be challenging to coordinate your buy and sell closing dates. You, the person you're purchasing from, and the person you're selling to are the three dancers in this tango. Additionally, you'll need to move in and exit on the same day. Time is your best friend and flexibility is your lifesaver in this situation. This demonstrates that you have thought things through and have begun the organising and decluttering process well in advance. You have also investigated neighbourhoods and acquired pre-approval for a mortgage.
Your move-up plan will be influenced by a variety of elements, including your financial circumstances, the state of the housing market, and your degree of comfort. To guarantee a seamless transaction on both sides of the offer table, prepare ahead of time and seek the appropriate counsel from a qualified, experienced RE/MAX agent.
