BUY A HOME?
Torn between buying a new property and holding onto your current one? You’re not alone, especially in Nova Scotia’s unpredictable real estate landscape. If you’ve ever asked yourself whether you should list your current home first or take the plunge into a new purchase, you’re facing a common conundrum.
The good news? I’ve got your back with practical solutions. Don’t fret; your trusty neighborhood real estate agent is here to unravel the mystery for you! 😊 Let’s untangle your choices and give you a Nova Scotia-inspired strategy that fits like a glove.
Your financial situation is a major player in this decision. If you have the financial resources, you might be tempted to buy a new home before selling your current one. On the flip side, some folks prefer to sell their existing property first, relying on the sale proceeds to finance their new purchase.
In Nova Scotia, where real estate markets can vary, having a solid grasp of your financial standing is crucial. According to recent statistics, Nova Scotia’s real estate market has shown steady growth over the past year, with a median home price increase of approximately 10%. This means that if you’re considering buying before selling, you might be entering a market where property values are on the rise. Conversely, if you’re selling first, you could potentially benefit from the current market conditions to maximize your home’s selling price.
The first step would be to talk with your financial advisor or mortgage person as they will be able to give you the solid dollar amount you have to work with for your next home purchase. They can also start the process to refinance your current home, or advise you about porting your current mortgage to another property or withdrawing equity of your current home to use as down payment on a new property.
At the same time you should be contacting a real estate professional to do a market analysis for your property. They will come view your home in order to give you a home evaluation. Mainly looking at the condition of the home, age of mechanical systems, age of decor, layout. They will be noting any repairs or upgrades that would help increase the value. The agent will then take this information and compare your home to ones that have recently sold properties from similar areas, and often doing a plus minus calculation of the value of features of each in order to come to a probable sale price of your home.
Market conditions: In this seller’s market, where homes are selling quickly and inventory is extremely low, it may be more challenging to find a suitable new home. In this case, it may be better to sell the current home first and then look for a new one.
Timing: If the person needs to move quickly, then listing their home first may be their only option. In this case, if it’s a fast sell, it will leave the seller with the financial freedom to start the hunt for a new home. However, if it doesn’t sell in the set timeline, it could leave the seller in a predicament where they may have to find temporary housing (rent), or purchase their new house before the sale of their old one. Leaving the seller with two mortgage payments.
Emotional attachment: If the person is emotionally attached to their current home, then it may be hard to leave. In this case, looking for your new home first, may be you best option, as the excitement of moving may make the transition from you current home to your new one, a lot easier.
Selling Your Current Property First
- Knowing how much money you will have available to purchase your next property.
- Avoids the risk of having two mortgages at the same time, if you sell your current before you buy.
- Being in a stronger negotiation position, as you’re not depending on the sale of your current home, to purchase your new one.
- The possibility of having to find temporary housing if your property closes before you find a suitable home.
- The risk of potentially not finding the perfect home before you sell your current one.
- The cost of two mortgages if you’re unable to sell your home before moving into your new one.
Buying Your New Property First
- The convenience of not having to move twice, or find an in-between home.
- The ability to take the time to look for your dream property.
- The possibility of negotiating a better deal as a cash buyer, if you’re in said position.
- The risk of carrying two mortgages if your current home does not sell as quickly as anticipated.
- The possibility of being in a weaker negotiation position if you’re dependant on your current homes sale, to complete the purchase of your new one.
- The added stress of having to sell your current home quickly, if you’re unable to afford two mortgages for an extended period of time.
Ultimately, the decision of whether to buy or sell first comes down to a few different factors. Some personal, and some to do with time and place. Thats why its highly recommended to contact your local realtor or banker to weigh out the pros and cons of each situation, and which option may be right for you.