Buy or Sell First?
Could you imagine selling your home and having nowhere to go? Or buying a home and not being able to close because you can’t sell your existing one?
Sellers Market
When it’s a seller’s market (not a lot of properties on the market and prices are higher), your home really should sell fairly easily.
The hard part is finding the right home. Lots of buyers, multiple offers, houses can go pretty fast and sometimes more than asking price.
It’s probably better for some people in this market to buy first knowing that you shouldn’t have a problem selling your existing home.
Remember that once you buy a home you now have a certain amount of time to sell your existing one.
1.      You can sell first in this type of market and not be under pressure to sell fast. Should you sell first, I would recommend adding a term in the Offer to Purchase and Sale Agreement that gives you the option to extend the closing date. This would allow you more time to buy and remove some of the pressure.
2.     If you sell first, you can also add a clause in the agreement making the deal conditional on you buying a house within a reasonable amount of time. Although, should I see a clause like this when assisting my buying clients, I would recommend for them to pass because the seller can cancel the agreement at a later date. Remember, conditions have to be mutually agreed upon.

Buyers Market
When it’s a buyer’s market (lots of homes to purchase and not enough buyers, the prices are usually lower), it can take some time to sell your home and you may not have the most favourable terms or conditions.
In this type of market I would recommend selling your home first knowing that finding a new home should be fairly easy.
1.      If you buy first in this market, I would recommend a longer closing date or a clause that allows you to extend the closing date for a specified period of time.
2.      You can also make the agreement conditional on you selling your home.  In a buyer’s market a clause like this does not hurt and I have suggested it when the conditions call for it.
Balanced Market
When the market is balanced (the amount of homes available is equal to the amount of buyers, prices have usually levelled off).
Take your time. Weather you buy first or sell first is a personal option based on your comfort level. 

Considering a Short Sale
Have you been considering a short sale because you believe your home is upside down with your mortgage? Click the image below to find out how many years you have before your home becomes an asset again.