When you go to buy a new home in Simcoe County, one of the very first questions you will have to ask yourself is “Shall I sell my current home prior to purchasing my new property?” The answer to this question is not always as straightforward as you might think – and it really does depend on a whole host of factors, not least the property market in which you are investing, your financial position and your personal circumstances. So, here is what you need to consider, with useful advice for our clients in the majestic Georgian Bay area.

Understanding the Simcoe County Market

Seasonal dynamics in the real estate market add another layer of complexity. These are particularly evident in Simcoe County, specifically the more southerly areas that make up the Blue Mountains – Collingwood, Wasaga Beach and environs. A large sizeable percentage of buyers looking to prefer to do so when the gardens are green and the ski hills are open. An almost visceral understand ‘That’s what it’s all about!’ experience is a key motivator.

If you’re in a seller’s real estate market — that is, when demand is high and supply is low — you might be able to be able to very quickly sell your current home at a good price but, if inventory is also low and competition high, finding your next home might prove more difficult. On the other hand, being in a buyer’s market or a balanced market while purchasing might provide more options but require more time to sell your current home.
Pros of Selling Before Buying

1. Financial Clarity: On the other hand, Selling your home first, you can get a real handle on your finances. You know exactly how much money you have to spend on your next property, so you can budget carefully and avoid over-stretching.
2. Stronger Buying Position: You will be in a position to buy with that cash at hand, and that makes you more attractive in an auction-type market, where there’s so much competition across the board, especially in a hot market like the Simcoe County market, where most of the nice properties are selling with multiple offers.
3. No Bridge Financing Needed: Selling avoids the necessity of bridge financing (that is, a loan that covers the period between buying a new house and before the sale of your old one). This saves you interest and reduces your financial stress.

Cons of Selling Before Buying

1. Temporary Housing: If you sell your home before finding a new one, you will probably have to live somewhere else in the meantime, which can be both inconvenient and expensive, especially if you need to find a place to live right away.
2. Market Risks: Of course, there’s always a chance that the market conditions will have changed between selling the first house and buying the second – meaning that when you come to buy a house, it might cost a lot more than when you sold yours.
3. Emotional Stress: Moving twice in quick succession can be a stressful experience. On top of that, not knowing where you’ll be living next makes things harder.

Pros of Buying Before Selling

1. Peace of Mind: For that, if nothing else, you’ll have the advantage of knowing precisely where you’re headed and can plan your move with minimal angst.
2. More Time to Find the Perfect Home: Now I am buying, and this allows me the time to find the right home, not feeling rushed into buying the first one simply because my home is sold.
3. Ability to Renovate: If you’re buying property, and your new home needs to be renovated, you can put off moving in until things are in order and everything is the way you want it.

Cons of Buying Before Selling

1. Financial Strain: Trying to carry two mortgages at once is difficult, especially if you need to put your present home on the market and it won’t sell as quickly as you anticipated. Not only could you have problems qualifying for a new mortgage, your home might not even sell.
2. Rushed Sale: If you are under financial duress and are forced to sell quickly, you might have to settle for a price that is less than your ideal. This can be especially distressing in a slower market.
3. Bridge Financing: After all, if you buy before selling, then you might have to borrow bridge financing, with its additional costs and strain.

Making the Right Decision in Simcoe County

Whether you sell first and then buy or buy first and then sell is a personal choice. There are pros and cons to each scenario and it ultimately comes down to your unique situation. No matter whether you’re looking to sell your home or buy a new one, know that we at The Georgian Realty Team are here to help you make the right choice for your family. Contact us today to learn more about the Simcoe County market and how we can help make your real estate dreams a reality.

Start by having us do a full market analysis on your existing home so you understand its value and how soon you can expect to sell it in this market. At the same time, we can provide you access to the properties that will meet your criteria so you can see what is available.

Regardless of whether you decide to sell first or purchase first, having a plan is key. We’ll be there every step of the way to make sure your next move runs as smoothly as possible.

If you need help taking that next step or if you have any questions about the real estate market, feel free to contact me. I will do everything I can to help you through this real estate process. The Georgian Realty Team is here for you 7 days a week.