Aug 11, 2021

Should I Sell My Current House Before I Buy?

Did you know that Airbnb hosts in the US make an average of $44,235 per year from their properties? This interesting statistic highlights just one of many creative solutions homeowners are using to navigate the challenging decision of whether to sell their current home before buying a new one.

The Great Real Estate Timing Puzzle

Let’s face it – timing your home sale and purchase perfectly can feel like trying to solve a Rubik’s cube blindfolded. But don’t worry! As a real estate expert in Quebec, I’ve helped countless clients navigate this tricky transition. Let’s break down your options and find the strategy that works best for you.

Understanding Today’s Market Reality

The housing market in 2024 looks very different from the pandemic boom years. We’re seeing:

  • Rising mortgage interest rates
  • Increasing housing inventory
  • A gradual shift towards a buyer’s market
  • Regional price variations

💡 Pro Tip: Always check local market conditions before making your decision. What works in Montreal might not work in Laval!

Selling First: The Traditional Approach

Benefits of Selling Before Buying

  • Crystal clear budget for your new purchase
  • Stronger negotiating position (no pressure from two mortgages!)
  • Simpler financing process
  • Peace of mind about your exact down payment

The Catch: Temporary Housing

Nobody loves moving twice. Temporary housing can be:

  • Expensive in today’s rental market
  • Logistically challenging
  • Time-consuming
  • Potentially stressful for your family

Buying First: The Bold Move

Think of buying first as playing chess – it requires strategy but can give you significant advantages:

Advantages of Buying First

  1. No rushed decisions under pressure
  2. Time for pre-move renovations
  3. Single moving day
  4. Opportunity to maximize your current home’s value

Smart Solutions for Double Mortgages

Worried about carrying two mortgages? Here are some creative solutions:

Bridge Loan Option

  • Short-term financing (6-12 months)
  • Requires excellent credit
  • Higher interest rates but provides flexibility

HELOC Strategy

  • Borrow up to 85% of your current home’s value
  • More flexible terms
  • Usually lower interest rates than bridge loans

Rental Income Potential

Traditional rental or Airbnb can help offset costs while you sell your current home.

Making Your Decision: A Practical Guide

Consider These Factors:

  1. Your financial situation
  2. Local market conditions
  3. Family needs
  4. Seasonal timing
  5. Risk tolerance

Questions to Ask Yourself:

  • Can you comfortably handle two mortgages temporarily?
  • How competitive is your local market?
  • Do you have flexibility with moving dates?
  • What’s your tolerance for uncertainty?

Professional Support Makes the Difference

Don’t try to navigate this alone! Working with experienced professionals can make all the difference:

  1. Get pre-approved for financing
  2. Connect with a local real estate agent
  3. Consider using the same agent for both transactions
  4. Explore innovative “Buy Before You Sell” platforms

The Bottom Line

There’s no one-size-fits-all answer to whether you should sell before buying. Your decision should be based on your unique circumstances, local market conditions, and personal comfort level with risk.

Remember my favorite saying: “Don’t stress, just assess!” Take time to evaluate your options, consult with professionals, and choose the path that aligns with your goals.

Ready to Take the Next Step?

Don’t be shy – reach out if you have questions about timing your home sale and purchase in Quebec. As your local real estate expert, I’m here to help you navigate this important decision with confidence.

Need more real estate insights? Check out our other helpful guides about:

  • Home inspection tips
  • Market timing strategies
  • Financing options

Remember, successful real estate transitions are all about careful planning and expert guidance. Let’s work together to make your next move your best move!

 


This is #AskPete. If you have any real estate questions, feel free to send them and I will get you the answers. Or stay up to date on the latest tips for real estate buyers and sellers by clicking the YouTube button below:

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