Market Analysis: Timing is Key
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Buyer’s Market: Many properties, few buyers. Buying is easier, but selling may take longer. Solution: Buy with a sale contingency or negotiate extended deadlines.
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Seller’s Market: Few properties, high demand. Selling is easy, finding a new home can be difficult. Solution: Sale completion clause or a post-sale rent-back agreement.
Buyer’s market vs. seller’s market
Buyer’s market: There are more properties on offer than potential buyers.
Buying a new home is easier, but selling can take longer.
Sellers are more willing to accept offers with a sale clause that ties the purchase to the successful sale of the previous property.
Sellers’ market: There are more prospective buyers than available properties.
Houses sell quickly, but it can be challenging to find a new property.
A leaseback agreement after the sale can buy time to find a new property
Financial Planning: What’s Feasible?
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Equity: How much remains after paying off your mortgage?
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Liquidity: Can you finance the new home before selling the old one?
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Options: Bridge loans, increased mortgage, or temporary rental income can help.
Buy First, Then Sell: Pros & Cons
Pros:
✔ Seamless move without temporary housing.
✔ No double moving or storage costs.
✔ More time to find the ideal property.
Cons:
✘ Risk of dual financing.
✘ Pressure to sell may lower your sale price.
✘ Buyers may hesitate to accept offers with a sale contingency.
Sell First, Then Buy: Pros & Cons
Pros:
✔ Clear financial picture.
✔ No risk of double mortgage.
✔ Stronger negotiation position when buying.
Cons:
✘ Temporary housing may be needed.
✘ Extra moving and storage costs.
The Right Partner Matters
An experienced agent can:
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Accurately assess your property’s market value.
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Create a buying and selling strategy.
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Negotiate the best possible sale price.
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Guide you safely through both transactions.
Conclusion: Strategy is Key
A parallel sale and purchase is a challenge, but with a clear plan and expert support, you can make it a success.
