Moving in West Toronto: Is it Better to Buy First or Sell First?

As a real estate team in West Toronto, something we get asked all the time is “Should I buy my next home first, or is better to wait until my current home is sold?” 

In reality, there isn’t actually a one-size-fits-all answer to this question. Every client is different – including you! So if you’re thinking about heading to the market and are wondering which option is best, it’s important to recognize the personal nature of this question before jumping in. 

Whether we’re helping clients who are buying a home, selling one, or chasing different real estate goals, creating a completely personalized strategy is what we do best. And, in our decades of doing exactly that, we’ve recognized a handful of essential questions that can help you determine which path is right for you. 

Thinking about breaking into the market as a first-time buyer? We recently shared our thoughts on why it’s better to buy a home than keep renting. Click here to read. 

Assessing Your Goals

When we say there’s no universal answer for whether it’s better to buy first or sell first, what we really mean is that both options have distinct advantages and drawbacks. With this in mind, determining which route will be best for you starts with assessing your personal plans. 

Think about your motives for moving in the first place. Are you downsizing from your family home into a condo or townhouse? Perhaps you’re ready to turn the equity from your first home into your dream home. Or, maybe you’re relocating out of town. 

By unpacking your intentions and ideal outcomes, you’ll be able to give your real estate agent helpful information that will inform their recommendation.  

Looking for buying resources that can make your upcoming move easier? Why not check out these posts from our blog? 

• How Buying a Condo in West Toronto is Different Than Buying a House
• 3 Reasons Real Estate Transactions Fall Through and How to Avoid Them
• What to Look for in a Family Neighbourhood

Understanding the Current Market 

In addition to your personal goals, the next factor in determining which path is best for you will be the market. In West Toronto, real estate conditions impact buyers and sellers in more ways than one. You may already be familiar with terms like ‘buyer’s market’ and ‘seller’s market’, however, it’s important to recognize that these dynamics have much larger implications than just the costs of housing. 

In an outright seller’s market, it typically makes the most sense to buy your next home first. This is because the purchasing process will likely take a lot longer than selling. In these conditions, buying first eliminates the risk of selling your home and being stuck without a new one in time for the possession date. 

In a buyer’s market, these dynamics flip upside down. When buyers have greater inventory to work with, it makes sense to sell your current place first before finding your next home. 

What About Home Sale Contingencies?

Under certain market conditions, some buyers may elect to include a home sale contingency in their offer in order to prevent being stuck with two mortgages at once. With the buyer’s purchase being conditional on the sale of their current home, they could technically pass on the deal if it doesn’t sell within a specific timeframe. 

Because this contingency heavily favours the buyer, sellers aren’t often incentivized to accept these types of offers. Depending on the market, your real estate agent can help you decide if making a conditional offer like this could work for you. 

Selling your West Toronto home? Explore some of these resources from our blog for helpful insights about selling.  

• The Power of Staging a Home to Sell
• Selling After a Divorce: What You Need to Know
• How to Sell a Home With Tenants

Getting Started 

When you’re ready to head to the market, the Smith Proulx Team has you covered. Whether you’re buying, selling, or both, our family team can provide you with personalized, end-to-end support that maximizes your chances of success. 

We know West Toronto like the back of our hands and are proud to live and work here every single day. With multiple decades of industry experience, we’ve represented clients in all kinds of market conditions. Whatever your vision of a perfect move may be, we’re happy to help you accomplish it. 

Looking for a real estate team that can guide you through the complex buying and selling process in West Toronto? The Smith Proulx Team can help. Send us an email or call 416-769-6050 to get started.