Renting
If you are renting there are two important issues to consider:
Lease agreements: A lease agreement is a legally binding contract and if you are in a lease agreement, you must be aware of when the contract ends. Don't assume you can get out of the lease agreement early, especially based on just a verbal agreement with your landlord. Too often tenants disregard their lease contractual obligations and find themselves unable to break the lease and end up paying a rent and mortgage payment.
Possession date: It's important to coordinate the possession date on your new home so it's a few days before month end, when you typically need to be out of your rental home. This gives you time for a leisurely move and also time to clean your rental home and leave it ready for the next tenant. Remember to give your landlord 30 days notice!
Own a Home
The most frequently asked question is ‘Do I sell first then buy, or buy first then sell?’
Ideally it’s best to sell your home before writing an offer on a new property. This holds true in any type of market. This strategy can save you money and here’s why:
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You know exactly how much you will net from your sale and have available for purchasing your next home.
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You won't feel pressured to take a low offer on your home in order to sell fast and meet your next home’s possession date.
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It eliminates the need to write an offer ‘subject to the sale of your home’, which gives you more negotiating power. Buyers usually end up paying more for the home because of this condition, and sellers are generally not excited to see such a condition.
It’s a good idea to have a place to stay lined up, just in case you don't find the next
home immediately after you sell. This may be with a friend, a short term rental or with a family member.
The only time we would advise you to buy first and then sell is when you are looking for a very unique property, or when the market is “hot”, and supply is much lower than the demand.
Most people will not be financially able to buy first and then sell, which eliminates this option. We advise you to check with your bank or mortgage broker before you do so.
Learn Step #3: Financing and Pre-Approval or contact us today!
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