SHOULD YOU SELL YOUR CONDO FIRST BEFORE BUYING?

The current market is characterized by a stark contrast: a continual seller's market for most freehold homes and a more balanced market for condos. Making a choice about whether to sell your Toronto condo first, before buying your next home, can be a challenging one. There are several things to consider first and our number #1 piece of advice is to understand all the risks with either choice. 

Key considerations:  Make sure you look at these 4 factors before you decide whether to sell before you buy:

• Market conditions: The freehold market is highly competitive, while the condo market is less so. Is your condo in a coveted building or does it usually take longer to sell there? Are there any sales taking place in your neighbourhood?
• Financial situation: Your ability to carry two mortgages and the potential impact of selling your condo on your buying power. Do you need to sell in order to purchase or close on your next home? This is the biggest factor that you should consider because you don't want to be carrying the cost of 2 mortgages if you can't afford to do so!
• Timeframe: How quickly do you need to move? Understand the average days on the market in your area. And be prepared to be aggressive with price if you want to sell quickly!
• Risk tolerance: Your comfort level with potential market fluctuations. Will you be able to sleep at night if you are on week 3 of your condo being on the market?

Recommendations:  Essentially there are 3 OPTIONS:

• Selling first: Offers more certainty about your buying budget but could mean a tighter timeframe to find a new home. This is definitely the SAFEST CHOICE!
• Buying first: Provides more flexibility in your home search but carries the risk of not being able to sell your condo quickly or for your desired price. You should understand that you need the ability to afford 2 properties should the current condo not sell right away! Search Toronto condos for sale right now.
• Staying put: If you're not under immediate pressure to move, this might be a viable option given the limited freehold inventory.

Ultimately, the best decision depends on your individual circumstances. It's highly recommended to consult with a real estate agent who can provide tailored advice based on your specific situation.

Regarding your mortgage: Most mortgages are portable to a new purchase with the same lender, though fees may apply. Checking with your lender for specific details is essential.

Remember: The real estate market is dynamic, and conditions can change rapidly. Staying informed and seeking professional guidance is crucial.

Would you like to discuss your specific situation in more detail?

If you are looking for a detailed breakdown and have a more informed discussion with one of the best real estate teams in Toronto, give us a call at 416-457-1722.  We'd love to meet and help you.