Should you buy or sell first in 2022?
It’s an age old question for those in the market to buy real estate.
If you have a home to call your own, but are looking at making a move, which do you do first? Should you find yourself your dream home and buy it? Or should you sell your home first to get a handle on things?
In the first quarter, should you buy or sell first in 2022 was an easy question to answer. With market prices at an all time high and inventory at an all time low; if you found the home of your dreams, your best bet was to put in an offer and buy it – before someone else did. Your home would likely in turn sell in no time.
Ah the unicorn market. It was magical.
Fast forward to the last few months of the year, more than a few interest hikes later, and well…
We have ourselves a very different story.
Todays market has shifted quite a bit, so let’s have a look at the pros and cons to each.
Pros of Selling First
- The liberty of entertaining many offers on your home (possibly multiples) at your discretion.
- Gets finances in order! You know exactly what you can afford to buy.
- Puts you in the driver’s seat of price negotiations, when you want to close your current home & other important details.
- A higher chance of your bank or mortgage broker to give you the green light on your purchase.
- Allows you to shop for your dream home with confidence!
Cons of Selling First
- You may be forced into buying something that isn’t your “perfect home”.
- Time-wise, closing dates not adding up may pressure you into a rental for the short term.
Pros of Buying First
- You have no pressure to find a home! Take your time to consider all options, neighbourhoods, styles etc. as there’s no rush.
- Buyers are facing less competition in the market place in the latter part of 2022. Negotiations on pricing & conditions in offers are back and yours to be had.
- You find “the perfect one”.
Cons of Buying First
- Financing contingent on selling your home first could fall through and leave you stranded on closing if your current home doesn’t sell.
- Or on the flip side, you could end up with 2 properties.
- There may never be “the perfect one” and you never end up moving beyond your current home that doesn’t sit well with you and/or your family for various reasons.
- You may be forced into accepting an offer on the sale of your current home that’s less than you hoped for in price due to time crunches.
- Those same negotiations you used to buy your home can be used on you, but this time your the one who could be pressured into accepting less than awesome offers with many conditions, longer closings etc.
When it comes down to it, the answer to should you buy or sell first in 2022 will vary depending on circumstances.
However as your preferred real estate consultants, our two cents is that selling first in today’s market is a safer bet, especially for the risk averse. Always protect yourself in the chance that your dream home ends up becoming financial nightmare.
If your thinking about elevating your real estate experience, don’t be shy – call Abode Realty today!