Moving from one home to another can feel like a monumental project. It’s exciting to envision what your life will look like somewhere bigger, newer, or more conveniently located. However, there are a lot of moving pieces to the process, each one requiring a decision and a new course of action. This is equally true whether you’re moving from across the country or to another block in the same neighbourhood.

When to sell your existing home, how to get ready for the market, and where to look next are just a few questions that will arise. Where do you get started with all of this?

In this post, we’ll help you decide on one of the most fundamental questions of all: should you sell your home in Midtown Toronto first, or is it better to make sure you have a place lined up before doing anything else?

Take a Look at the Market

Midtown Toronto real estate can be different than elsewhere. It’s not that the local market isn’t affected by the same economic factors as everywhere else. However, as a relatively affluent area, we are a little more insulated from the regular ups and downs.

In most Midtown neighbourhoods, people buy and sell because they want to, less often out of necessity. Their decisions are far more impacted by their personal situation than anything happening in the market. That said, it never hurts to have a handle on what you might be up against when it comes time to make your move. Here are the most common scenarios:

  • A Seller’s Market: Is there high demand for houses, both in your neighbourhood and the one you have your eye on? If there are too many buyers and not enough houses, selling your home will likely be fairly easy. Buying, however, could be much more difficult.
  • A Buyer’s Market: This happens when there are too many houses available and not enough buyers. Now, the opposite is true. Buying will be much more straightforward, while selling at a decent price can be challenging.
  • A Balanced Market: If there are an approximately equal number of buyers and sellers, you are even less likely to make your decision based on the market.

Buying in Midtown is both exciting and challenging! The resources below can help you get the best value:

When to Consider Buying First

Though market conditions are likely not the driving factor in your decision to move, they could very well affect whether or not you should buy or sell first. When prices are rising and every listing gets snapped up quickly, you may want to ensure you have a home to go to before you list.

Buying first can result in a less stressful move, especially for any young children or pets involved. Since you’re taking possession before your existing house closes, there is no pressure to be out by a specific time.

Often, you can take a few days to thoroughly scrub your new home while it is still empty. You might even decide to paint since there is no heavy furniture to move. This abundance of time is a luxury you would never have if you waited to sell your home before securing a new place.

If houses are selling quickly, they are also likely rising in value. This means the possibility of saving money on your new home by buying quickly. In addition, you can take advantage of extra equity growth the longer you hold onto your existing home.

The benefits of selling first can be appealing, but it depends on your risk tolerance. Could this course of action backfire? Let’s imagine the worst-case scenario: you commit to a new purchase, but your house doesn’t sell nearly as fast as you thought it would.

In this case, you’ll have to carry the cost of both homes until you can find a buyer. Your house will almost certainly sell eventually, but how long can you hold out? If covering two mortgages would become too heavy a burden, selling first is likely a better option.

When Selling First Is Safer

Selling your house before committing to a new purchase is the traditional path for a good reason. For most people and in most markets, it’s the safer choice. Let’s imagine that worst-case scenario once again. Your house takes longer to sell than you thought – or even doesn’t sell at all.

It can be disheartening to list your home and not find a buyer. However, it is far less stressful than if you had already signed an offer on a new place. Plus, you don’t have to guess and potentially overestimate how much your sale will generate. The funds will already be in your account, making it easier to budget for your next home.

The disadvantage is that once your house sells, you will have to move quickly. Closing dates typically occur 30 to 45 days after the signed offer. This doesn’t give you much time to find a new house, pack, and move.

The biggest risk of selling first is if prices rise sharply before you have the chance to secure your next property. Some buyers have ended up being priced right out of the market during extremely competitive situations. The chances of this are fortunately low, but it’s something to be aware of.

When you’re ready to sell, the resources below will help you get outstanding results:

The Key to Minimizing Risk

If you want to minimize your risks and maximize your potential with both your sale and purchase, working with a local real estate team is your best bet. Though any agent can technically assist you, remember that Midtown Toronto is highly nuanced. We have seen buyer’s markets everywhere except within a few choice neighbourhoods where homes remained in high demand, and vice versa.

An experienced expert can also help you clarify your personal goals and assess your resources so both transactions are as streamlined as possible. A successful sale and a high-value purchase lead to an exciting transition with minimal stress, whatever you decide to do first.

Do you need more guidance when buying or selling in Midtown? Reach out to us at david@batorigroup.com, bobby@batorigroup.com or call (416) 485-7575 with any questions.