Most of us do not have the financial means to carry 2 mortgages at the same time and the advantages of selling first and buying after are ample. By selling your current home first, not only will you know, in advance, exactly what you can afford to spend on your next home, you will also be in a stronger negotiating position. Selling your home first allows you to place fewer conditions on your purchase & make your offer more attractive to a seller. Sellers will often expect a premium price on offers that are “subject to sale” because they will have to wait for your home to sell before theirs is sold. If you find an attractive home, chances are other buyers will also find it attractive. If you’ve already sold your home, you will be able to negotiate and compete with confidence.
There are many costs associated with buying a home that is not included in the purchase price. Knowing all the costs associated with your purchase, in advance, will help you budget and ensure you are not surprised by unexpected additional costs. Some of the additional fees and costs you may encounter include Inspection costs, appraisal fees (if not covered by the lender), legal fees, property transfer tax, moving expenses, strata fees and levies, mortgage fees, and/or penalties, and more. Purchasing a new home? Watch for tax on top of the purchase price, landscaping, fencing, appliances, window coverings.