Right now much of Canada is in a changing marketplace and we’re seeing the characteristic patterns that go with it.
The inventory of attractive listings in many markets is lower than we’ve seen at any time in the past 10 years and buyers are going after properties more aggressively then we have previously experienced.
This kind of market can be good news for sellers, while buyers often find their in a multiple offer situation. Sellers who want to sell their existing property and buy a new one are asking what they should do first.
Unfortunately there’s no one right answer to that question. However, while each situation is different, there are some common factors to consider that may help with the decision.
When demand is lower than the supply of properties the resulting buyer's market often means buyers are slower to make an offer when they see something they like.
Also their first offers are often lower since they don’t have competition breathing down their necks.
As real estate professionals we help sellers price their properties smartly to take advantage of whatever the current market is doing and ideally, their properties will sell at a good price within a short window of time.
However, if your property does sell quickly, it doesn’t necessarily mean that you have to vacate it quickly.
Your agreement of purchase and sale will specify your transaction closing date. While this date is typically sixty or ninety days from acceptance of the offer you are free to choose a closing date that’s much later.
In a buyer's market your buyers may not be as agreeable to your timing unless they feel that they have negotiated a good price.
If a sellers property lingers on the market longer than the average time it takes for properties in the area to sell, it's best for sellers to adjust the price quickly so they will not miss qualified motivated buyers and they can also avoid their listing becoming stale.
Selling an existing property first helps keep an offer to purchase the next property as clean, simple and attractive as possible.
By eliminating the need for a condition to allow for the sale of an existing property, a buyer removes any fear their seller may have about holding up the sale for a prolonged period of time, or the very real chance that the condition may never be fulfilled. (only 73% of properties listed for sale in 2019 actually sold!!!)
Going in with a firm offer puts a buyer in a much better position to negotiate the sale as most sellers prefer a straight forward offer with a closing date they can work with.
As real estate professionals we have been counselling sellers since the 1980's on the pros and cons of buying or selling first and can also help you to make an informed decision.
For a private consultation with Joyce Byrne's Team, contact us through our office at 519-471-8888.