List on the MLS in Victoria BC first? Or Buy Victoria Real Estate First?
We are often asked by clients who are planning an upcoming move, should they buy real estate first and then list their home for sale? Or should they list on the Victoria MLS first and then buy once they’ve sold?
The strategy you take will be based on many factors including your financial situation, your risk tolerance, and the type of home you plan to sell or buy. Here are a few factors to consider for yourself:
1. Financial situation
These are some of the question we need to consider when looking at your financial picture:
- How much are you pre-approved for?
- How much equity is in the home?
- Once you sell your home, how much is left over after all your expenses for a down payment?
- Is there any other cash available for a down payment or expenses?
- Do you qualify for interim financing?
- Do you qualify for bridge financing?
We reccomend working with a mortgage professional who can help you weigh the benefits and risks of each financial strategy. We also help you weigh your options and determine what would work best for your unique situation.
2. Risk Tolerance
This can relate to a number of factors including how comfortable someone is listing on the MLS in Victoria before they know where they are going. The alternate option is buying a home in Victoria BC before knowing how much money you will net from the sale of your home.
Risk tolerance can also relate to how you feel about making an offer without certain conditions. We help our clients weigh the risks when they are making these decisions.
3. Type of Home
Each home type, location and price point has their own mini market. For example, the houses for sale in Victoria have been a sellers market over the last year. Alternatively, condos for sale in Victoria has been a more balanced market. Waterfront beach houses for sale in Victoria and acreage, cabin and cottage properties have been selling very fast. The luxury condos in Victoria BC have been a much slower market.
Putting it all together: Selling first and then buying
Here is a recent success story of clients of ours who bought a house for sale in Esquimalt BC and sold their townhouse in Esquimalt BC.
Our clients knew they needed more space but were nervous about selling their Victoria home, because they were scared they wouldn’t find a home to move to that would work for their family and fit within their budget.
When they started working with us, they thought they wanted to buy a home first and then sell their home after to ensure they would have the perfect home to move to. They spent a lot of time preparing their home for sale so it would be ready to go as soon as they bought the right house. Some client who choose this strategy may even get photos and floor plans done ahead of time so we can list the home on the market as soon as they are ready to go to market (usually in a fairly quick timeline)
As the market heated up, it was becoming impossible to write an offer with a subject-to-sale clause. We ended up changing their strategy to sell their home first. The goal was to secure an offer with a long closing date which would give them lots of time to shop for their next place. We also ensured they had flexibility in the contract to move up their closing dates if they needed to. By using this tactic, it’s easier to give the seller’s of their future home their preferred move dates and for us to have a more competitive offer.
After we put their home to market, what resulted was the perfect situation where they sold for more than they expected, had time to shop for their next home, and were able to make an offer on their next home with confidence that it will fit within their budget.
We could not be more excited to celebrate with them on key day!