It is important to evaluate the market conditions in your specific area in order to come up with the best strategy when buying and selling real estate.
Buy First then Sell
Buying first, puts the pressure on selling your home within a tight time frame. A gutsy move in any market requiring expert market analysis and a focus to ensure your home shows well to a broad audience. The Toronto Real Estate market has experienced a fairly aggressive Sellers market in most communities over the past year. This means that due to many factors (such as low lending rates and low inventory of homes) fairly priced homes are able to sell within a matter of days or weeks. Although there is no crystal ball Spring Realty is constantly evaluating the market statistics and predicts a more stable market with fairly flat appreciation in 2012 leaning more toward a ‘Sell First’ strategy.
Sell First then Buy
This is a strategy that works best in a declining market or balanced market. Under such conditions buyers often take a ‘wait and see’ approach hoping for sellers to cave into lower prices. Sellers keep their properties on the market longer waiting for ‘their price’ which increases inventories. In this scenario there are few “bidding war” type situations. Selling first would get you out of your current investment and will give you the ability to choose from one of the many available options without competing with hundreds of other buyers. This strategy also has the backup option of a lease if the right home isn’t found within the time frame.
To keep it simple Spring Realty suggests you Buy First in a “Hot” market and Sell first in a declining or balanced market. Of course this is a general rule of thumb and there are always exceptions. Contact us to discuss your specific situation.
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