ottawa dream home

You found your dream home, but haven’t sold your current house yet. Now what?

It happens: You walk into a home and completely fall in love with it. You can picture yourself living there, how you’re going to decorate, even how your furniture will fit. There’s just one little issue, though: You haven’t yet sold your current home. 

This can be a tough one, especially since emotions are involved. You definitely don’t want to lose out on your potential new dream home. But on the other hand – as with most things in life – you recognize how important it is to have all the information (and ideally money) before making the move.

So, what are your next steps?

Get a clear picture of the market.

First of all, it’s important to know what the current market looks like, as the decision to buy or sell comes down to potential risk, financially speaking. If it’s a seller’s market, where there is more demand than supply, it may make sense to buy first and sell second. 

It also makes sense at this point to get a market evaluation for your current home, and have a professional REALTOR® come examine your property, and show you comparable homes either currently on the market, or ones that have recently sold. 

Assess your financial situation.

Proactively assessing your finances is key. Understanding your situation will help empower you to make the right decision. Can you afford to buy before you sell? Enlisting a trusted mortgage professional here is a huge asset, to help guide you through the process and provide personalized advice. I have several fantastic mortgage professionals in my network that I’d love to connect you with. 

Consider a bridge loan.

If you are set on making the purchase first, a bridge loan could be just the thing you need to make it happen. Like its name suggests, a bridge loan *bridges* the financial gap between purchasing your new home and selling your current home, ensuring you have the necessary funds for the purchase, and that you feel less financial strain in the interim. 

Implement a contingency clause, or “subject to sale” offer.

This is my number one recommendation when making a purchase before a sale – it’s basically a conditional offer, whereby the purchase only goes through if you are able to sell your current home in a specified amount of time. 

This clause not only protects you from owning two homes simultaneously, but it provides you with additional opportunity to negotiate other terms of sale, like the ability to synchronize closing dates for both homes, making your transition from one home to another as seamless as possible – the ultimate goal. 

Have you fallen in love with a new home recently? Don’t hesitate to reach out, and benefit from my network of trusted professionals.