There are many benefits to being a move-up buyer. The most important advantage is that you are not a first-time buyer anymore. It means you have a better knowledge of the Toronto real estate market and more experience in the buying process. First-time homebuyers are mostly young people with limited cash, but move-up buyers are getting ready to buy a larger and more expensive house.
But whether you are a first-time buyer or a move-up buyer the best strategy is to act smart. Although you have more experience as a move-up buyer, it doesn’t mean that you don’t need a top Toronto real estate agent. Your Toronto realtor can offer you the best strategies, help you take the proper steps and finally make the best choices. Reading this article can also be useful for move-up buyers in all over the GTA to apply the best strategies.
Most Important Fears of Move-up Buyers
The first and most horrifying part is owning two houses. Usually, the first-time homebuyers in Toronto are tenants before buying their first house. And sometimes a move-up buyer may buy the next house before selling their current house. This can be a good strategy in a sellers’ market. But when your previous house is not paid off, you must first check with your lending institution to make sure about having two mortgages for a short time.
The second fear is when you sell your current house and still not buy the next one. This can be a good strategy in the Buyer’s market, but it might be terrifying to own no house even for a short time. In such a condition, you better consider this advantage that if you sell first then you will be completely aware of your affordability to buy next. So, this could partly be peace of mind. You only need to find a temporary housing option for the short term.
The next fear of move-up buyers could be what If they can’t find what they want. Because of all the changes in the Toronto real estate market, it is normal to have this issue in your mind. But again, if you act smart, there won’t be a problem. So, be flexible and don’t get disappointed. Use your agent’s advice and search for the best options available considering the market condition.
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What Are The Best Strategies for Toronto’s Move-up Buyers?
Now that you have decided to buy a bigger house in a better neighborhood, you should know how to face all the challenges to avoid the financial pitfalls and above-mentioned fears. The following strategies can help the move-up buyers in Toronto to make the final judicious decisions.
Buy First or Sell First?
Your current house is the most important factor to determine whether you should buy or sell first as a move-up buyer. If your current house is located in a popular neighborhood, or it is a modern downtown Toronto condo or a special loft, you can certainly sell it quickly. Since it doesn’t take much time to sell such a house, there would be no problem to buy first and then sell your current house. Otherwise, it may take 60 or 90 days to sell a house in a less popular neighborhood or an old condo with no remarkable amenities. In this case, the best strategy for move-up buyers in Toronto would be selling before buying.
Your financial resources are the next factor affecting your decision to buy or sell first. You must consider whether you afford two mortgages even for a short time or not. If you are unable to pay two mortgages simultaneously, the best strategy would be to sell first. And remember, the whole process is not cheap; you should also pay for land transfer taxes, legal fees, real estate agent’s commissions, moving costs and utility set-up costs for the current house. Calculate all the approximate costs first.
Timing for Your Sale and Buy
It is very important to align the time of your house purchase and sale for move-up buyers in Toronto. While you are determining the proper timing for the whole process, you must consider that it includes two other parties than you, a person you’re buying the new house from, and a person you’re selling your current house to. Their timing also plays an important role in the entire process.
The other important timing factor is to set the same day for moving out from the current house and moving into the new house. So, plan ahead, be flexible and manage your time correctly to organize the moving company and declutter your current house at the same time before the big moving day.
Finding YourDream House
If you afford to buy a house first and then sell your current house, you are not in a rush to move out or don’t need to find an alternative temporary place. You have enough time to shop around, and keep looking until you find your dream house. Typically, you will need a bridge mortgage in such a condition. Now that you have enough time to buy your new Toronto property, consider all the important factors first, and your favorite items about your dream house. But stay realistic! Stay away from fanciful decisions.
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Consider the following important factors while finding a new house:
- Neighborhood: Is it close to your office? Is there a high-ranked school or daycare in the area (if you have children)? Is there any leash-free park around (if you have a dog)?
- Size: How much bigger your next house needs to be? Do you need a home office for your business? Are you planning to grow your family and need a house with a second apartment for a nanny?
- Costs: Don’t forget that your new bigger house will have higher tax and utility bills.
- Style: What architectural style of Toronto houses you like for your future house? Is it compatible with you and your family’s lifestyle?
- Renovation and maintenance: What kinds of renovations and upgrades do you need in the new house? Do you have enough time for regular maintenance of a bigger house?
Get ready to sell your current house
It is very important for move-up buyers to prepare their homes for sale to accelerate the selling process. This will make everything easier and help sell at a higher price. Now it’s time to prepare your home for sale. So, you can simply ask your real estate agent to help you with a home stager. Or start with simple but effective changes. Paint the walls or kitchen cabinets, declutter, get rid of unnecessary furniture and do a few small renovations.
To conclude, ask your Toronto realtor to send you all the desirable homes fitting your budget and preferences. If you prepare your current house for sale, then you will be ready to buy your dream move-up home as soon as the right home comes to market. Good luck!
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