Should You Sell Your Home Before You Buy a New One?

February 1, 2019March 19, 2019

Are you ready to trade in one house or condo for another? Whether you’re downsizing, upsizing, or simply looking for a home that will suit you better, the process can be complex. Timelines are particularly tricky—especially when you’re deciding whether to buy a new home before selling your current one (or vice versa).

If you’re preparing to move from one property to another, consider these pros and cons before deciding which step to take first…

Selling first

Leaning towards putting your house or condo on the market before you start your home search? Here are the major upsides and downsides of going the “sell first” route.

Pros

A better awareness of your financial situation

Knowing the potential value of your home can help you plan for the future. That said, you can’t be sure how much money you’ll get from a real estate deal until it’s completed. Selling first allows you to budget for your new home based on how much cash you actually have—instead of the amount you’re likely to receive in the future.

You’ll be well positioned to receive financing

Selling your house or condo can help you pay down your debt. That’s important, because lenders are far more likely to approve your mortgage if have a good debt-to-income ratio. Put simply: selling first can help you get the financing you need to purchase your next home.

Less risk

Many buyers find and purchase their dream home first because they believe they’ll have no problem selling their current property afterward. The truth is, making that assumption is always a bit of a gamble—even when market conditions are in your favour. If you can’t risk paying for two mortgages at once, selling first may be your best course of action.

Cons

The moving process can be stressful

There’s one major potential downside of selling first. If you don’t have a new home waiting for you when you move out of your current house or condo, you’ll have to find temporary lodging while you search for one. The result can be a whole lot of stress, since renting is costly and staying with friends is often inconvenient.

Buying first

Many home hunters opt to buy a new property before selling. If you’re considering this strategy, here are the potential positives and negatives to keep in mind.

Pros

It could help you buy your dream home

What happens if you find the perfect home before you put the one you’re living in on the market? Many buyers find themselves in this situation. If you’ve assessed the risks and feel confident that you could handle a worst case scenario, you might want to consider buying your dream home before you sell.

You could get a better deal

Sometimes, home buyers find a deal that seems too good to pass up. Perhaps the seller needs to access some cash in a hurry, or maybe they need to relocate for work or family. Whatever the reason for a phenomenal asking price, you may want to think about making the purchase asap.

It’s more convenient

We already touched on this, but it bears repeating: buying first simplifies the process of moving from one home to another. Depending on your circumstances, the convenience of being able to immediately set up your belongings in a new space may be worth any potential risk associated with buying first.

Cons

It’s financially risker

The fact is, you just never know how soon you’ll sell your home. Of course, working with a great, well-connected agent will increase your odds of selling quickly. That said, there are no guarantees—which means you could wind up paying the interest on two mortgages. Our advice: always be aware of the risks, and know how much you can afford.

You’ll be living with uncertainty

Owning two homes at once can impact you in ways that aren’t just financial. If you’re trying to sell a house or condo while moving into a new home, life is bound to get hectic. Not knowing when the right buyer is finally going to come along can also make the situation more stressful.

Should you buy or sell your home first?

Quite frankly, it depends. The answer often has to do with whether you’re in a buyer’s or seller’s market, but your unique situation should always be taken into account. As real estate agents, it’s our job to help you weigh your options and make the best possible selling and purchase decisions.

On that note, we should also mention that if you decide to buy a home first, there are steps you can take to reduce the associated risks. Bridge financing can take some of the pressure off during the transition phase. Likewise, including a home-sale contingency in your contract with a buyer will ensure that you don’t have to complete your purchase unless you’re able to sell your current home. For more information about these options, ask an experienced agent.

Preparing to navigate the process of buying and selling at the same time? We have the experience to help ensure that the transition is smooth. Get in touch to start a conversation today!

5 Reasons You Should Get Pre-Approved for a Mortgage

January 14, 2019March 19, 2019

It’s one of the most common home-buyer questions: should I get pre-approved for a mortgage? Here, we’ll discuss the top five benefits of obtaining pre-approval.

Are you ready to dive into the home hunt? If so, there are a few things you can do to pave the way toward a smooth purchase. Finding the right real estate agent is one. Determining your price range is another. But there’s another (very useful) step that many home buyers overlook—especially first-timers. We’re talking about getting pre-approved for a mortgage.

If you’re unsure about whether you need pre-approval, consider these five key benefits of completing the process.

1) Sellers will take you seriously

When you make an offer on a home, the seller wants to know that you intend to cross the finish line. Will you make it to closing—or will you back out of the deal at the last minute?

Pre-approval represents a commitment from a lender to loan you a certain amount in financing. It means a qualified professional has vetted you and (ultimately) decided you’re a good candidate for a mortgage. Pre-approval differs from pre-qualification, which is more of a rough estimate of what you could receive.

From a seller’s perspective, a buyer who’s successfully gone through the pre-approval process is a safer bet than someone who hasn’t.

2) It makes budgeting easier

Budgeting for the future can be tricky—especially when you’re about to make one of the biggest purchases of your life.

The good news? Once you have pre-approval, you’ll know what your borrowing capacity is. From there, you can start planning your monthly mortgage payments—and make an informed decision about how much your down payment should be.

Pre-approval isn’t an absolute guarantee. Things can change between the day you’re pre-approved and the day you’re ready to close on a home (for example, your credit can shift based on your activity). That said, your pre-approval amount should provide a pretty good indication of how much money you’ll have to work with.

3) You’ll waste less time

Pouring over online listings and touring gorgeous homes can be a lot of fun. But it gets old eventually. And when you’re looking at houses you can’t afford, it also gets frustrating.

Unfortunately, many buyers aren’t sure what their price range should be. They waste time looking at properties that cost too much—a surefire recipe for burning out. To avoid finding yourself in this situation, use your pre-approval amount to help you decide on a suitable price range. Keep in mind that you know your expenses better than anyone, and you should factor them in when you create a home-hunting budget.

4) You’re better positioned to negotiate

Are you still asking yourself, should I get pre-approved for a mortgage? If so, consider this. When it comes to buying the home you want, a great offer can get your foot in the door. From there, hopefully, you can move on to the negotiation stage—which can lead to a great deal.

Here’s where pre-approval comes in. When a seller is deciding who to sell to—and which concessions they’re willing to make during negotiations—they look at the whole package. A pre-approval letter can make your offer that much more appealing.

5) It’s a simple process

In our experience, many buyers have some pretty strong misconceptions about the pre-approval process. Let’s clear up one of the most common right now.

Pre-approval isn’t a major commitment. It doesn’t lock you into a mortgage, nor does it mean you have to work with a particular lender. While your pre-approved status will almost certainly help you out during your search, you don’t have to do anything with it once you’ve obtained it.

No aspect of your home hunt should be taken lightly. That said, obtaining pre-approval is a low-risk, high-value step in the purchase process.

Have questions about buying a home? We have the real estate knowledge and local market expertise to answer them. Get in touch to start a discussion about your needs today!

Hamilton vs Toronto: Which City is Right For You?

November 28, 2018December 19, 2018

Considering living in Hamilton vs. Toronto? Here’s what you need to know before making a decision…

Toronto has a lot to offer home hunters, from its lively core to its quieter enclaves. We firmly believe that there’s no better place to live than Canada’s largest city. That said, many Ontarians are gravitating towards smaller communities in search of lower home prices and a more relaxed pace of life. One of the most popular options is Hamilton. If you’re considering living in Hamilton vs. Toronto, here’s what you need to know to make an informed decision.

City Stats

Hamilton

Population: 536,917

Average age: 41.3

Average after-tax income: $36,820

Toronto

Population: 2,731,571

Average age: 40.6

Average after-tax income: $41,462

living in Hamilton vs Toronto

Amenities: Hamilton vs Toronto

Hamilton

There’s no shortage of great dining and shopping options in Hamilton. The city’s food scene is diverse, which means you’ll find something to munch on no matter what you’re in the mood for. A few of our favourite spots include Mezcal (which serves up some of the best tacos in the GTA), Quatrefoil (for French-inspired fine dining), and Aberdeen Tavern (for savoury fare such as pork chops and rack of lamb). Hamilton is also home to the Lime Ridge Mall, which houses over 200 retail shops. Popular shopping districts include James Street North and Locke Street, and you’ll find an eclectic mix of local stores in both districts.

Restaurants & shopping districts

• Mezcal
• Quatrefoil
• Aberdeen Tavern
• Lime Ridge Mall
• James Street North
• Locke Street

Toronto

There are far too many incredible restaurants and shopping districts in Toronto to condense them into one comprehensive list. Known for its mix of cultures and creative chefs, the city’s food scene is impressively diverse and wildly inventive. Standouts include Dailo (an innovative French-Cantonese spot in Little Italy), Ascari Enoteca (a noodle house that uses gourmet ingredients in Leslieville), and Nodo (for savoury Italian food in the Junction). There’s also an abundance of shopping options across the city. Check out the Eaton Centre for popular retailers, Yorkville Village for high-end and luxury brands, and smaller districts (like West Queen West) for funky local boutiques.

• Grey Gardens
• Dailo
• Ascari Enoteca
• Gare de L’est
• Bar Isabel
• Nodo Junction
• Yorkville Shopping Centre
• Eaton’s Centre
• West Queen West
• Kensington Market

Attractions and entertainment: Hamilton Vs Toronto

Hamilton

You’ll find plenty to do when you’re out and about in Hamilton. Outdoor enthusiasts will love Gage Park (a beautiful green space in the heart of the city) and the Royal Botanical Gardens (which feature 30 kms of trail). The Art Gallery of Hamilton is the largest art museum in Southern Ontario, making it a must-visit attraction for art lovers. If sports are more you’re thing, you’ll want to see the Hamilton Tiger Cats square off at Tim Hortons Field. The city also contains several historical sites of provincial and national importance.

• Gage Park
• Art Gallery of Hamilton
• Dundurn Castle
• Hamilton Children’s Museum
• Tim Hortons Stadium
• Royal Botanical Gardens
• Canadian Warplane Museum

Toronto

Toronto’s attractions are too numerous to count. First off, the city is full of gorgeous green spaces; High Park and Trinity Bellwoods Park are two of the most beloved. When it comes to cultural institutions, Toronto doesn’t disappoint. The Art Gallery of Ontario is one of the largest art museums in all of North America (though the city is also home to a thriving art scene that includes countless smaller galleries). The Royal Ontario Museum is one of the largest spaces of its kind in Canada, and the Bata Shoe Museum has an internationally-renowned collection. Simply put, Toronto is a treasure trove of incredible attractions and events.

• St Lawrence Market
• High Park
• Trinity Bellwoods Park
• Art Gallery of Ontario
• Royal Ontario Museum
• Casa Loma
• Rogers Centre
• Bata Shoe Museum

Transportation: Hamilton vs Toronto

Hamilton

Public transportation in Hamilton is provided by the Hamilton Street Railway, which operates along 34 convenient city bus routes.

Adult fare: $3.00
Day pass: $13.80
Monthly pass: $105.60

Toronto

The city of Toronto offers extensive bus, subway, and streetcar networks through the Toronto Transit Commission (TTC). The Go Train also provides service across the GTA, making it perfect for commuters from outside the city.

Adult fare: $3.25
Day pass: $12.50
Weekly pass: $43.75

Real estate Market: Hamilton vs Toronto

Hamilton

When it comes to housing, Hamilton is often considered a less-expensive alternative to Toronto. That said, prices can vary considerably depending on the neighbourhood and type of home you choose. Very generally, the average price for a detached house in the city sits around the $500K mark, while condos are typically closer to $300K. When it comes to housing stock, you’ll find a wide variety of historical pre-war homes. An increasing number of modern condo developments are also popping up in the city.

Toronto

From the Victorian homes of Yorkville to the sleek condos in the financial district (and everything in between), Toronto real estate offers something for every homebuyer. Prices reflect the incredible selection of neighbourhoods, housing types, and architectural styles available across the city. To find the home that’s right for you (and explore what’s available), talk to a real estate agent with expertise in your areas of interest.

Interested in learning more about some of the gorgeous homes available in Toronto? We have the local market experience to help you find your next dream home. Get in touch—we’d love to learn more about what you’re looking for and discuss next steps!

Detached vs. Semi-detached Houses: a Buyer’s Comparison

November 20, 2018November 22, 2018

Debating between detached vs. semi-detached houses? Here’s a closer look at each property type.

What are you looking for in a home? Do you have your heart set on a private backyard, plenty of indoor space, and the freedom to remodel whenever you want? If so, condo living probably isn’t for you. But depending on your financial situation, buying a single-family home (also known as a “detached house”) may not work for you, either. Fortunately, there’s another, more affordable option. We’re talking about semi-detached houses (or “semis”).

A semi offers many of the benefits of a detached home —at a significantly lower price point. In this post, we’ll compare these two attractive housing types to help you make a more informed decision.

Detached vs. semi-detached houses: what’s the difference?

First thing’s first: how is a semi different from a single-family home? Whereas the latter is a freestanding residential building, a semi is built as one of a pair. It sits directly next to its neighbour, sharing one wall.

As is the case with a detached home, buying a semi means you’re also buying the plot of land it sits on. This is worth mentioning, because it’s not always the case with side-by-side housing. Townhome owners may or may not share their plot of land with the other homeowners in their development. Often, they also share more than one wall with their neighbours (since townhomes are built in rows).

Our advice? If you’re weighing your options, be sure you know the differences between housing types. When you finally jump into the hunt, you’re bound to make a more informed decision.

Price

For most buyers, saving money is the biggest benefit of going the semi-detached route. We’re not talking about a small chunk of change. According to recent data from the Toronto Real Estate Board, the average price for a detached home in the city is $1,311,265. For a semi, that number is $1,026,829. Unless you’re dead set on buying a single-family home, cost savings of nearly $300,000 may be worth factoring into your purchase decision.

Space

Generally speaking, semi-detached houses are smaller than single-family homes—in terms of both indoor and outdoor space. They also tend to sit on long, narrow lots, which is often reflected in their dimensions. Keep this in mind if you’re planning on expanding your family. Also worth noting: construction costs for semis are usually lower, so buyers can often get more space for their dollar.

Noise

No comparison of detached vs. semi-detached houses would be complete without a brief discussion of noise. The truth is, a shared wall is a dealbreaker for many homebuyers—and, usually, that’s because of sound transfer. While semis with good soundproofing certainly exist, the walls in some of these homes can be thin. You may also find a gap in the separating wall toward the top of the building (in the attic). If you’re considering a particular semi and you’re sensitive to noise, be sure to ask the current owners specific questions about how the home is built and what type of soundproofing has been used.

Maintenance & repairs

One of the biggest pros associated with buying a semi is the potential to share responsibility for much of your home’s maintenance with your neighbour. If your roof is on its last legs, you may be able to pool your resources to get a good deal on a new one. If the lawn needs to be mown in both yards, you may want to consider taking turns doing the job. Sharing some of these basic responsibilities can make homeownership more cost-effective and convenient.

Practical concerns

There are a few other considerations in the detached vs. semi-detached houses debate. Parking is one. Many semis have a shared driveway, others have a private driveway, and some don’t have one at all. Your real estate agent can narrow down your search based on your parking and transportation needs.

Potential future renovations are another important thing to consider. The freedom to update your home is one of the biggest benefits of owning a semi. That said, remember that your shared wall may limit the renovations you’re able to perform. In rare cases, home improvements can also be a source of conflict between neighbours—though serious issues can usually be avoided by establishing clear communication.

The bottom line

Whether or not a semi-detached home is right for you will come down to your budget, and your priorities. Working with an experienced and knowledgeable real estate agent will ensure that you understand your options and make the right decision.

Interested in learning more about some of the gorgeous semi-detached homes available in the city? We have the local market experience to help you find your next dream home. Get in touch—we’d love to learn more about what you’re looking for and discuss next steps!