Buy first or sell first? Knowing what to do first in Vancouver’s Real Estate market depends on a few key factors.
Here’s a few questions to help you find the right answer:
- Are you in a Buyer’s Market or Seller’s Market?
- The specific housing type you’re looking to buy and sell (detached house, townhouse, condo)
- The condition of the property you’re looking to sell
- Your timeline
- Your finances
Are you in a Buyer’s Market or Seller’s Market?
In real estate we look to the Sales – to – Listing Ratio to know if we are in a Buyer’s Market or Seller’s Market. This is a ratio of the number of homes sold vs the number of homes listed. While we often look to Average Sale Price to assess how the market is performing, inventory is actually the best indicator of the overall market conditions.
Seller’s Market = above 20%
Balanced Market = 12% – 20%
Buyer’s Market = less than 11%
If you’re in a Buyer’s Market you’re likely to sell first then buy. If you’re in a Seller’s Market you’re likely to buy first then sell. If you’re in a Balanced Market this depends on a number of factors primarily based on your personal financial circumstances and the type of product you’re looking to sell and buy (detached house, townhouse, condo, duplex).
It’s important to look at the stats of the specific neighbourhoods you’re buying or selling in and ensure that you have an accurate understanding of each specific real estate market before making an informed decision.
Using SnapStats, I can guide you through the decision making process and ensure you feel comfortable in a best and worst case scenario.
Lastly, you may also want to consider a Subject to Sale offer. This is when the purchase of your next property is conditional on the sale of your current property. This type of transaction is seen in a Balanced or Buyer’s Market or in niche & luxury markets.
Know that in real estate, it’s never clear cut. Every client is different, every transaction is different, and my goal is to provide you with the tools and information to make an informed decision that works best for you.
Vassi Balatico: 778-688-4948