The Saskatchewan Home Shuffle: Buy or Sell First?

Making a move in Saskatchewan, particularly around Regina, involves a significant decision that can stump even the most experienced homeowners: should you secure your next home before selling your current property or vice versa? Each path has its advantages and drawbacks, and the best route largely hinges on your unique situation. Here's an overview of the considerations that can guide you toward the optimal choice for your circumstances.

Buying Before Selling: The Pros and Cons

The temptation to purchase your dream house in Saskatchewan before selling your current one is understandable, especially if you stumble upon the perfect property. However, it's crucial to ponder a few critical points before proceeding.

Pros:

• Immediate Relocation: Purchasing a new home first means bypassing the headache of seeking temporary accommodation between transactions. Migrating directly to your new Saskatchewan residence sidesteps the inconveniences of handling storage or hopping into a short-term lease.
• Leisurely Move: Owning your next home gives you the liberty to move at your own pace, reducing the anxiety often associated with rapid relocations.

Cons:

• Financial Pressure: Juggling mortgages for two properties, unless you're purchasing without a loan, can intensify financial burdens. The scenario might necessitate tapping into your savings or acquiring a bridge loan to manage the transition.
• Urgency to Sell: With expenses tied up in two houses, you could find yourself in a rush to sell your current property, potentially settling for a lower price than preferred.

Selling Before Buying: A Look at the Pros and Cons

Opting to sell your home prior to purchasing another provides financial clarity but also introduces certain challenges.

Pros:

• No Double Mortgage: By selling first, the dilemma of dual mortgages disappears. You'll have a precise budget for your next purchase in Saskatchewan, streamlining your buying experience.
• Enhanced Buying Capability: With funds from the sale in hand, you're positioned to make compelling offers, a significant advantage in Regina's competitive market.

Cons:

• Temporary Housing Challenges: If your home sells before finding a new one, you'll confront the issue of interim housing. Whether it's renting, staying with relatives, or using a storage unit, each option has its drawbacks.
• Quick Purchase Pressure: Post-sale, the urgency to secure a new home might lead to compromises, possibly settling for a property that doesn't fully match your wishlist.

So, How Should You Proceed?

The correct approach depends on a mix of market dynamics in Saskatchewan, your financial stability, and personal comfort with risk-taking.

Current Market Conditions

Is it a buyer's or seller's market in Regina? In a seller's market, where demand outstrips supply, selling first might grant you an upper hand, enabling a swift sale. Conversely, a buyer's market, characterized by an abundance of listings, may advocate for buying first to avoid potential delays in selling.

Your Financial Situation

Financial resilience to support two mortgages, even temporarily, favours buying first. Conversely, a tight budget suggests that selling first could alleviate potential financial strain.

Risk Tolerance

If the prospect of juggling two mortgages or making a rushed purchase causes unease, consider selling first for peace of mind. However, if managing temporary financial overlaps or delaying your sale is within your comfort zone, buying first might be a wise strategy, offering more time to land your ideal Saskatchewan home.

Exploring Bridge Loans and Contingency Offers

Feeling torn? Bridge loans and contingency offers present additional avenues:

• Bridge Loans: This short-term financing option bridges the gap between purchasing your new home and selling the old one, mitigating the rush to sell promptly.
• Contingency Offers: Proposing to buy a new home contingent upon selling your existing one protects against dual ownership risks. Be mindful, though, as not all sellers in Saskatchewan's market might entertain such conditions.

In conclusion, whether to buy or sell first in Saskatchewan requires a careful assessment of market conditions, your financial landscape, and your personal risk appetite. By thoroughly weighing these factors, you can align your approach with your needs, ensuring a smooth transition to your next home.