Buying and selling properties at the same time in today’s market can be tricky and stressful, however there are steps that you can take that will help. Here are some things to consider when you find yourself in this situation.

• Lose from Both Ends of the Transaction: Most of my clients cannot afford to hold two mortgages, so when you find the right house, we will have to include a clause that allows you to sell your property as a condition of your purchase. This condition alone is less appealing to many sellers and due to this they may want more money for their property, or even reject your offer all together. However, in the event that all parties can come to an agreement, we would have to rush to put your house on the market and competitively price your home to get it sold as quickly as possible. What this all means is that in the end you will likely pay more money to buy your new home and accept less money when you sell your current home because you are in a rush to sell, resulting in a loss for you on both sides.
• Instant Savings: although this market is not ideal for you to sell your current home, it is still a good time to upgrade. The reason is that although you may not get as much for your current property, you are going to get a better "deal" on the new house that you are buying. See the following example:
• Market: In a hot, seller’s market, you have little housing inventory to choose from and the best properties will likely go into multiple offers, typically resulting in paying above market value. Upgrading in a balanced, or buyer’s market, is ideal as you have more options, less competition and time to ensure that this is the right decision for you.
• Interest Rates Rising: Over the last few years, we have seen historically low interest rates. As per Firstline Mortgages, did you know that from 1986 – 2010, the average interest rate has been 8.23%! While today the current rate is in the range of 4.39%! Rates are only expected to continue to rise so if there is one way to save money when purchasing a home, it is taking advantage of these lower rates. See below for an example:
• Finding & Losing the New Home: In today’s market it is easier to buy a home than it is to sell one, Edmonton’s average days on market to sell a property is at 44 days, and in many cases it may take even longer. I have worked with many clients who have approached buying their new home before they have sold their current one, and it is unfortunate to say that the majority of the time, this approach leads to more stress and heartbreak. It can take months or even years to find the right home, and unless you have sold your existing home first, you run the risk of losing your new home because your old home just isn't selling.
• Do You Know what Tomorrow will Bring?: I wish I had a Crystal Ball! I have gone through the boom, the bust and the balanced market since I have been in real estate and I have noticed that there are rarely any big warnings that a market is going to change course. There can be small whispers that suddenly turn into high inventory levels, longer days on market and decreased sale prices or within a blink of an eye you can be dealing with multiple offers and houses that don't last longer than a week on the market. There are so many factors that affect the real estate market that it is even difficult for economists to predict. Interest rates, migration, employment and international issues are all factors that affect the housing market. We can only deal with what is happening today, the real estate market that exists now. What happens tomorrow is anyone's guess!

At the end of the day, the most important thing to consider is, whether in a good market, or a bad one, is this the right time and move for you? Speaking to your team, which include your REALTOR® and mortgage representative are crucial to ensuring that you have as much information to assist you in this decision. I am here to help my clients through any market, and my advice will differ accordingly, but again we will always look at what is the best move for you. If you have any questions in regards to buying and selling in Edmonton’s market today, please do not hesitate to contact me and I would be happy to assist you in reaching your goals.