Don't Try to Time the Real Estate Market: Do This Instead

If you own a home and you’re trying to time the market… good luck. As Joe Gonzalez puts it, the crystal ball store sold out last week.

Nobody can reliably predict the top or bottom of a real estate market. But if you’re both selling your current home and buying another, there’s a smart way to reduce your risk.

Minimize your exposure

Your “exposure” is how much the market can move against you while you’re between homes. The longer the gap between selling and buying, the more the market can shift:

• Sell now and buy a year later, and prices might have climbed.
• Buy now and sell a year later, and prices might have dropped.

Either way, a long gap means a bigger potential win or a bigger potential loss. It’s a gamble.

The solution: buy and sell in the shortest time possible

When you sell and buy within a short window, you’re doing both in the same market conditions:

• If prices are down, you sell for less, but you also buy for less.
• If prices are up, you buy for more, but you also sell for more.

It mostly evens out, and you avoid betting on where the market goes next.

How to coordinate your sale and purchase

1. Plan your timeline with your REALTOR® before you list.
2. Line up your financing so you can move quickly on your next home.
3. Negotiate closing dates that work together.
4. Have a backup plan, like a flexible closing or short-term rental.

Buying and selling in Niagara?

We coordinate both sides of the move so the timing works in your favour.

Call 289-276-1716 or talk to us about selling.