Selling a house to buy a new one on the same day might sound convenient, but it comes with potential risks that homeowners should be aware of. In a fast-paced real estate market, many Canadians attempt same-day transactions, selling their current home and closing on their new one within hours. This strategy aims to prevent having to carry two mortgages, but it can lead to significant financial stress if things go wrong.
One of the biggest risks is the timing of the transactions. If the sale of your current home is delayed for any reason—such as a buyer's financing falling through—it can prevent you from closing on the new home. This creates a domino effect that can leave you scrambling for solutions, like finding temporary housing or bridge financing, both of which can be expensive and stressful.
Another issue to watch out for is unexpected problems with the new home, such as repairs that weren’t disclosed during the inspection. These surprises can make the transition more complicated, especially if you’re already in a time crunch to move in. Additionally, if your sale price doesn’t meet expectations, you might not have enough funds for the new purchase, further adding to the pressure.
Experts suggest allowing for a buffer between transactions, even if it means carrying two properties for a short period. This gives you time to deal with any unforeseen problems without risking both deals falling apart. While same-day transactions may seem like a way to avoid financial burdens, the risks can outweigh the benefits if things don’t go exactly as planned.
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