The amount of time you need to identify, purchase, and move-in to your next home can vary greatly depending on your needs, your local housing market, and the type of property you are seeking. For a typical residential transaction, a 3-to-4-month timeline is realistic if you are working efficiently, and you already know specifically what you are looking for.

That being said, it’s not uncommon to take a year or longer to buy a home, and there’s absolutely nothing wrong with that! If you are still getting to know an area or are still determining if investing in a home aligns with your long-term plans, there is no benefit to rushing into a decision.

Below are some questions you can ask yourself to help set expectations about how long your home buying process may take:

Do I have a clear vision of what my ideal home is?

Having well-defined home search criteria will streamline your search process and prevent you from wasting hours touring homes that aren’t a good fit.

Start by establishing the basics like: square footage, lot size, location, number of bedrooms and bathrooms, parking, and price range. Then, refine your search further if you are seeking features like a walkout basement, ensuite bathrooms, or an eat-in kitchen.

If you are not finding enough homes that fit your criteria, you may need to broaden your search, increase your budget, or consider taking on a renovation project or building a custom home. On the other hand, if you are seeing too many options, you’ll want to narrow your criteria so that you aren’t overwhelmed.

Do I need to wait until the end of my lease or to negotiate breaking my lease with the landlord?

If you find the perfect home but still have several months left on your lease, breaking your lease early may still be worthwhile, especially if you know someone who can sublet the unit or if the landlord will be able to easily find a replacement tenant.

In many standard leases, the landlord is required to make a reasonable effort to re-rent the property after you move out. You would only owe the landlord for the months that the property remains vacant through the end of your original lease term.

If you are  able to schedule your settlement date so that it aligns with the end of your lease, it will make for an easier transition into your new home. One to two weeks of overlap (i.e., your lease ends 1-2 weeks after settlement), will give you some cushion in case of delays, and you’ll have time to paint or make other small renovations before moving your belongings in.

Do I need to sell my home before buying?

If you own a home and need the sales proceeds for your next down payment, look at the average “days on market” (DOM) for your current neighborhood and compare it with the area in which you are searching. If you think your home will sell in about 28 days, but the homes you are searching for typically sell in only 7 days, you’ll want to list your home before submitting an offer. You’ll also want to price your home accurately or even slightly below market value to generate sufficient interest.

If the scenario is reversed, and your current home is in higher demand than the homes you are shopping for, you'll likely want to list your home only once you are ready to start submitting offers for your next home, although there are several ways to approach this situation, especially if you have some flexibility in your schedule. Get in touch if you'd like to discuss your options.

You’ll also want to allocate time for renovations that may be necessary to get your home listing-ready. Allow time for potential delays, especially when it comes to ordering new kitchen appliances.

How familiar am I with the neighborhood or zip code that I want to live in?

If you are looking to buy in an area that you aren’t currently living in, it’s helpful to spend some time familiarizing yourself with the neighborhood so you can be sure it's a good fit for your lifestyle. Visit during the week and on weekends, and especially during rush hour if you plan to commute on a regular basis.

Check out the local grocery stores, restaurants, coffee shops, shopping centers, gyms, or other businesses that you will be frequenting to get a sense of the character and demographics of an area.

Will the home be move in ready or a fixer-upper?

If you're looking into buying a fixer upper, before submitting any offers, give yourself plenty of time to interview contractors so you can find someone that you trust and are comfortable working with. Schedule walkthroughs with the contractor so you can get their feedback on the feasibility of your renovation ideas.

Speaking of feasibility, if you are planning large scale renovations or construction, you should include a feasibility contingency in your purchase offer which will afford you the time to determine if your plans are realistic and will fit into your budget.

Is the property a short sale?

If you are buying a short sale property, be prepared for a much longer closing timeline. A short sale occurs when the owner needs to sell for less than the amount owed on their mortgage. Because the sale needs to be approved by the lender that holds a lien on the property, the process can take multiple months and involve much more paperwork and negotiations.
 
Additional liens on the property from overdue taxes or HOA fees can also extend the timeline if they aren’t addressed at the start of the transaction.

Putting a plan in place

Setting a realistic timeline for your home purchase is essential for keeping you focused on your goals and staying motivated, especially when unexpected delays or challenges arise. Do you have questions about a particular scenario or want help creating your home buying plan? Let’s get in touch to discuss your needs.