Buy or sell first?

If you are a homeowner considering a new home, you are probably wondering about the strategy: wait to find the perfect new home before listing yours, or sell first and then look? You have a few options. Use the following as a guide to what might be the best move for you.

Sell first

You know exactly how much money you have to work with and you are not carrying two mortgages. The risk is timing: if you cannot find the right home before completion, you may need a rental or a long completion date. Nadia often negotiates 60 to 90 day completions for her sellers to create that window, and she starts the buying search in earnest the moment the sale goes firm.

Buy first

You secure the home you want with no rush. The risk is financial: if your current home takes longer to sell, or sells for less than expected, you can be squeezed. This works best in a strong seller's market, with bridge financing arranged in advance, and with a realistic, evidence-based price on the home you are selling.

Subject to sale

An offer on the new home that is conditional on selling your current one. Sellers accept these mainly in slower markets, usually with a time clause that lets them keep marketing and bump you if a firm offer arrives. It is the safest route financially and the least competitive.

How to decide

• Market temperature for your home versus the market you are buying in. Selling a condo to buy a detached home is different from the reverse.
• Your financial cushion and whether a lender will bridge you.
• How specific your next home needs to be. A rare property argues for buying first; a common property type argues for selling first.
• Your tolerance for a short stay in a rental.

Run both scenarios with Nadia

She will price your current home, show you what is realistic to buy, and lay out the timeline for each path. Most clients find the answer is obvious once the numbers are on the table.