If you already own a home and are thinking about moving, one of the first questions you’ll probably face is: Should I buy my next home first, or sell my current home first?
There isn’t one right answer for everyone. The better approach depends on your finances, how easily your current home is likely to sell, what you’re looking to buy, and how much uncertainty you’re comfortable carrying.
For homeowners in Burlington, Oakville, Hamilton and surrounding communities, we generally recommend looking at both sides of the move together before making a decision. Understanding the likely value and saleability of your current home — as well as what’s available in the market you’re moving into — can make the decision much clearer.
The Short Answer: Buy First or Sell First?
Selling first generally provides more financial certainty. Buying first gives you more control over finding the right next home.
If you sell first, you know exactly how much equity you have available and you eliminate the risk of owning two homes for an extended period.
If you buy first, you have the freedom to wait until you find a home you really want, but you need to be comfortable with the possibility that your existing home may take longer to sell than expected.
The right strategy comes down to balancing financial risk against housing flexibility.
When Does It Make Sense to Sell Your Home First?
Selling first can be the safer approach, particularly when market conditions favour buyers or homes are taking longer to sell.
You Know Exactly What You Have to Spend
Once your home is sold, you know:
Your actual selling price
Approximately how much equity you'll have available
The closing date you're working toward
What price range you can comfortably consider for your next home
This can make shopping for your next property much easier.
For example, there can be a significant difference between expecting your Burlington home to sell for a certain amount and having a firm sale at that price. If your next purchase depends heavily on the proceeds from your existing home, that certainty can be valuable.
You Reduce the Risk of Carrying Two Homes
Buying before selling can potentially leave you responsible for two properties at once.
That could mean temporarily carrying two mortgages along with property taxes, insurance, utilities and other expenses.
Selling first largely removes that concern.
You May Be in a Stronger Buying Position
Having your existing property firmly sold may also make it easier to structure an offer on your next home.
Depending on your circumstances, you may not need to make your purchase conditional on selling your existing property. In a competitive situation, fewer conditions can sometimes make an offer more attractive to a seller.
However, there is a downside.
The Biggest Risk of Selling First: Where Will You Go?
The obvious concern with selling first is that you now have a deadline.
If your home closes in 60 or 90 days and you haven't found your next property, you may need to make temporary arrangements.
That could include:
Negotiating a longer closing
Renting temporarily
Staying with family
Putting belongings into storage
Purchasing something that isn't quite what you originally wanted
This is why selling first isn't automatically the best strategy.
If you're looking for something relatively rare — perhaps a specific neighbourhood, school district, bungalow, ravine property, large lot or particular condo building — buying first may make more sense.
When Does Buying Your Next Home First Make Sense?
Buying first can be a good strategy when finding the right property is more difficult than selling your existing one.
You're Looking for a Specific Type of Home
Imagine you live in a fairly marketable detached home in Burlington but want to downsize to a bungalow in a very specific neighbourhood.
Good bungalows in your preferred area may not come up frequently.
Selling your existing home first could put you under pressure to buy whatever happens to be available before your closing date.
Buying first allows you to wait for the right opportunity.
You're Financially Comfortable Carrying Both Properties
Some homeowners have enough available equity, financing or savings that temporarily owning two properties isn't a major concern.
Before relying on this strategy, however, it's important to speak with your mortgage professional.
You should understand:
How you'll fund the deposit on the new home
Whether you qualify to carry both properties
How the down payment will be funded
Whether bridge financing could be available
How long you're comfortable carrying two properties if your home doesn't sell immediately
Knowing these answers before making an offer is important.
What Is Bridge Financing?
Bridge financing can sometimes help homeowners who have sold their existing home but are taking possession of their new home before the sale closes.
For example, your existing Burlington home might close on June 30 while your new Oakville home closes June 20. Bridge financing may allow you to access the equity needed to complete the new purchase during that gap.
However, bridge financing isn't simply a solution for buying a house and hoping your existing property sells later.
Lenders have their own qualification requirements, so your mortgage broker or lender should confirm what's available in your particular situation.
Market Conditions Matter
The decision to buy or sell first shouldn't be made without considering what is happening on both sides of your move.
You may technically be buying and selling in the same real estate market, but the conditions affecting each property can be very different.
For example, someone could be selling a detached family home in Burlington and buying a luxury condo in downtown Burlington or Oakville. Those two segments may have very different inventory levels, buyer demand and average selling times.
The same applies if you're selling in Hamilton and moving to Burlington, downsizing from a detached home to a condo, or moving from an entry-level townhouse into a larger detached property.
The question isn't simply, "Is it a buyer's market or seller's market?"
A better question is:
How difficult will my home be to sell, and how difficult will my next home be to find?
That's the comparison that should drive your strategy.
What About Making an Offer Conditional on Selling Your Home?
Another possibility is making an offer on a new property conditional on the sale of your existing home.
This can reduce some financial risk, but sellers may be reluctant to accept this type of condition, particularly if they have other interested buyers.
The terms can also be more complicated than a standard purchase, so it's important to understand exactly how the condition works before relying on it.
In some situations it can be useful. In others, selling first or arranging your financing so you can buy first may produce a cleaner transaction.
How We Help Clients Decide
At The Maguire Team, we don't automatically recommend buying first or selling first.
We start by looking at the entire move. Some of the most important considerations are:
The realistic market value and saleability of your existing home
Current competing inventory and buyer demand
The type of property you're trying to purchase and how often suitable homes become available
Your financing and closing-date flexibility
Your comfort level with financial and timing risk
Once those pieces are put together, the best sequence often becomes much easier to see.
A Practical Example
Suppose you're selling a family home in Oakville and downsizing to a Burlington condo.
If there are numerous condos that meet your needs but homes similar to yours are taking longer to sell, selling first may make sense.
Now reverse the situation.
Perhaps you own a highly marketable Burlington home but you're trying to buy a very specific rural property outside Hamilton. Only a handful of suitable properties come onto the market each year.
In that situation, buying first may be worth considering, provided you've worked through the financing and understand the risks.
Same question. Completely different answer.
So, Should You Buy or Sell First?
A useful rule of thumb is:
Consider selling first when financial certainty is your priority and you're confident you'll have reasonable options for your next home.
Consider buying first when finding the right next property is the bigger challenge and you're financially comfortable managing the risk of selling afterward.
Before doing either, have a realistic idea of what your existing property is worth and what you're likely to encounter when you start shopping.
If you're considering a move in Burlington, Oakville, Hamilton or the surrounding area, The Maguire Team can help you look at both sides of the equation before you commit to either one. We can assess your current home, look at what's available in the areas you're considering and help you build a moving strategy that makes sense for your particular situation.
Sometimes a conversation about the numbers, timing and available inventory can answer the "buy or sell first?" question before you've even put a sign on the lawn.
