Buy First? Or Sell First?

The Classic Dilemma – Buy or Sell First?

Maybe your family is growing or maybe you are ‘right’ sizing; whatever the motivation is for your upcoming move, deciding whether to buy your new home or sell your existing one first is an important decision to make as one of the first steps in your home buying journey. While there is no one size fits all answer, your Realtor will be able to assist you in determining the right approach for you and your family.

Buy First

Buying first gives you the luxury of time. With no upcoming closing date on your existing property, you have the opportunity to move at your own pace finding “the one”. An unsuccessful offer can be much more palatable when you know that there will be another property that is just as perfect, if not more so, down the road.

Once you have an accepted offer on your new home, it’s time to put your house on the market. In a sellers’ market (where there are more people looking to purchase than there are looking to sell), this is unlikely to cause any issues. However, if you are in a buyers’ market (where there are more people looking to sell than there are looking to purchase), you could end up on a scenario where you have two homes (and two mortgages) for a period of time.

There is always the option to make the sale of your existing home a condition on the offer to purchase your new home (meaning if you cannot sell in a specified time-frame your offer to purchase would expire), however in the event there are multiple offers, the sellers might see this as unfavorable.

Sell First

One of the benefits of selling your home first is knowing exactly what you are working with and what price you can pay. This can help narrow your search considerably and put you in position to make an offer on your new home with fewer conditions making your offer more appealing to the seller.

While you won’t run the risk of having two mortgages to deal with, you do run the risk of having no home to move into if you can’t find “the one” before the closing on the sale of your home. The last thing you want is to feel pressured to purchase a home that isn’t for you or pay too much for it because you feel short on time.

Have a Plan

Regardless of which you choose, to buy first or to sell first, having a plan in place can help put your mind at ease and make your journey that much more enjoyable!

If you choose to buy first, consider bridge financing to help you cover the costs of your new home until your existing home sells.

If you choose to sell first, consider discussing staying with family or friends or researching short-term rentals to ensure you will have somewhere to go if you don’t find “the one” before the closing date on your exiting home.

Most importantly, talk to your Realtor. Knowing the market conditions and understanding your unique circumstances, your realtor can play a pivotal role in your decision making.