Should I buy first or sell first?

This is one of the most stressful questions homeowners face when making a move, and there is no universal answer. There is, however, a set of facts that makes the decision far less nerve-wracking.

Selling first

Potential advantages:

You know your actual selling price
You know exactly how much equity you have to work with
Less risk of carrying two properties

The trade-off: if you have not found your next home by closing, you may need temporary accommodation and a second move.

Buying first

Potential advantages:

More time to find the right home
A simpler move, straight from one property to the other

Potential challenges:

Financing two properties at once
Uncertainty about what your current home will sell for
Carrying costs while both are held
A possible need for bridge financing

Start with your equity Estimate your home's value and what you would keep after selling costs — the two numbers this decision rests on. Estimate my selling proceeds

The market changes the answer

Where homes sell quickly but the right purchase is hard to find, buying first is more attractive. In a slower selling market, taking on a second property before yours is sold introduces real risk. The same person can reasonably answer this question differently in two different years.

What to establish before you decide

An estimated value for your current home
Your mortgage balance
Your expected net proceeds
Your borrowing capacity, confirmed with a lender
Market conditions on both the selling and the buying side
Whether bridge financing is available to you, and what it costs
How flexible your closing dates can be

This is the decision where planning the purchase and the sale together, rather than in sequence, makes the biggest difference.

More seller guides

What is my home worth? — How home valuations work, why two estimates can disagree, and which factors move your value most.
How can I increase my home's value before selling? — How to find high-return improvements, quick wins, and the projects that are not worth doing before you sell.
Should I renovate before selling my home? — Kitchen, bathroom, paint, or nothing at all? How to weigh renovation cost against the selling benefit.
How much does it cost to sell a home in Canada? — Commission, legal costs, mortgage expenses, moving and the other costs that decide what you actually keep.

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Stuart Hall, REALTOR® · Licence #LIC-00651009 · Century 21 Bravo

Data from MLS® System. Deemed reliable but not guaranteed accurate by CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules, and the REALTOR® Code.