To get precise data, consult with a local real estate expert who can provide insights into current trends, such as average DOM or inventory levels in your neighbourhood.

Pros and Cons of Each Approach

Both buying first and selling first have advantages and challenges. Below is a detailed comparison to help you decide:

Buying First

Pros:

• Secure your new home without rushing, especially in competitive markets.

• Avoid temporary housing arrangements, ensuring a seamless move.

• Take time to find a property that meets all your needs.

Cons:

• Risk of carrying two mortgages if your current home doesn’t sell quickly.

• Potential for financial strain if market conditions shift.

• May need creative financing solutions, like bridge loans.

Selling First

Pros:

• Clear financial picture with proceeds from the sale to fund your purchase.

• Reduced risk of overextending financially.

• Stronger negotiating position as a buyer with no contingency.

Cons:

• Pressure to find a new home quickly, possibly leading to compromises.

• Potential need for temporary housing if you can’t find a home in time.

• Risk of rising prices in a hot market, reducing purchasing power.

Creative Solutions to Bridge the Gap

If you’re torn between buying and selling first, several creative solutions can ease the transition and reduce risk. Here are two popular options:

1. Bridge Financing
   A bridge loan is a short-term loan that covers the gap between purchasing a new home and selling your current one. It’s ideal for buyers who need immediate funds for a down payment but expect to repay the loan once their home sells.

   • Pros: It provides liquidity and allows you to buy without selling first.

   • Cons: Higher interest rates and fees; requires strong financial qualifications.

   • Tip: Work with a lender familiar with Surrey and Burnaby markets to secure favourable terms.

2. Rent-Back Agreements
   A rent-back agreement allows you to sell your home but remain in it as a tenant for a set period while you finalize your new purchase. This is negotiated with the buyer of your home.

   • Pros: Eliminates the need for temporary housing and provides flexibility.

   • Cons: It depends on the buyer’s willingness and may involve rental costs.

   • Tip: Ensure the agreement is clearly outlined in the sale contract to avoid disputes.

3. Contingency Clauses
   Include a sale contingency in your purchase offer, making the deal dependent on selling your current home. While not always accepted in competitive markets, it can provide peace of mind.

   • Pros: Protects you from owning two homes if your sale falls through.

   • Cons: May weaken your offer in a seller’s market.

Steps to Make Your Decision

Follow these steps to create a personalized strategy:

1. Consult a Financial Advisor or Lender
   Review your finances to determine if you can afford to buy before selling or if selling first is safer. Get pre-approved for a mortgage to understand your budget.

2. Analyze Local Market Trends
   Work with a real estate agent to assess inventory, sales pace, and pricing trends in Surrey and Burnaby. This will help you gauge the risks of each approach.

3. Explore Financing Options
   Discuss bridge loans, rent-back agreements, or other solutions with your agent and lender to find the best fit.

4. Develop a Timeline
   Create a realistic timeline for buying, selling, and moving, factoring in market conditions and personal needs.

5. Have a Backup Plan
   Prepare for unexpected delays, such as a slower sale or difficulty finding a new home. Options include short-term rentals or staying with family.

Final Thoughts

There’s no one-size-fits-all answer to whether you should buy or sell first. Your decision depends on your financial situation, market conditions, and personal goals. As your real estate guide in Surrey and Burnaby, I can help you assess your unique circumstances, analyze local market data, and develop a strategy that protects your investment and supports your lifestyle. Whether you’re navigating a hot seller’s market or a slower buyer’s market, a tailored plan can make all the difference.

Need help creating a custom plan? Contact me today to discuss your options and start your real estate journey with confidence.