One of the biggest decisions homeowners face is whether to buy their next home before selling their current one or vice versa. The answer depends on your financial situation, the current market conditions, and your comfort with risk. Let’s explore both sides of the decision to help you feel confident moving forward.

Selling First: Pros and Cons

Pros

• Less Financial Risk: You know exactly how much equity you’re working with after the sale.
• Better Negotiating Power: Sellers are more likely to take your offer seriously if it's not subject to the sale of your home.

Cons

• Temporary Housing May Be Needed: If you don’t find a new place quickly, you may need to rent or stay with family.
• Rushed Buying Decision: You might feel pressure to purchase quickly to avoid a long gap between homes.

Buying First: Pros and Cons

Pros

• More Time to Find Your Dream Home: You can shop without the pressure of a ticking clock.
• Streamlined Transition: If timed right, you can move directly from one home to the next.

Cons

• Financial Strain: You might be carrying two mortgages temporarily.
• Risk of Not Selling Quickly: If the market slows, your current home may take longer to sell.

How to Decide What’s Right for You

Ask yourself:

• Can I qualify for a mortgage on a new home without selling mine first?
• How fast are homes selling in my area?
• Am I comfortable taking on more financial responsibility temporarily?

If the market is hot and homes are moving quickly, selling first might be a safer bet. If inventory is tight and you need time to find the right place, buying first (with a solid financial plan) could be the way to go.

Creative Solutions

• Bridge Financing: A short-term loan that helps cover the gap between buying and selling.
• Rent-Back Agreements: Negotiate to stay in your sold home temporarily while you finalize your new purchase.

Final Thoughts

There’s no one-size-fits-all answer to this question. As your real estate guide in Surrey and Burnaby, I can help assess your unique situation and develop a strategy that protects your investment and supports your goals.

Need help with a custom plan? Let's talk.