Should You Buy or Sell Your Home First?

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7 years ago

Should You Buy or Sell Your Home First? A Complete Guide for London, Ontario Homeowners

Buying or Selling a Home? Which Should Come First?

One of the most common questions we hear at Elevate Real Estate Group is:

“Should I buy my next home first, or should I sell my current home first?”

The answer isn’t always straightforward.

Every homeowner has different financial circumstances, timelines, and risk tolerance. What works perfectly for one family may not be the best strategy for another.

If you’re planning to move to London, Ontario or the surrounding communities, understanding the advantages and disadvantages of each option can help you make a confident, informed decision.

Should You Buy or Sell Your Home First?

Why This Decision Matters

Buying and selling a home are often the two largest financial transactions people make.

Getting the order wrong can create unnecessary stress, while the right strategy can make your move significantly easier.

Before making any decisions, it’s worth considering:

Current market conditions
Your financial situation
Your timeline
Available inventory
Your tolerance for risk

There isn’t a universal answer—but there is usually a solution that’s right for your situation.

Questions to Ask Yourself Before Deciding

Do You Need to Move Quickly?

If you’re relocating for work, accommodating a growing family, or working around school schedules, your timeline may dictate your decision.

If you have flexibility, you may be able to wait for the right opportunity rather than rushing into either transaction.

How Competitive Is the Current Market?

Market conditions play a huge role.

In a strong seller’s market, finding your next home can sometimes be more challenging than selling your current one.

In a buyer’s market, you may have more choice but need to prepare for your home taking longer to sell.

Understanding today’s local market is one of the biggest advantages of working with an experienced REALTOR®.

Can You Financially Carry Two Homes?

Buying before selling sometimes requires bridge financing or temporarily carrying two mortgages.

Ask yourself:

Can you comfortably qualify?
Do you have funds for a deposit?
Could you manage unexpected delays?

Your lender or mortgage broker can help determine your options before you begin shopping.

How Comfortable Are You With Risk?

Some homeowners are comfortable purchasing before selling.

Others prefer the certainty of knowing exactly how much they’ve sold their current home for before making another purchase.

Neither approach is wrong.

It’s simply about choosing the strategy that allows you to sleep at night.

Would You Consider Renting Temporarily?

Many homeowners overlook this option.

Selling first and renting for several months can ease much of the pressure of finding your next home.

While moving twice isn’t ideal, it can provide flexibility and stronger negotiating power.

Option 1: Buy First, Then Sell

For some homeowners, purchasing first provides peace of mind.

You know exactly where you’re moving before listing your current property.

Advantages of Buying First

You Can Take Your Time

Rather than rushing into the first available property, you can wait until you find a home that truly fits your family’s needs.

Less Pressure

Once you’ve secured your next home, you can focus on preparing your current property for sale without worrying about finding somewhere to live.

Better Home Preparation

You’ll have more time to:

Declutter
Paint
Complete repairs
Stage your home
Maximize your sale price

Potential Drawbacks

Bridge Financing

Depending on closing dates, you may need temporary financing.

Two Mortgage Payments

If your home takes longer to sell than expected, you could briefly own two properties.

Market Changes

Although uncommon, market changes could affect the value or timing of your current home’s sale.

Option 2: Sell First, Then Buy

Many homeowners choose to sell first because it provides financial certainty.

Once your home sells, you’ll know exactly how much money is available for your next purchase.

Advantages of Selling First

Know Your Budget

There’s no guessing.

You know your sale price, closing costs, and available down payment.

Stronger Negotiating Position

Without the pressure of needing to sell, you can often negotiate more confidently when buying.

Less Financial Risk

You won’t need to worry about carrying two mortgages or arranging bridge financing.

Potential Drawbacks

Pressure to Find a Home

Once your home has sold, you’ll have a deadline.

While this motivates many buyers, it can sometimes create unnecessary stress.

Temporary Accommodation

Occasionally, homeowners choose to rent or stay with family while searching for their next property.

Although not ideal, this flexibility often leads to a better long-term purchase.

Can You Buy and Sell at the Same Time?

Ideally, yes.

Many buyers hope their purchase and sale close on the same day.

While this does happen, it isn’t always realistic.

Closing dates are often negotiated separately, meaning there can be a gap of several days—or even several weeks—between transactions.

An experienced REALTOR® can help coordinate timelines and negotiate dates that work for everyone involved.

What Happens If Your Dates Don’t Line Up?

This is where planning becomes essential.

Possible solutions include:

Bridge financing
Flexible closing dates
Extended possession
Early possession agreements
Short-term rentals

Every situation is unique, which is why having professional guidance can save both money and stress.

Our Recommendation

Rather than asking:

“Should I buy first or sell first?”

Ask:

“Which strategy best fits my financial situation, family, and today’s market?”

The answer may be different today than it would have been six months ago.

That’s why personalized advice matters.

How Elevate Real Estate Group Helps

There isn’t a one-size-fits-all solution.

Before recommending a strategy, we sit down with every client to understand:

Your goals
Your timeline
Your finances
Your family’s needs
Current London market conditions

From there, we create a plan that helps minimize stress while maximizing flexibility.

Whether you’re upsizing, downsizing, relocating, or purchasing your first home, we’ll help you understand your options before making any major decisions.

Frequently Asked Questions

Is it better to buy or sell first in London, Ontario?

It depends on current market conditions, your finances, and your comfort with risk. Both approaches have advantages, and the best strategy varies for each homeowner.

Can I make an offer before selling my home?

Yes. Many buyers purchase first, particularly if they have strong financing or access to bridge financing.

What is bridge financing?

Bridge financing is a short-term loan that helps cover the period between purchasing your new home and receiving the proceeds from the sale of your current home.

Should I make my offer conditional on selling my home?

Sometimes. In a balanced or buyer’s market, a Sale of Property condition can protect you financially. In a highly competitive seller’s market, however, these conditions may make your offer less attractive. Your REALTOR® can advise on whether it’s appropriate based on current market conditions.

Ready to Make Your Move?

Whether you’re buying first, selling first, or simply exploring your options, we’re happy to help.

At Elevate Real Estate Group, we believe informed clients make better decisions. We’ll walk you through the advantages of each approach, explain today’s market, and develop a strategy that’s tailored specifically to you.

If you’re thinking about making a move in London, St. Thomas, Middlesex County, or Southwestern Ontario, we’d love to start the conversation.

Contact the Elevate Real Estate Group today, and let’s build a plan that works for you.