FROM THE MANAGER’S DESK

“Should we buy our next home before selling the one we own, or should we sell first?”

It is one of the most common questions homeowners ask when preparing to move and one of the few questions in real estate for which the most honest answer is: it depends.

Buying first offers one important comfort: you know where you are going. For homeowners worried about selling and then being unable to find something suitable, that reassurance can be very appealing.

However, unless they are financially able to own both properties, their offer will normally need to be conditional on the sale of their current home. That condition protects the buyers from becoming committed to two properties, but it can also make their purchase less secure.

If the seller receives another acceptable offer without a sale-of-property condition, what people sometimes call a “straight offer”, the first buyers may be given a limited period to remove the condition of the sale of their current property. They must then decide whether they are financially prepared to proceed with the purchase before selling their existing home.

If they cannot safely remove the condition, they may lose the property to the second buyers. That experience can be heartbreaking. They believed they had found their next home, began imagining themselves living there and then lost it because another buyer was in a stronger position.

Also, some sellers may be reluctant to accept an offer that is conditional on the sale of the purchaser’s property. Even when they are prepared to consider it, they may be less willing to negotiate favorable terms because of the additional uncertainty the condition creates

What If You Sell and Cannot Find Another Home?

Selling first eliminates the weakness created by a sale-of-property condition. Once the existing home is sold, the homeowners know how much money they will have available, understand their purchasing budget and are in a stronger position to make an offer on their next property.

However, selling first creates a different concern: what if they cannot find a suitable home before they are required to leave the one they have?

I sometimes call this the fear of becoming “homeless.” It is often the real reason homeowners hesitate to sell first, and it is completely understandable. No one wants to sell a comfortable home only to feel pressured into purchasing a property that does not meet their needs.

This is where planning and the responsibility of the REALTOR® become especially important. I train our professionals to reassure their clients that they will not become homeless on our watch. Our responsibility does not end when we place a sold sign on their property. We must help them plan the entire transition from the home they have to the home they need.

Before their property is listed, the homeowners should already be studying the current inventory with their REALTOR®. They should understand what is available, where suitable properties are located, what those properties cost and how frequently new opportunities are appearing. By the time an offer is received on their home, they should already be very familiar with their options.

Receiving an offer does not obligate a seller to accept it. If nothing suitable is available, the seller can reject the offer or negotiate terms that provide more flexibility. We can ask the purchasers for a later closing date or additional time for the seller to locate a suitable property. Depending on the circumstances, other carefully drafted contractual options may also be considered before an agreement is finalized.

There is no guarantee that every purchaser will agree to the requested flexibility. However, the seller remains in control until an offer is accepted. If the timing, price or terms do not provide a safe and reasonable path forward, the seller is not obligated to proceed.

Selling first should therefore not be viewed as taking a blind leap. With knowledge of the available inventory, a realistic understanding of value, proper financing advice and carefully negotiated terms, it can become a controlled and well-planned transition.

So, Which Should You Do First?

Buying first may provide emotional certainty because you know where you are going, but it can create greater financial and contractual risk. Selling first provides financial certainty and strengthens your position as a buyer, but it requires confidence that a suitable next home can be found.

There is no universal answer. The right strategy depends on several factors:

• Your ability to finance and temporarily carry two properties
• The expected selling time and value of your existing home
• The number of suitable properties currently available
• The competitiveness of the market in which you hope to buy
• Your preferred closing date and flexibility
• Your personal tolerance for financial and timing risks

These questions should be discussed before you begin viewing properties or place your current home on the market. Your REALTOR® and lender can help you understand the risks, examine the available options and develop a plan suited to your circumstances.

The objective is not simply to complete two separate transactions. It is to coordinate one successful move.