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Why would someone buy before their home sells?
“Buyers who wish to secure a home before selling their current one can sometimes be particular about what they’re
looking for and are focused on finding the right next home without feeling like they have to compromise due to time
constraints,” explains McCullough. “They may feel more secure in knowing they won’t end up without a place to live
between transactions (if they can’t find their next property before the time is up on their pending sale) because it’s
already lined up.”

She explained the strategy of buying first can be beneficial in a sellers market because homeowners can feel more
confident their current property will sell quickly after they put it on the market. This strategy can also work well in a
buyer’s market, when there’s a “Subject to Sale” condition as part of the buyer’s offer.

What are the things you need to consider when making this decision?
Market conditions

“Market conditions are a very important consideration
when making this decision—and something your
REALTOR® will be able to educate you on,” says
McCullough.

Buying first means you can really focus on finding
the right next home without the constraint of time.
In a buyer’s market, McCullough says there tends to
be a higher inventory of houses on the market resulting in more choice for buyers, and more days on the market
before homes sell. This means there’s a greater risk your home won’t sell quickly, or at the price you anticipated—and
potentially need—for the purchase of your new home to go through.

“The risk here is ending up owning two houses, which isn’t something most homeowners can afford. Although a lot
of it comes down to personality type, and a person’s risk tolerance to the different scenarios, market conditions are
the number one consideration when deciding to buy or sell first. The market can shift quickly, so seeking the advice
of your REALTOR® and learning about the market in your specific community, and the community that you will be
buying in is important.”
Mortgages

“When it comes to funding the purchase of your new home, knowing the exact sale price of your current property
is helpful. In a changing market, what you end up selling your current home for could be significantly less than its
market evaluation even one month prior. This can affect your mortgage qualification, and leave you with out-of-
pocket expenses at closing to help cover the difference in the purchase price versus mortgage amount available to
you,” says McCullough.
While bridge financing allows you to temporarily carry a mortgage on two properties, McCullough says it isn’t always
an option.

“Connecting with a trusted mortgage professional before you begin your housing search is an important first step
that any REALTOR® would advise.”

Conditions on your offer

Choosing to buy first means your REALTOR® will likely recommend having a “Subject to Sale” condition as part of
your offer. This means the deal won’t be firm until you sell your current property—or otherwise remove the Subject.
However, McCullough explains these can also create more risk in a seller’s market.

McCullough notes offers with a ‘Subject to Sale’ are more commonly accepted. Within those offers, there’s usually

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