August 21, 2026

Sell or buy first: what strategy should you adopt?

Are you planning to move and wondering whether you should buy or sell your home first? This is a question many homeowners ask themselves, and there’s no single right answer.

Your financial situation, the real estate market, and your risk tolerance will influence your decision. You’ll also need to consider the impact on your bargaining power and your desired moving date.

Family in house, ready to move

Selling your current home or buying a new one first has both pros and cons. By understanding the factors to consider, you’ll be able to determine the strategy that’s right for you.

Selling before buying or buying before selling: understanding both scenarios

Both approaches can work, but they come with different risks and restrictions. Before deciding, compare the two scenarios to choose the one that best fits your situation.

Selling before buying or buying before selling
Criterion	Sell before buying	Buy before selling
Financial risk	Low	High
Available budget	Defined	Uncertain
Ability to take out two mortgages	No	Yes
Need for temporary housing	Possible	Rarely necessary
Flexibility in the search	More limited	Greater

	Tips and tricks Before deciding on a strategy, assess your borrowing capacity. This will help you determine the amount and terms available to you, while making it easier to obtain or renew a mortgage.

Buying before selling

Buying before selling your home can be advantageous if you want to take your time finding your next property and avoid a temporary move. This strategy also allows you to quickly make an offer on a home you like, especially if you have the option to transfer your mortgage.

However, this requires careful planning. Until your current home is sold, you’ll need to meet your financial obligations and, in some cases, temporarily pay two mortgages.

Benefits and risks of buying first

Buying a home before selling your current one offers more flexibility, but carries a higher financial risk.

Key benefits

Having time to find the right property: You don’t have to close on a deal as quickly as possible because your home has already been sold.
Seizing an opportunity quickly: You can make an offer on a property without waiting for your home to sell.
Easier move planning: Knowing your next address makes it easier to coordinate closing and moving dates.

Key risks

Temporarily paying two mortgages: If your current home isn’t sold by the time you make your purchase, you’ll have to pay two mortgages, in addition to taxes, insurance, and other fees. Your debt-to-income ratio will also be higher.
Selling for less or later than expected: If your property doesn’t sell, you’ll need to adjust your strategy or accept a lower selling price.
Seeking additional financing: You may need a new loan to cover the period between the two transactions.

Financial implications of buying before selling

Before buying a home, you need to determine whether you can finance this new home without immediately relying on the proceeds from your sale.

Your financial institution will assess your income, debts, down payment, and the value of your current home. It will also assess your ability to temporarily meet your obligations related to both properties in order to offer you the most favourable mortgage, if you qualify.

What is a bridge loan?

A bridge loan, also known as bridge financing, is a temporary form of financing that allows you to purchase a new property before receiving the proceeds from the sale of your current home.

In this case, you can obtain temporary cash by using the equity in your former home as collateral. Interest rates are generally higher than those of a regular mortgage.

The terms, costs, and structure of a bridge loan vary depending on your situation and the financial institution’s requirements. Be sure to review your options before committing.

Can you take out two mortgages at the same time?

It is possible to hold two mortgages temporarily, but approval depends on your circumstances and your financial institution’s criteria.

Before submitting an offer, check how much you can borrow while taking into account the payments on both properties. Applying for a mortgage pre-approval will help you establish a realistic budget, while ensuring you don’t end up with too little financial flexibility in case there’s a delay in selling your home.

How does a conditional offer to purchase work?

If you’re buying before you sell, you can make a promise to purchase that’s conditional on the sale of your current property.

In this scenario, the purchase of the new property depends on the sale of your home. The terms of the condition—including the timeframe allowed for the sale—must be specified in the offer to purchase.

This strategy protects you financially by allowing you to cancel the purchase if the condition specified in the contract is not met. It can be useful if your ability to buy depends on the sale of your property.

On the other hand, a conditional offer may be less attractive to the seller, especially if competition is fierce and there are several interested buyers.

What is the 72-hour clause?

The 72-hour clause, also known as the right of first refusal, is an option included in a conditional offer to purchase. It allows the seller to consider other offers while your condition remains in effect.

If the seller receives another offer they wish to accept, you will then have 72 hours to waive your condition and proceed with the transaction or withdraw, according to the agreed-upon terms.

	Tips and tricks Before making an offer, run the numbers based on different scenarios. What will happen if your house sells for less than expected or stays on the market longer? This will help you determine how much flexibility you have and choose a strategy that fits your situation.

Selling before buying

Selling first and then buying is the safest option for homeowners who want to minimize financial risk. This allows you to know the exact amount of the sale and set a budget for your next home without needing a bridge loan.

This strategy requires careful planning. After the sale, you must meet the closing date agreed upon with the buyer. If you haven’t yet found your next home, make arrangements for temporary housing.

Benefits and risks of selling first

Selling before buying provides greater clarity on your financial situation but limits your flexibility when planning a move.

Key benefits

Knowing your buying budget: The net proceeds from the sale help you determine how much you can spend on your next home.
Reducing financial risk: You don’t have to buy a new home until you’ve sold your current one, so you avoid having two mortgages at the same time.

Key risks

Finding a new home within a limited timeframe: You’ll need to move out of your current home by the scheduled date, which means you’ll have to quickly put your home on the market.
Arranging temporary housing: Depending on the timing of both transactions, you may need to rent an apartment or find another temporary living arrangement.
Making compromises in your search: A tight deadline may prompt you to broaden your criteria or accept a property that doesn’t quite meet your needs.
Paying transition costs: Temporary housing, storing your belongings, or two moves can increase the expenses associated with your project.

Woman with dogs looking for a house

Financial implications of selling before buying

Selling first reduces financial uncertainty. However, the sale price of your property does not necessarily correspond to the amount available for your next purchase.

How does the sale proceeds affect your purchase budget?

To set your budget, calculate the net proceeds from the sale—that is, the amount you’ll have left after paying off your mortgage and covering transaction costs. For example, if your property sells for $500,000, you might have $350,000 available for your next down payment.

How do you coordinate the sale and purchase of a property?

Timing is often the biggest challenge when selling before buying. Ideally, the dates for signing the contract, taking possession, and moving should follow one another without an overly long transition period.

You can start looking for a property before selling your own, which will help you become more familiar with what’s available and find one that meets your criteria.

In some cases, you can also negotiate the closing date with the buyer. This flexibility can give you more time to finalize your next purchase.

	Tips and tricks During negotiations, you can ask the buyers to rent the house back to you for a few months. If they agree, you’ll avoid having to move twice.

Does the real estate market influence your strategy?

The real estate market in Quebec can influence the decision of whether to buy or sell first. The number of available properties, the average time to sell, and the level of competition can affect your flexibility.

Review real estate statistics for your area to better understand trends. Pay particular attention to the number of properties on the market, the time it takes to sell, and the prices of comparable homes. This data will help you determine whether your property is likely to sell quickly and how much competition you’ll face from other sellers.

Recommended strategy based on the state of the real estate market in Quebec
Market conditions	A commonly used strategy
Seller’s market	Buy before selling
Buyer’s market	Sell before buying
Balanced market	Depends on the buyer’s goals

Seller’s market

In a seller’s market, demand is generally higher and properties sell quickly. Buying before selling offers an advantage: you’ve already found your next property and you avoid missing out on an opportunity in a market with many buyers.

Conversely, making an offer conditional on the sale of your property may make it less attractive. A seller with multiple offers might prefer a buyer who isn’t dependent on the sale of their own property to close the deal.

Buyer’s market

In a buyer’s market, there may be more properties available, and they tend to stay on the market longer. Buyers have more choices, so selling before buying becomes an attractive option.

In this context, it’s easier to negotiate a conditional offer for the sale of your property, as competition among buyers is less intense.

Balanced market

In a balanced market, there’s no single strategy. Your financial situation, your priorities, how easily you can sell your home, and the availability of properties that interest you will carry more weight in the decision.

How to choose the best strategy?

There is no one-size-fits-all strategy for determining whether it’s better to sell or buy your property first. The best approach depends on your financial situation, your priorities, and your risk tolerance.

A real estate broker can help you compare different scenarios, understand the market, and plan the steps of your transaction. Whether you want to buy with a broker or sell with a broker, working with a professional will help you make an informed decision and coordinate the steps of your project.

Questions to ask yourself before making a decision

By answering these questions and discussing your plan with various professionals, you’ll be able to determine whether selling before buying or buying before selling is the best option.

Can you afford to own two properties? If so, you may want to consider buying before selling. If not, sell first to reduce financial risk.
Do you need to use the proceeds from the sale to finance your purchase? If your down payment or budget depends on that amount, selling before buying may be the safer option. Prepare the documents needed to buy a property so you can act quickly if an opportunity arises.
Is your property likely to sell quickly, given the market in your area? A short selling period can make it easier to buy before selling. If your property is likely to stay on the market longer, selling first gives you better control over your financial situation.
Are the properties you’re looking for scarce? When opportunities are few and far between or sales close quickly, buying before selling offers more flexibility to find the right property.
Can you handle a transition period? If you’re comfortable with the idea of renting temporarily, storing your belongings, or moving twice, selling before buying is an option worth considering.

Is it better to buy or sell your home first?

So, should you buy or sell your home first? The answer varies from one situation to another. The best choice depends on your circumstances, your goals, your risk tolerance, and real estate market conditions.

Selling before buying is generally the most financially prudent option. It lets you know exactly how much you have available for your purchase and helps you avoid having to cover the costs of two properties.

Buying before selling, however, can be a good option if your financial situation allows you to temporarily pay two mortgages or if the properties you’re looking for are scarce and in high demand. This gives you more flexibility to find your next home without having to rush.

Ready to start your search? Explore properties for sale on Centris.ca.

Frequently asked questions

1. Can I buy a house without having sold my current home?

Yes, you can buy a house before selling your current home. This strategy can offer more flexibility in finding the right home, but generally involves a higher financial risk. Depending on your situation, you may have to temporarily cover the costs of two properties or use a financing solution, such as a bridge loan. Before making an offer, be sure to assess your financial capacity with your bank or mortgage broker.

2. Can I take out two mortgages at the same time?

Yes, it’s possible to have two mortgages at the same time, provided your situation allows it. In this case, your financial institution will assess your income, debts, expenses, and borrowing capacity. A mortgage pre-approval can help you determine how much you could borrow before purchasing a new property.

3. Can I make an offer to purchase that is conditional on the sale of my current home?

Yes, an offer to purchase can be conditional on the sale of your current property. This condition can protect you from the risk of having to buy a new home before you’ve sold your own. However, an offer with this condition may be less attractive to a seller, especially when there are multiple competing buyers. The terms of the condition—including timeframes and remedies—must be clearly set out in the offer to purchase.

The information provided in this article is for informational purposes only and does not constitute financial, legal, professional or other advice or opinions. As such, we make no warranties, express or implied, as to the accuracy, reliability, integrity or exhaustiveness of this information, which you use at your own risk. In no event shall Centris be held liable for actions made on the basis of the information contained in this article or for any damage or loss, direct or indirect, that may result from, or in connection with, the use thereof. We recommended consulting with industry professionals for personalized advice before making any decisions.