Buy First or Sell First in Ontario
Deciding whether to buy first or sell first is one of the most important questions homeowners face. The right answer depends on market conditions, financing flexibility, risk tolerance, and timing.
Below is a clear breakdown of both options and how market conditions influence the decision.
Option 1: Buying first
Buying before selling can provide flexibility and peace of mind, particularly when finding the right next home may take time.
Potential advantages
• Avoiding rushed purchase decisions
• More time to secure the right property
• Reduced risk of temporary housing
Key considerations
• Qualifying to carry two properties temporarily
• Potential need for bridge financing
• Exposure to market changes before selling
Buying first often makes sense when finding a replacement home is the more uncertain part of the transaction.
Option 2: Selling first
Selling before buying provides clarity around budget and reduces financial exposure.
Potential advantages
• Knowing exactly how much equity is available
• Reduced carrying risk
• No bridge financing required
Key considerations
• Possible time pressure to buy
• Risk of temporary housing
• Need to carefully align closing dates
Selling first is often appropriate when pricing or timing on the sale side feels less predictable.
How market conditions influence the decision
In a buyer’s market, buying may offer flexibility due to greater choice and negotiating power, while selling can take longer or require pricing adjustments.
In a seller’s market, selling may be more predictable, while buying can involve competition, limited inventory, and tighter decision windows.
In many cases, addressing the more uncertain side of the transaction first can reduce stress and improve outcomes.
Final thoughts
There is no single right approach. The best strategy reflects where uncertainty exists, your financial position, and your comfort with risk.
If you’re planning to buy, see our Buyers page.
If you’re considering selling, visit our Sellers page
