Should You Sell Your Home Before You Buy Your New One?

Should you sell your current home first before you buy a new one? 
As awesome as it would be to find a home first and sell after it could end up costing you money. There's a couple issues with buying backwards. First, when negotiating an offer on the new home, you have to disclose that you still have a home to sell and you may want to put in a condition of "subject to the sale of the home." It puts you in a bad position to negotiate and you may be caught paying two mortgages or losing your deposit. 


Secondly, you have put major pressure on selling your home. The seller of the home you are buying will demand a 24 hour clause, which will definitely come into play because if you like the home, someone else will (you may lose the home of your dreams). If this does happen, you will still be under pressure to sell fast, which makes a difference in how much you sell the home for compared to being patient.


The best way is to sell your home for maximum value is to have a possession date of 90 days to allow plenty of time to find the right home for you. This also puts you in the position to negotiate the best deal. 


What if you find your dream home before you sell?


Talk to your mortgage lender about bridge financing. This is when your lender (the bank) is confident your current home will sell quickly and they agree to lend you the down payment for your new home. 




Alyesha Neufeld 

Alyesha Neufeld

Alyesha Neufeld

CENTURY 21 Platinum Realty
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