Buying Before Selling: When It Makes Sense

One of the most common questions homeowners ask is whether they should sell their home before buying the next one. Many assume that selling first is the best path, but that is not always the case.

Last year, I worked with clients who were relocating from the city to a detached home in a fast-moving neighborhood. Their situation is a great example of how buying first can sometimes create the smoothest transition.

The Challenge: A Fast-Moving Neighborhood

When we first discussed their plans, the market in the area they wanted to buy was extremely competitive. Homes were often selling within hours of being listed. They were understandably unsure how to coordinate selling their townhouse in the city while still being able to act quickly enough to secure a property in their target neighborhood.

We talked through two possible strategies.

The first option was selling their townhause first, negotiating a longer completion date, a subject-to-sale offer, or potentially get a bridge-loan once their home was sold firm. A subject-to-sale offer could have provided peace-of-mind that the fund will be availabe, but it was unlikley to get such an offer accepted in a highly competitive and fast paced neighborhood. A long completion could give them time to find and purchase a new home before the sale finalized.

The second option was buying the new home first and selling their current home afterward.

Understanding How They Accessed Their Equity

If they bought first, the next question was how to structure the financing without carrying two mortgages. Waiting for their townhouse to sell and relying on a bridge loan wasn’t a viable option, given how fast the neighborhood they wanted to buy in was moving. They didn’t have time to wait and risk the fast-moving neighborhood selling out before they could secure a property.

The solution was accessing the equity tied up in their current home. This was not bridge financing. Bridge loans typically apply when a home is already firm under contract and owners need short-term financing to complete a purchase before the sale closes.

Instead, I advised my clients to speak with their bank about accessing the equity in their current property before selling it. After reviewing their financial situation and assessing the value of their townhouse, the bank confirmed they could borrow against that equity. This allowed them to use funds from their existing home to purchase their new property.

Moving Quickly When the Right Home Appeared

Once financing was in place, the clients were ready to act immediately. When a home in their target neighborhood came on the market, they were able to submit a clean and competitive offer right away. Because their financing had already been arranged, they could move fast and secure the property without delays. This preparation made all the difference in a market where speed mattered. Their offer was accepted, and the purchase closed smoothly.

Preparing Their Townhome For Sale

With the purchase complete, my focus shifted to preparing their townhouse for the market. We arranged a staging consultation, completed professional photography and video, and prepared the full marketing package while the home was still furnished. Presenting a fully furnished home allowed buyers to see the property at its best.

A Pricing Lesson in a Shifting Market

When the property first came on the market, it was priced slightly higher than what the market ultimately supported. A few months earlier, the home had been assessed at a certain value by the bank. By the time we were ready to list, the market had shifted slightly, softening prices in that segment. As a result, showing activity during the first several weeks was limited.

After about 60 days on the market, we adjusted the pricing strategy and relaunched the listing at a level that better reflected current market conditions. The response was immediate. Within days, we received a strong offer, and the home sold successfully shortly afterward.

This is a good reminder that pricing is not only about the property itself, but also about the moment in the market when a home is listed.

Key Takeaways: Why Buying First Can Work

Buying before selling is not the right approach for every situation. However, when financing and timing are structured properly, it can offer several advantages:

- Buyers can move quickly when the right property appears
- There is less pressure to find a home within a tight timeline
- The move itself can be more organized and less stressful

Most importantly, this case study highlights the power of open communication and collaboration between client and agent. When homeowners are transparent about their goals and priorities, their agent can present all viable options, guide them through the trade-offs, and help them make the best decision for their situation.

Every move is different, but exploring all available options early in the process can make a significant difference.

Jessica Thiele is a Real Estate Advisor with Engel & Völkers Vancouver serving Maple Ridge, Pitt Meadows, and Coquitlam. As a Maple Ridge resident, she helps clients buy and sell homes with clear strategy and local market insight.