"Do I sell first or buy first?" It might be the most common question I hear from homeowners ready for a change. Maybe the family has outgrown a bungalow in Summerside, or you are ready to trade a country property for something smaller in Kensington. Either way, you have two moving parts and only one set of moving boxes. Here is how I help people think it through.
Option one: sell first
Selling first means you know exactly what you have to spend. You are not carrying two homes, and when you do write an offer, it is cleaner because it does not depend on selling your current place.
The trade-off is that you might need somewhere to live in between. Some sellers negotiate a longer closing date so they have more time to find the next home. Others rent short term or stay with family. On PEI, where inventory in a specific community can be limited, selling first can feel nerve-wracking if you have your heart set on one area.
Sell first if: you need the equity from your current home to buy, your budget is tight, or you prefer certainty over speed.
Option two: buy first
Buying first means you can wait for the right home without a deadline. If something perfect comes up, you can act.
The risk is owning two homes at once if your current place takes longer to sell than expected. That can mean two mortgages, two sets of property taxes and two heating bills. Some buyers use bridge financing, a short-term loan offered by many lenders, to cover the down payment on the new home until the old one sells. Whether that is available and sensible for you is a conversation for your lender.
Buy first if: you can comfortably carry both homes for a while, or you are confident your current home will sell quickly.
Option three: line them up
The most common approach is somewhere in the middle: making the two closings work together. There are a few tools for this:
- A sale of property condition. Your offer on the new home depends on selling your current one. It protects you, but sellers often view it as a weaker offer, especially in busy times.
- Matching closing dates. Try to close the sale first, then the purchase a few days later, so you are never without a home and never carrying two for long.
- Flexible possession. Sometimes buyers of your home will agree to a later possession date, or the seller of your new home will agree to an earlier one.
Start with a clear number
Whichever route you choose, it all starts with knowing what your current home is likely to sell for. That number sets your budget and helps you decide how much risk you can take. My free home evaluation is a good first step, and it comes with the recent sales behind the estimate.
Next, talk to your lender about how much you can carry, whether bridge financing is an option, and what pre-approval looks like with your current home still unsold.
Get your home ready before you shop
If you plan to list soon, do the prep work before you fall in love with another house. Declutter, handle small repairs and gather paperwork. Then, if the right home comes along, you can list quickly instead of scrambling.
Think about the season
Timing matters on the Island. Moving in a snowstorm is no fun, and some buyers prefer not to move while kids are in school. Think about when you would ideally like to be settled and work backward from there.
Keep one person coordinating
Running two transactions at once means two sets of conditions, deadlines and lawyers' requirements. It helps to have one person keeping an eye on both timelines. When I represent a client on both sides, I keep a simple shared calendar with every key date, so nothing slips through the cracks.
A quick checklist
- Get a realistic value for your current home
- Talk to your lender about your options
- Decide which risk you are most comfortable with
- Prep your home before you start shopping seriously
- Plan closing dates that leave a small buffer
- Line up movers early, especially for summer
Let's make a plan together
Every family's situation is a little different. To see how I guide clients through listing and selling, visit my page on how to sell your home in PEI, and for the purchase side, how I work with buyers. Once you'd like to map out your own timeline, contact Jodi Bernard, CENTURY 21 Northumberland Realty.
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