Upsizing: How to Buy and Sell at the Same Time
Moving up without carrying two homes
Growing family, a parent moving in, a basement suite for extra income: most of my move-up clients need more space and have to sell one home to buy the next. The hard part isn’t either deal. It’s making the two line up.
Sell first or buy first?
1Sell first.
You know exactly how much you have to spend, and you negotiate your purchase as a firm buyer. The risk: you may need a longer closing, a rent-back, or short-term housing if the right home doesn’t come up in time.
2Buy first.
You secure the home you want. The risk: you must sell by a deadline, and a rushed sale can cost you more than you saved. Bridge financing can cover the gap between closings, but only if your sale is firm.
3Buy conditionally on selling.
Possible in a slower market, but many sellers won’t accept it, or will accept it with an escape clause that lets them keep marketing their home.
Which one is right depends on how fast homes like yours are selling right now. I’ll show you the numbers before you decide.
How I line up the two deals
- Price your current home from real comparables, so it sells on schedule rather than sitting
- Match the closing dates, or build in a few days of overlap, so you move once
- Talk to your lender early about porting your mortgage, prepayment penalties and bridge financing
- Negotiate both sides with the same strategy: firm terms when we sell, and protection when we buy
- Coordinate the lawyer so both closings are handled together
Questions people ask
Should I sell my house before buying a bigger one?
In most markets selling first is lower-risk because you know your budget and avoid owning two homes. In a fast market, buying first with bridge financing can work if your home is priced to sell quickly. Sandeep Pawar reviews current days-on-market data for your area before recommending an order.
What is bridge financing?
A short-term loan that covers the down payment on your new home when your purchase closes before your sale. Lenders usually require a firm sale agreement on your current home first.
Can I keep my current mortgage when I move?
Many mortgages can be “ported” to a new property, which can avoid a prepayment penalty. Check your mortgage terms with your lender early in the process.
Selling, buying, or just thinking about it?
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Sandeep Pawar, Broker · RE/MAX Gold Realty Inc., Brokerage · 2720 North Park Drive, Suite 201, Brampton, ON L6S 0E9 · All offices