Should You Buy or Sell First in Burnaby?

If you need the equity from your current home to fund your next purchase, selling first is usually the safer starting point. Buying first can work when your financing is confirmed and you can manage the costs if your home takes longer to sell.

Whether you are moving from a Metrotown condo into a townhouse or downsizing from a detached home in Burnaby, the decision should start with your finances, the homes available and a realistic plan for both transactions.

When selling first makes sense

Selling first gives you a clearer picture of your sale price and the money available for your next home. It can also reduce the pressure to accept a disappointing offer because a purchase deadline is approaching.

I would usually lean toward selling first if your down payment depends on the sale, carrying two homes would stretch your budget, or your property may take time to find the right buyer.

The tradeoff is finding your next home before you need to move. We can try to negotiate more time before completion and possession, while keeping a backup plan for temporary accommodation and storage. The dates still need to work for the other party.

When buying first may work

Buying first lets you secure a home that meets your needs before committing to leave your current property. That can matter when you need a particular layout, accessible features or a location close to family.

Before taking that route, confirm with your mortgage professional how the purchase will be funded if your current home remains unsold. Work through the cost of overlapping mortgages, insurance, property taxes, utilities and any strata fees.

Your budget should also survive a lower sale price than you hoped for. An asking price is a marketing decision; it is not money you can count on receiving.

Confirm the money before making an offer

A mortgage pre-approval is a useful starting point, but it is not final approval for a particular purchase. BCFSA notes that financing can still be declined if your circumstances change or the lender's valuation does not support the purchase price.

Ask when your purchase deposit is due and how you will fund it. Also allow for selling costs, any mortgage payout penalty, legal fees, applicable purchase taxes and moving expenses.

Bridge financing may help when your next purchase completes before the sale proceeds from your current home are available. Eligibility and costs vary. For example, RBC requires a firm sale agreement on the existing home. Confirm your own lender's requirements rather than assuming a bridge loan will cover an unsold property.

Can you make the purchase subject to selling

A subject-to-sale condition is another option to discuss. It can make your purchase conditional on selling your existing home under the terms written into the contract.

The seller must agree, and the condition can make your offer less attractive than one without that uncertainty. Deadlines and any provision allowing the seller to consider another offer need careful review. I will help you assess the practical risks and involve your lawyer when legal advice is needed.

Coordinate completion and possession separately

Completion is when ownership transfers and the purchase funds are paid. Possession is when you are entitled to move in under the contract. As BCFSA explains, these dates do not have to be the same.

Before accepting dates, have your lender and lawyer or notary check how money will move between the two transactions. Then confirm when you must leave your old home and when you can access the new one.

For example, if your purchase completes five days before your sale, those five days need an approved funding plan. If you must leave your old home before getting possession of the new one, you also need somewhere to stay. Matching calendar dates alone does not solve either problem.

Build your plan before listing or buying

My first step is to review what your current home could realistically sell for, what your next home is likely to cost, and how much flexibility you have. I would want clear answers to these questions:

How much sale equity do you need for the next purchase?

What happens if your home sells for less than expected?

How long can you afford overlapping ownership costs?

Where will you stay if the possession dates do not line up?

With more than 30 years of construction and renovation experience, I can also help you assess the condition of your current home and the work a replacement property may need. Those costs belong in the decision from the beginning.

Planning a move in Burnaby or the Lower Mainland

If you are thinking about buying and selling, contact me before making either commitment. I will help you compare the options and work with your mortgage professional and lawyer or notary to plan the sequence.

Start with a home evaluation, or explore my Home Selling Guide and Home Buying Guide at HomesForBC.ca.

Call or text 604.862.8000, or email robert@HomesForBC.ca.