Buy First or Sell First? How to Move Without Carrying Two Mortgages

This question comes up a lot. The client is ready to move, but is struggling with logistics and timing.

Do you wait to find your perfect dream home first? If so, are you in a position to be competitve when making an offer?

Do you sell your current home and hope to find something suitable by the completion date? Do you worry about not being able to find something, or don't want to feel rushed in making such a big transaction? Will you be homeless if you cant find something?

If you're looking to move up or down the property ladder but can't afford to carry two homes at once, you're not alone. The process of buying and selling simultaneously can feel like a tightrope walk—but with the right strategy, you can avoid financial strain and still land your ideal home.

Below is a step-by-step breakdown of the three main paths, including the pros and cons of each.

Option 1: Make an offer subject to the sale of your current home

This means you submit an offer on a new home, but it's conditional on selling your existing property first.

Pros:

• Lower financial risk—you only move forward if your home sells.
• Offers peace of mind during the transition.

Cons:

• In competitive markets, these offers are almost always rejected.
• Sellers typically prefer clean offers with fewer conditions. Expect to pay more as you have little negotiating room on price.
• Works best only with overpriced, eccentric, or stale listings.

Best For: Buyers in a slow market or those not in a rush to purchase something highly sought-after.

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The reality in Victoria, is over the past 10+ years we have had very few market conditions where this strategy is acceptable.

For example, if you're a young family who has outgrown your condominium and looking to purchase a 'starter' single family home in the $900k - $1.2M range in the urban core. This is a highly competitive segment of the housing market, and likely always will be. In practice, you will be disappointed to find out that no Seller is willing to entertain your offer. Why? Because there is a lineup of people who can make clean / firm offers.

This strategy is especially weak when you haven't even prepared your home to hit the market. Have you decluttered, made repairs, and have the photos and media ready to go? Are you going to list for a realistic price? Even if the Seller is considering your 'subject to sale' offer they will be asking, if/when your house is going on the market, is it a marketable property suitable for a quick sale, and are you listing at reasonable market price. Is the Seller willing to wait and tie-up the sale of their home while you spend weeks or months selling your home? Probably not, especially when its a desirable home.

Typically a Seller will add in a time-clause, allowing them to put the Buyer on the clock to make a decision within 24 hours if another offer comes in.

Option 2: Buy first, then Sell

This route involves purchasing your new home before selling your current one.

Pros:

• You don’t have to move twice.
• Ideal if you've found your “forever home” and don’t want to lose it.
• No pressure to rush the sale of your current home (if you can carry both properties for a while).

Cons:

• High financial risk—you’re at risk of carrying two homes until yours sells.
• May require bridge financing or large cash reserves.
• Your current home may be less marketable and desirable in the current market conditions making it challenging to sell for the price you want/need.

Best For: People with strong financial flexibility, or when the market is very hot and homes are expected to sell fast.
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Option 3: Sell first, then Buyer (with long completion) 

This means you sell your current home first, negotiate a long closing period (e.g., 60–120 days), then shop for your new home.

Pros:

• You know your exact budget after selling.
• Enables you to make stronger, cleaner offers on your next home. Get the best price and terms on your purchase because you have strong offer and beat out the competition.
• No risk of owning two properties at once.

Cons:

• May require temporary housing (Airbnb, rentals, moving twice) if you can't align dates.
• Short-term inconvenience during the transition.

Best For: Buyers who prioritize financial security and negotiation strength in a competitive market.

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At 8X Real Estate we work relentlessly to mitigate the risk of requiring rental accommodation. We have been involved in dozens of transactions where we successfully aligned the sale and purchase on the same day, or a few weeks before if the client needs a transition period to move between properties.

This may be particularly challenging in the event you purchase a tenanted home, as the statutory notice period for vacant posession is 3-months.

My Recommendation

For most people who can't afford to own two homes, selling first with a long closing period is the most practical and financially secure approach. It allows you to:

• Know exactly how much you can spend.
• Make competitive offers with fewer conditions.
• Avoid bridge loans or financial stress.

Yes, it might mean moving twice or storing your belongings—but the short-term hassle can lead to a long-term win.

Every situation will be unique, depending on the clients current home and market segment they are looking to get into. Dustin Miller at 8X Real Estate can advise on the best strategy for you.