A Timeless Dilemma
“Should I buy first, or sell first?”
It’s a question nearly every move-up or move-down client wrestles with, and it has surfaced several times recently, so it’s a perfect moment for a quick refresher.
With few exceptions, most people can’t (or don’t want to) carry two properties at once. And even if you think you can, it’s critical to speak with your bank or mortgage broker first. Qualification rules and debt-service formulas are rigid, unforgiving, and often counterintuitive. Never assume you’ll qualify—confirm it.
So, for the majority of buyers and sellers who can’t carry two properties, the next question is obvious.
“Why Not Just Use a Sale of Buyer’s Home Condition?”
On the surface, it sounds like the perfect safety net. In reality, it rarely solves the problem and often creates bigger ones. Here’s why:
1. Your Negotiating Power Drops Dramatically
The seller is no longer waiting for a buyer for their property. Now they’re waiting for you to sell yours! They have zero control over your sale, and that uncertainty seriously weakens your position.
2. You Don’t Actually ‘Lock Up’ the Property
Even if a seller accepts your offer with the condition, the listing will not be reported as conditionally sold. It remains fully active, is still being shown, is still being marketed, and is still open to other offers.
If the seller receives a second offer, they can issue you a 24-hour (or 48-hour) notice to remove all conditions. And you can’t remove them unless your home sale is firm, right?
Result: you lose the property.
3. The Worst-Case Scenario is Ugly
Picture this:
- You buy a home with a Sale of Buyer’s Home condition.
- You list your current home and get an offer right away—but it’s conditional (as almost every offer is).
- The seller of the home you want receives another offer and gives you notice to remove all conditions.
Now what? If you remove conditions but your buyer doesn’t, you’re in trouble. If you don’t remove conditions but your buyer does, you’re also in trouble!
This is why the strategy rarely works well in the real world. It can work, but only under specific circumstances and usually with a good deal of luck.
So What’s the Better Strategy?
There’s no perfect solution, but there are two main approaches, each with its own risks.
Option 1: Sell First
Advantages
- You know your home is sold.
- You know your exact budget.
- You shop with complete confidence.
Risks
- Inventory dries up right when you start looking.
- You may feel pressured into buying something you don’t love.
- You may need to rent temporarily, and rentals almost always require a one-year lease.
Option 2: Buy First
Advantages
- You can take your time and wait for the right home.
- Once you find it, you list and sell your current property.
The possession date isn’t a significant factor, since a firm sale of your current home is treated like cash by the bank. Even if the possessions don’t line up, the cost of a short-term bridge loan is modest, and almost everyone has a possession gap anyway.
Risks
- You must sell your home afterward for whatever the market will pay.
Which Option Is Better?
For most people, Option #2—buy first, then sell—is the better choice. But only if these two key criteria are met:
- Your REALTOR® must be both skilled and brutally honest about the true worst-case sale price of your home.
- You must be comfortable with that worst-case number.
If those conditions are met, buying first is almost always the smoother and more successful path. And while you’re shopping, you can simultaneously prep your home so it’s ready to hit the market quickly.
What About ‘Guaranteed Sale’ Programs?
This is a much bigger topic, but here’s the short version:
Guaranteed sale programs are scams. The “guaranteed” price is typically so low that no seller in their right mind would ever accept it. The “Guaranteed Sale” sounds enticing, gets the agent in the door, and then the pitch changes. It’s a classic bait-and-switch.
The Bottom Line
Buying and selling simultaneously will always carry some inherent risk. But when you work with the right agent—someone who knows the market, understands pricing deeply, and can guide you through the worst-case scenarios—the entire process becomes dramatically easier and far less stressful.