Buying and Selling at the Same Time: How to Time Your Move in BC

If you already own a home, your next purchase comes with an extra question: do you sell first or buy first? There is no single right answer, but there are good ways to manage the risk on either side. Here is how I help clients line up the two moves.

The short version

Option 1: Sell first

Selling first removes the biggest unknown: what your current home will sell for. Once your sale is firm, you know your budget, and you can shop as a buyer without a sale subject, which sellers generally prefer. The trade-off is timing. If the right home does not come up before your completion date, you may need a short-term rental or storage, or you can negotiate a later completion or possession date with your buyer.

Option 2: Buy first

Buying first lets you secure the home you want, which matters when good homes in your area sell quickly. The risk is that your current home takes longer to sell, or sells for less, than you planned, while your purchase is already firm. If you go this way, price your current home realistically from the start and have a financing plan in place for the gap.

Making an offer subject to the sale of your home

A middle path is to buy with a subject to the sale of your current home. BCFSA's standard clauses for this include a time clause: the seller can keep marketing their home, and if they receive another acceptable offer, they give you written notice and a set number of hours to remove your subjects. If you do not, the contract ends and your deposit is returned. The notice period is negotiable, and is often 24 to 72 hours.

Sellers tend to prefer offers without this subject, especially when there is competition, so it works best when your home is already listed, or about to be, and priced to sell.

Lining up your dates

When both deals are firm, the dates do the heavy lifting. Many people set their sale to complete a few days before their purchase, so the money from the sale is in place to fund the purchase and there is a cushion if anything is delayed. Possession dates can be set to give you time to move, and your lawyer or notary coordinates the funds between the two transactions.

Bridge financing

If your purchase completes before your sale, bridge financing can cover the gap. It is a short-term loan that lets you use the equity in your current home toward your new one until the sale completes. Lenders usually require a firm sale on your current home, the term depends on the lender, and the rate is typically higher than a regular mortgage, so it is best kept short. Ask your lender about it before you set your dates.

Porting your mortgage

If you are partway through your mortgage term, check whether your mortgage is portable. Porting lets you move your existing balance, rate and terms to your new home, which can help you avoid breaking your mortgage when you sell. If your new home costs less than your mortgage balance, a penalty may still apply, so ask your lender how it works for you.

Questions clients often ask me

Should I buy or sell first?

It depends on how quickly homes like yours are selling, how much you need from your sale to buy, and how much risk you are comfortable with. Selling first gives you certainty about your budget. Buying first secures the home you want but can leave you carrying two properties for a while.

What is a time clause?

In an offer that is subject to the sale of your home, a time clause lets the seller keep marketing. If they receive another acceptable offer, they give you written notice and a set number of hours, often 24 to 72, to remove your subjects, or the contract ends and your deposit is returned.

What is bridge financing?

A short-term loan that lets you use the equity in your current home toward your new one when your purchase completes before your sale. Lenders usually require a firm sale on your current home, and the rate is typically higher than a regular mortgage.

Can I take my mortgage with me when I move?

If your mortgage is portable, you may be able to move your balance, rate and terms to your new home. A penalty may still apply if the new home costs less than your balance, so check the details with your lender.

What happens if I buy first and my home does not sell?

Once your purchase is firm, you are committed to completing it, so you would need financing to close without the sale proceeds. That is why buying first works best with a realistic price on your current home and a financing plan agreed with your lender in advance.

For more on each side of the move, see my seller's checklist, the home buying timeline in BC and BC Assessment vs market value.

This article is general information, not financial or legal advice. Talk to your lender about bridge financing and porting. For BCFSA's guidance to sellers on offers, see offers from buyers.