The "Buy First" Dilemma
In the dynamic landscape of Oakville real estate, the age-old question remains: Should I buy my new home before selling my current one?
In a "hot" seller’s market, buying first is often necessary to secure a property before it disappears. However, as we navigate the nuances of the 2025 market—where inventory levels have normalized and days-on-market are ticking upward—the risks of buying first have evolved.
While buying first allows you to shop without the pressure of a looming closing date, it exposes you to two primary risks: owning two homes simultaneously (and paying two mortgages) or being forced to sell your current home at a discount to close on time.
Fortunately, with the right team and strategy, you can mitigate these risks effectively regardless of property type.
1. The "Sale of Buyer’s Property" (SPP) Condition
One of the most powerful tools in a balanced market is the Sale of Buyer’s Property (SPP) condition. This clause essentially tells the seller: "I want to buy your house, but I need to sell mine first."
When you include this condition in an Agreement of Purchase and Sale, you are given a specific period (typically 30-60 days) to sell your existing home. If your home doesn’t sell within that window, the deal effectively dies, and your deposit is returned. You are not legally bound to complete the purchase, shielding you from the financial disaster of owning two properties.
The "Escape Clause" Nuance: It is important to understand that sellers will almost always require an "Escape Clause" in return. This allows the seller to continue marketing their property. If they receive a second, better offer, they can trigger a notice period (usually 24 to 48 hours) requiring you to either waive your condition (go firm) or walk away.
- Resourceful Tip: In the current Oakville real estate climate, the SPP condition is regaining popularity across all property types, from condos to detached estates. It offers protection, but you must be prepared to act fast if the Escape Clause is triggered.
2. The "Long Closing" Strategy
If an SPP condition isn't an option, negotiating a Long Closing on your purchase can provide a critical buffer. Instead of the standard 30-60 day closing, we negotiate a period of 90 to 120 days (or more).
This extended runway gives you ample time to list and sell your current home without the panic of a "fire sale." It allows you to wait for the right offer rather than accepting the first one out of desperation.
- Pro Tip: This works best when the seller of the home you are buying also needs time to move or find their next property. It creates a "win-win" scenario where both parties enjoy a reduced-stress timeline.
3. Work Both Ends to the Middle: Be "List Ready"
The most sophisticated strategy for 2025 is to actively prepare your home for sale while you are out looking for your new property. We call this "working both ends to the middle."
Too many homeowners wait until they have bought a new home to start prepping their old one. This delay is costly. Instead, we recommend getting your current home List Ready immediately:
- Declutter and Stage: Have the home fully staged.
- Pre-Inspection: Complete any necessary repairs upfront.
- Photography & Video: Have the professional media assets shot and ready in the vault.
By doing this, you can list your home on MLS the very moment you sign an offer on your new property. You don't lose precious weeks to painting or cleaning. You hit the market instantly, maximizing your days on market to find a buyer, which aligns your sale and purchase timelines perfectly.
4. Bridge Financing: The Financial Safety Net
Even with perfect timing, closing dates rarely align exactly. If you close on your new home on the 1st, but your current home doesn't close until the 15th, you will need Bridge Financing.
Bridge financing is a short-term loan that covers the gap between the two closing dates. It allows you to use the equity from your current home to fund the down payment on the new one.
To qualify for a bridge loan, most Tier-1 lenders now require a firm sale agreement on your current home. This means you cannot simply list your home and get a bridge loan; you must have a signed, condition-free offer from a buyer.
Note: Bridge loans are typically interest-only loans. While the rates are higher than standard mortgages (often Prime + 2.00% or more), the cost is usually negligible compared to the risk of defaulting on a purchase.
Partner with the Bernard Team
Navigating the complexities of buying and selling simultaneously requires more than just a generic agent; it requires a strategic partner deeply embedded in Oakville real estate. The Bernard Team brings a unique advantage to homeowners. We don't just list homes; we engineer transactions.
Our expertise allows us to "work the middle"—coordinating long closings, managing "List Ready" preparations, and negotiating protective SPP conditions to ensure you are never overexposed. We understand the liquidity differences between different neighbourhoods and property types in Oakville, allowing us to predict timelines with precision. Whether you are upsizing, downsizing, or rightsizing, we protect your equity and your peace of mind.
Ready to make your move with confidence? Contact The Bernard Team today to schedule a strategic consultation. Let’s plan your transition perfectly.
