List, then look or Look, then list?

What’s the market like?

Perhaps the most important concern when considering whether to list then buy or buy then list is the type of market you’re in. Janai advises that, “what we typically say… [is] it depends on the market.” Your listing agent will know if you’re in a buyer's market or a seller's market and help you determine which approach to take based on your goals.

If you’re moving into a location that’s in a seller’s market, for example, it would be ideal to buy your next place first, then list your current place, because it could be tricky to find a place later. But if it’s a buyer’s market, you could list your current place first, since it would be easier to find another place.

Market conditions can also affect what subjects your listing agent would advise you to put into your own offers and consider from interested buyers. “If the market's really slow, you can sort of take a risk and look for homes that you like and put an offer in and list your home to sell, because sellers will consider a subject to a sale offer,” says Janai.

On a related note, one thing that could happen if you start looking for a new place before listing your old one is stumbling across your new dream home. In this scenario, it’s best to get a listing agent as soon as possible and let them know what’s happened.

Since it can be difficult to determine what market you’re in and the market of the home you’re looking at (if it’s in a different neighbourhood), be sure to discuss these topics with your listing agent.

What’s your timeline?

Another factor influencing whether it’s better to list then look or look then list is your timeline. If you must move urgently, say because your job got relocated and you have one month’s notice, then you may have no choice but to buy and then list. On the other hand, if you’re downsizing and only leisurely considering where you’ll end up in a year or so, your options are more flexible. Or, if you bought a pre-sale condo already and its expected completion date is a year or two away, then you have a pretty firm move out date set already, and can plan accordingly.

Let your listing agent know your timeline and goals. Remember that buying a new place and selling your old place at the same time will require some careful planning.  Your listing agent can also act as your buyer's agent for the places you’re considering, so rely on their expertise in both areas.

Can you handle the financials?

Regardless of market conditions, you may not be able to afford buying a new home first if you need the proceeds from selling your old place. Listing first means, “We know what your home is probably worth. We can give you an estimate of what it is most likely to sell for and what you'll walk away with. So you kind of have in your mind now your budget,” says Janai.

There are financing options available, though. You could apply for a bridge loan to handle the overlap between two mortgages, but this will still require approval by a lender. Most bridge loans are about six months long, though there is some flexibility.

You must also consider the cost of temporary accommodations if you decide to list first and then look. If your home sells and you need to move out, you’ll have to move to a hotel room or short-term rental, plus put your stuff in storage. You may want to ask to stay with family or friends for a while instead.

While your agent cannot give you detailed financial advice like a mortgage broker could, they can still give you a ballpark estimate of what you’ll pocket after a sale so you can factor this into your plans.