Should You Buy or Sell First? The Ultimate Guide for Ottawa Homeowners in 2025

If you’re planning to move in 2025, there’s one big question you’ll have to answer:

Should you sell your current home before buying your next one? Or should you buy first and sell later?

There’s no one-size-fits-all answer—it depends on your finances, risk tolerance, and the current market. The wrong move could leave you homeless (if your home sells too fast) or overextended (if you end up carrying two mortgages).

So, let’s break it down. Here’s what Ottawa buyers and sellers need to consider in 2025.

Option 1: Selling First

(You sell your current home before buying your next one.)

Selling first means you know exactly how much money you have before buying your next home. It’s the safer option, but it does come with some trade-offs.

✅ Pros of Selling First

✔ You know your budget. No guessing or assuming—once your home is sold, you know exactly how much you can afford for your next place.

✔ No risk of carrying two mortgages. If you buy first and your old home doesn’t sell quickly, you could be stuck paying two mortgages for months. Selling first eliminates this risk.

✔ More negotiating power as a buyer. Sellers prefer offers with fewer conditions—if you’ve already sold your home, you can make a stronger offer with no “subject to sale” clause.

✔ No pressure to accept a low offer. If you buy first, you might feel desperate to sell fast, which could mean accepting a lower price. Selling first removes that stress.

❌ Cons of Selling First

❌ You might have to rent short-term. If you sell your home but haven’t found a new one yet, you may need to rent or move in with family—which means extra moving costs.

❌ You might feel rushed to buy. Once you’ve sold your home, you’ll have a deadline to find a new one. This can lead to settling for a home that’s good enough rather than your dream home.

💡 Best for: Homeowners who want to avoid financial risk and need certainty about their budget.

Option 2: Buying First

(You buy your new home before selling your current one.)

Buying first gives you total control over your next home purchase—but it’s riskier, especially in a market where homes don’t always sell immediately.

✅ Pros of Buying First

✔ You have time to find the perfect home. No pressure, no rushed decisions—you can take your time to buy a home that truly fits your needs.

✔ No need for temporary housing. You can move from your old home straight into your new one, avoiding the hassle of short-term rentals or living with family.

✔ You can make renovations before moving in. If your new home needs a little work, you can complete renovations while still living in your old home.

❌ Cons of Buying First

❌ You could get stuck with two mortgages. If your old home doesn’t sell quickly, you’ll be paying for both properties until it does.

❌ You might feel pressure to sell fast. To avoid double payments, you could be forced to accept a lower offer on your home just to get it sold.

❌ Lenders might require a bridge loan. If your old home hasn’t sold by the time you close on your new one, you may need a bridge loan—temporary financing that lets you cover both properties. Not all banks offer these, and they come with extra costs.

💡 Best for: Homeowners who have financial flexibility and don’t want to feel rushed into a home purchase.

Which Strategy Works Best in Ottawa’s 2025 Market?

🔹 If it’s a seller’s market (high demand, low inventory) → Selling first is less risky because homes move quickly. You’ll likely have multiple offers and can negotiate a flexible closing date to line up your next purchase.

🔹 If it’s a buyer’s market (more homes for sale, fewer buyers) → Buying first can work because you’ll have more choice and negotiating power as a buyer. Just be prepared to price your current home competitively to sell quickly.

🔹 If the market is balanced (like it is in early 2025) → There’s no clear winner—it depends on your personal financial situation and risk tolerance.

The Best Compromise? A Conditional Offer

If you’re not comfortable selling first or buying first, there’s a middle ground: a conditional offer.

This means you buy your next home only if your current home sells within a set period (usually 30–60 days).

✔ Lower risk: You won’t be stuck with two mortgages.
✔ More control: If your home doesn’t sell, you can walk away from the deal.
✔ Stronger negotiating position: If you find the right seller, they may be willing to accept this condition.

The catch? Not every seller will accept a conditional offer, especially in competitive markets.

Final Thoughts: What’s Right for You?

If you’re risk-averse → Sell first. You’ll know exactly how much money you have and avoid carrying two mortgages.

If you have financial flexibility → Buy first. You won’t feel rushed into a purchase, but you need to be prepared in case your old home takes longer to sell.

If you’re unsure → Work with a real estate expert. Timing the market isn’t easy, but the right strategy can save you thousands and reduce stress.

Thinking about making a move in 2025? Let’s chat. We’ll help you figure out the best plan based on your goals, finances, and the current Ottawa market.