Should you buy or sell first?

If you’re thinking about making a move in today’s property market, one of the biggest questions you’ll likely face is: Should I buy first, or sell first?

It’s a common dilemma for homeowners looking to upgrade, downsize, relocate, or simply make a lifestyle change. The truth is there’s no one-size-fits-all answer. The right approach depends on your financial position, risk tolerance, local market conditions, and personal circumstances.

Here’s what you need to know when navigating the classic property ‘chicken & egg’ scenario.

Selling First: The Safer Option?

For many homeowners, selling first provides greater certainty and financial clarity.

Once your property is sold and unconditional, you know exactly how much money you have to work with for your next purchase. This can make budgeting easier, reduce stress around finance approvals, and place you in a stronger negotiating position when making offers. In markets where buyers have more options and properties can take longer to move, many financial commentators suggest selling first may be the lower-risk strategy.

Benefits of selling first:

  • Clear understanding of your budget
  • Reduced risk of holding two mortgages
  • Stronger negotiating power as a cash-ready buyer
  • Less pressure from finance timelines

Potential downsides:

  • You may feel rushed to find your next home
  • You could require temporary accommodation or storage
  • Settlement dates may not align perfectly

One strategy many homeowners use is negotiating a longer settlement period on their sale, giving themselves extra time to secure their next property.

Buying First: More Flexibility, More Risk

Buying before selling can be appealing, particularly if you’ve found a home you absolutely love or you’re purchasing in a highly sought-after location.

This approach allows you to move at your own pace and avoid the pressure of needing to find a property quickly after selling.

However, it can also come with greater financial risk, especially if your current home takes longer to sell than expected.

Benefits of buying first:

  • More time to find the right property
  • Avoids temporary moves or renting
  • Less disruption for families

Potential downsides:

  • Risk of carrying two mortgages
  • Increased pressure if your home doesn’t sell quickly
  • Finance approvals can become more complex

In some situations, homeowners may explore bridging finance to help cover the gap between purchasing and selling. Bridging loans can provide short-term flexibility, but they also come with additional costs and lending requirements.

What About ‘Subject to Sale’ Offers?

Another option is making an offer conditional upon the sale of your current property.

This can work well in balanced or slower-moving markets, where sellers may be more open to flexible conditions. However, in competitive situations, unconditional offers are often viewed more favourably.

A well-structured ‘subject to sale’ offer can still be a valuable tool, particularly when supported by strong marketing, realistic pricing, and a clear plan for selling your existing home.

Questions to Ask Yourself Before Deciding

Before choosing whether to buy or sell first, consider:

  • How comfortable are you financially?
  • Could you manage two mortgages temporarily if needed?
  • Are you comfortable renting short-term if you sell first?
  • Is the property you want difficult to secure?
  • How quickly are homes selling in your area?
  • What does your lending position look like today?

Speaking with a trusted real estate professional and mortgage adviser early can help you understand your options and build a strategy that works for your situation.

Final Thoughts

The ‘buy first or sell first’ question is one many Kiwi homeowners face and while there’s no universal answer, there is a right solution for your circumstances.

In today’s market, careful planning, realistic expectations, and expert advice can make the process significantly less stressful.

Whether you’re upsizing, downsizing, relocating, or taking the next step on your property journey, having the right team around you can help you move forward with confidence.

If you’re considering making a move, the EVES team is here to help guide you through every stage of the process. Get in touch with our team today!