Selling the family home and buying the next one

Last reviewed October 30, 2026

The question downsizers ask most often is "which do I do first?" There's no universal answer, but there is a right answer for your situation, and a few strategies that make the whole process much less stressful.

Option 1: Sell first

You sell your current home, then buy with a known budget.

• Advantages: you know exactly how much you have. You'll never own two homes at once, and your offer on the next home won't depend on selling.
• Risks: you need to find the next home before your sale closes, or arrange temporary accommodation. A longer closing date on your sale can give you time.

Option 2: Buy first

You find and buy your next home, then sell the family home.

• Advantages: you secure the right home without pressure. You can move at your own pace, and sell the family home once it's empty, clean and easy to show.
• Risks: if the sale takes longer or brings less than expected, you may carry two homes. You need the financial capacity, or a lender's support, to do this.

For downsizers with significant equity and little or no mortgage, buying first can be very workable. Some use a home equity line of credit on the current home to fund the down payment on the next one, then repay it when the family home sells. Talk to your bank about what's available.

Option 3: Both at once

You list your home and shop for the next one at the same time, aiming to firm up both within a few weeks. Your agent can help align closing dates so the purchase closes a few days before the sale, giving you a short overlap to move comfortably. If needed, a short-term bridge loan covers that gap once your sale is firm.

Preparing the family home for sale

Homes that have been lived in for decades often benefit from some preparation, but not necessarily a big renovation. In order of typical value:

1. Declutter and depersonalize. Buyers need to imagine their own life in the space. See decluttering the family home.
2. Deep clean, including windows, carpets and the basement.
3. Small repairs: dripping taps, sticking doors, burnt-out bulbs, loose handrails.
4. Fresh, neutral paint in the main rooms, if walls are tired or bold.
5. Curb appeal: tidy gardens, clean the entry, maybe a new mailbox or house numbers.

Avoid major renovations just before selling. Buyers of older homes often plan to renovate to their own taste anyway. Our sister site Sell Home in London has more on preparing a London home for sale.

Should you move out before listing?

If you buy first, selling an empty (or lightly staged) home can be easier: no need to leave for showings, and no worries about keeping everything spotless. If you're still living there, a good agent will schedule showings considerately and help you keep the process manageable.

Costs to plan for

• Selling: real estate commission, legal fees, possibly a mortgage discharge fee, and any preparation costs.
• Buying: Ontario land transfer tax (London has no municipal tax), legal fees, title insurance, an inspection, and adjustments.
• Moving: movers, possibly storage, and new furniture sized for the new home.

When you add these up, you'll see how much money downsizing actually frees up. It's a useful reality check before deciding.

Building your team

You'll want a real estate agent (ideally one who can handle both the sale and the purchase), a real estate lawyer, and possibly a mortgage advisor and a financial planner. If family members are helping, decide early who's involved in which decisions.