If you’re a homeowner planning your next move, you’re probably wrestling with a big question: Should you sell your current home first or buy your next one before you list?
It’s one of the most common dilemmas homeowners face, and the answer isn’t the same for everyone. Your best move depends on your finances, the local market, and your personal comfort level with risk and temporary transitions. That’s why working with an experienced local agent is invaluable, they’ll help you weigh the pros and cons and create a plan that fits your life and your goals.
Still, it’s helpful to understand the basic advantages of each route. Let’s explore what’s at stake, and why for many homeowners today, selling first can be a smart strategy.
Why Selling First May Be Your Best Move
1. Unlock the Power of Your Home Equity
One of the biggest advantages of selling first is freeing up your equity. Thanks to strong price growth in recent years, homeowners have built significant wealth. In fact, data from Cotality (formerly CoreLogic) shows the average homeowner is sitting on about $302,000 in home equity today.
By selling first, you’ll have that equity in hand to put toward your next down payment, or even buy your next home outright with cash. That can open up more options, help you avoid private mortgage insurance (PMI), or simply make your budget go further.
2. Avoid Paying Two Mortgages at Once
Buying a new home before selling your current one can saddle you with two mortgage payments even if only for a few months. That financial strain can be stressful, especially if your current home takes longer to sell than expected or unexpected repairs pop up.
As Ramsey Solutions puts it: “It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.”
Selling first eliminates that double-payment risk and keeps your budget on solid ground.
3. Make a Stronger Offer on Your Next Home
Sellers love certainty and if you’ve already sold your home, your offer won’t be contingent on selling your current property. That’s a huge advantage in a competitive market. A clean offer could help you edge out other buyers and secure the home you really want.
Your real estate agent will help you draft the strongest offer possible, positioning you as a serious, prepared buyer.
But There’s One Trade-Off…While selling first offers many benefits, it does come with a potential hiccup
You Might Need Temporary Housing
Once your home sells, you may have a gap before you can close on your next place. That might mean finding a short-term rental, staying with family, or negotiating a post-closing occupancy, where you rent back your home from the buyer for a set time.
The good news? A skilled agent can help you plan for this transition and negotiate flexible terms to keep the move as smooth as possible.
When Buying First Might Make Sense
There are situations where buying before selling could still be the right call. Consider buying first if:
- You want to avoid the stress of finding temporary housing.
- You have enough savings to cover your next down payment without selling first.
- Homes are selling quickly in your area, making you confident your current home will sell fast once you list.
These factors are key and your agent can help you assess how they apply in your market.
Sell First or Buy First?
Here’s a simple snapshot to help you weigh your options:
Bottom Line
Selling first often gives you more financial flexibility, fewer surprises, and stronger negotiating power for your next home. But every situation is unique and the smartest move is to talk to a real estate expert who knows your market inside and out.
If you’re thinking about making a move, Let's Connect! We’ll look at your equity, your timeline, and your local market conditions to create a seamless plan for your next chapter.
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