Should You Buy or Sell First? A Guide for Homeowners Facing the Big Move
One of the most common dilemmas homeowners face when planning a move is deciding whether to buy their next home before selling their current one—or sell first, then buy. The truth is, there’s no one-size-fits-all answer. Each option comes with its own pros, cons, and timing strategies. Here’s what you need to know to make the best decision for your situation.
Option 1: Buying First
The Benefits:
Housing Security: Buying first ensures you know exactly where you're moving next. This eliminates the stress of temporary housing or multiple moves.
Competitive Edge: You’ll be ready to act fast when the right home hits the market—especially important in competitive markets where timing is everything.
Stress-Free Showings: Moving out before listing means your current home can be staged and shown without the hassle of living in it—especially helpful for households with pets, kids, or busy routines.
The Drawbacks:
Financial Pressure: You could end up carrying two mortgages, along with double the utility bills, insurance, and general upkeep costs.
Financing Complexity: You'll need to qualify for a new loan while still owning your current home.
Ways to Bridge the Gap:
Bridge Loans or HELOCs (Home Equity Lines of Credit) can help fund your new purchase before your current home sells.
Delayed Closings or Contingency Clauses in your contract can help align the timelines.
Work with a seasoned real estate agent who can structure offers and negotiations to protect your finances.
Best Market Conditions: Buying first typically makes more sense in a seller’s market, where homes sell quickly and the risk of carrying two homes is lower.
Option 2: Selling First
The Benefits:
Clear Budgeting: Once your home sells, you’ll know exactly how much cash you’ll have to put toward your next property.
Stronger Buying Power: Without a mortgage already in place, you become a more attractive buyer, especially in multiple-offer situations.
Financial Peace of Mind: You avoid the risk of juggling two mortgage payments and reduce the stress of financial uncertainty.
The Drawbacks:
Temporary Housing Needs: You may have to move twice—once into short-term housing and again into your new home.
Feeling Rushed: With your home sold, you might feel pressure to buy quickly, possibly settling for a home that’s not quite right.
Smart Solutions:
Rent-Back Agreements: These allow you to stay in your sold home for a set period while you search for your next property.
Strategic Planning: Start shopping for your new home before listing your current one so you have a head start.
Best Market Conditions: Selling first is typically a better strategy in a buyer’s market, where homes take longer to sell and you have more negotiating power when purchasing.
Option 3: Keep and Rent Your Current Home
If your financial situation allows, a third option is to hold onto your current home and rent it out.
The Benefits:
Passive income.
Long-term investment and equity growth.
The Challenges:
Landlord responsibilities.
Property management logistics.
Financial cushion needed for vacancies or repairs.
This option works best for homeowners looking to build long-term wealth and who are ready to manage—or outsource—ongoing rental duties.
Bottom Line: Buy First or Sell First?
The right strategy depends on your personal finances, risk tolerance, and the current market.
Buy first if you value housing security and can comfortably carry two homes for a short time.
Sell first if you want financial clarity and don’t want to risk overlapping mortgages.
No matter which path you take, the key to success is early planning and expert guidance. A knowledgeable real estate agent can help you explore creative options like contingencies, rent-backs, or financing tools that make your move smoother and less stressful.
Thinking of making a move? Reach out to a local real estate expert to build a plan that fits your goals and protects your investment—every step of the way.
Join Randolf and Jackie in this week's Market Update video!