If you're getting ready to move, you're probably wondering what to do first. Should you buy your next home before selling your current one, or sell your home first and then start your search?
There’s no one size fits all answer. The right choice depends on your finances, what’s happening in your local market, and your timeline. A trusted real estate agent can help you look at all the factors and decide what makes the most sense for you.
For many homeowners right now, selling first can put you in the strongest position.
The Advantages of Selling First
Selling is often the biggest challenge when you're moving, so getting that step out of the way first can make the rest of the process much easier. That's especially true right now since there are more homes on the market than buyers, which means homes are taking a little longer to sell than they did a year or two ago.
So why does selling first make sense? One of the biggest advantages is the financial flexibility it can give you.
1. You Won’t Get Stuck Paying Two Mortgages
If you buy before you sell, you could end up paying two mortgages at the same time. And since homes are taking a little longer to sell right now, that overlap could last longer than you expect. If unexpected repairs or other costs come up, it can put even more pressure on your budget.
Selling first takes that stress off your shoulders because you won't have to juggle owning two homes at once. As Ramsey Solutions explains:
““It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.”
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2. You Can Use Your Equity To Fuel Your Move
This has always been true, but one of the biggest benefits of selling first is knowing exactly how much money you'll have to put toward your next home. A big part of that comes from the equity you've built in your current home.
Equity is the difference between what your home is worth and what you still owe on your mortgage. And it can grow faster than many homeowners realize. According to Realtor.com, homeowners who've owned their home for about five years have an average of $180,000 in equity. Those who've owned their home for six to ten years have built more than $340,000 on average.
Once you sell, you can use that equity toward the down payment on your next home or, in some cases, even buy it with cash. Knowing exactly how much you'll have also makes it much easier to plan your next move with confidence.
3. Your Offer Will Be Hard To Pass Up
Once your home is sold, you can make an offer on your next home without it depending on the sale of your current one. In today's market, where buyers are taking more time to make decisions, that's a big advantage and something sellers are happy to see.
Think about it from the seller's perspective. If their home has been on the market for a while, they're more likely to choose an offer that has the best chance of closing without any delays or complications.
It can also give you more confidence to ask for things like repairs or other concessions. A motivated seller is often willing to work with you to keep the deal together instead of waiting for another buyer. Your real estate agent can help you use that advantage to negotiate the best possible terms.
Is There a Catch?
Selling first has its advantages, but it's important to look at both the benefits and the tradeoffs before making your decision. Here's a quick comparison based on information from Zillow to help you see both sides.
The downsides are manageable with the right plan, so it's worth talking them through with your real estate agent. They can help negotiate options like a rent back, which lets you stay in your home for a set time after closing, or arrange flexible closing dates to make your move as smooth as possible.
Bottom Line
There’s no single right answer for buying and selling at the same time, but many homeowners find that selling first makes the move less stressful and can save money.
Let’s connect so you can sell and buy with greater confidence, more financial power, and less stress.
