Should You Sell Your Home Before You Buy Your Next One?

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Should you sell your home before buying the next one?

Nearly the first question homeowners will need to answer when looking to make a move is whether to sell their current home before getting under contract on their next one. The short answer? It depends.

It depends on your finances, your comfort with risk, and how much disruption you’re willing to take on. Lets chat a little bit more:

The risk of waiting to sell

If you find a home you love but haven’t sold yours yet, you may need to make your offer contingent on the sale of your current home. From the seller’s perspective, that’s a less firm offer compared to someone who already has a buyer for their home. Those sellers will essentially be waiting on you to sell before their deal can move forward. In today’s competitive market, contingent offers often land at the bottom of the pile in a multiple offer situation scenario.

On the other hand, if you’ve already sold your home (or are under contract), your offer becomes much stronger. Sellers crave certainty, and a non-contingent or already committed home sale in an offer shows you can move quickly.

Bridge Loans and Equity Options

If you’re financially able, there are tools like bridge loans or equity-forward loans that allow you to tap into your current home’s value to buy your next one before selling. These options can give you flexibility, but they come with some extra costs: higher interest rates, fees, and the pressure of carrying two mortgages if your current home takes longer to sell.

So, what's best for you?

If you can comfortably carry two mortgages or use a bridge loan, buying first might make sense.

If you need the proceeds from your current home to purchase, it’s usually best to find a buyer first—even if that means finding temporary housing in between.

If you’re in a hot seller’s market and your home is likely to move quickly, a short overlap may be possible with careful planning.

The bottom line is that every seller’s situation is unique and you’re not going to be able to truly know what the best option for you will be until you talk through your options with a real estate agent. Your key will be balancing your financial comfort with your tolerance for stress and risk. A good agent (we have several in our office!!!) can help you map out the best strategy so you can move into your next chapter with confidence.