Selling and Buying at the Same Time? Here’s What You Need to Know

Are you a homeowner contemplating a move? One of the biggest questions you’re likely asking is: “What comes first – selling my current home or buying the next one?”

The answer, of course, is “it depends!” It depends on your unique circumstances, financial situation, and the local market.

The Case for Selling First

While there’s no one-size-fits-all answer, selling your current home before embarking on your buying journey can often be the most strategic approach.

Unlock Your Home Equity: Selling first allows you to access the equity you’ve built up in your current home. Data from Cotality (formerly CoreLogic) reveals that the average homeowner is sitting on a substantial $302,000 in equity!

Avoid Juggling Two Mortgages: Trying to buy before you sell can result in the stress of managing two mortgages, even if only temporarily.

Ramsey Solutions advises: “It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.”

Strengthen Your Offer: Sellers often favor clean, straightforward offers. By selling your current home first, you eliminate the need to make your offer contingent on that sale, giving you a competitive edge in a tight market.

Potential Trade-Off: Temporary Housing

One potential drawback of selling first is the possibility of needing temporary housing between selling your current home and moving into your next.

The Bottom Line

There are distinct advantages to both selling first and buying first. Ultimately, the best approach depends on your individual circumstances and priorities. Let’s talk through which strategy makes the most sense for your situation.