Should You Buy or Sell First?
One of the biggest questions homeowners face when making a move is whether to buy a new home first or sell their current one first. The truth is—there’s no universal right answer. The best approach depends on market conditions, financial readiness, and personal circumstances. Let’s break it down.
Buying First: The Advantages and Risks
✅ Pros:
More Options, Less Pressure – You can take your time finding the right home instead of rushing into a purchase just because you need a place to live.
Secure Your Interest Rate – Pre-approved mortgage rates typically last around 90 days. Buying before rates rise ensures you lock in a favorable deal.
Time for Renovations – If your new home needs work, you can renovate before moving in while staying in your current home.
❌ Cons:
Financial Risk – If your current home takes longer to sell than expected, you could end up carrying two mortgages.
Bridge Financing Costs – If closing dates don’t align, you may need to take out short-term financing, which adds extra costs.
Selling First: The Benefits and Challenges
✅ Pros:
Know Exactly What You Can Afford – Once your home is sold, you’ll have a clear budget for your next purchase.
No Risk of Owning Two Homes – You won’t have to worry about carrying two mortgages or selling under pressure.
Stronger Negotiating Position – Sellers may prefer buyers who don’t have a home sale contingency.
❌ Cons:
Temporary Housing May Be Needed – If you don’t find a new home quickly, you may need a short-term rental or stay with family.
Market Uncertainty – Your ideal home may not be available when you’re ready to buy.
Questions to Ask Yourself
Before deciding, consider these factors:
Where will you live if you sell first? Do you have a backup plan if you don’t find a home right away?
What will you do with your belongings? Storage costs and logistics can add stress if closing dates don’t match.
Where will your money go? If you sell first, ensure you have a secure place to park your funds.
What are your mortgage terms? Some mortgages allow portability, but timing restrictions could lead to penalties.
What’s the worst-case scenario? Can you afford two mortgages if your home doesn’t sell as fast as expected?
How much stress can you handle? Moving is already stressful—consider how much uncertainty you can manage.
What’s happening in your local market? The right choice depends on how hot the market is for buying and selling.
The Bottom Line
If selling your current home for top dollar is your priority, selling first may be the safer choice. If securing the perfect home is more important, buying first might be the way to go.
Need help making the right decision? Let’s chat—I'll help you navigate the process with confidence.
So, Should You Buy or Sell First?
If you’re moving from a slower market to a competitive one, selling first gives you flexibility.
If you’re moving from a hot market to a more stable one, buying first could be a safer bet.
If securing the right home matters most, buying first might be the right choice.
If maximizing your sale price is the priority, selling first is likely the better move.
Ultimately, the best decision depends on your financial situation, risk tolerance, and market conditions. Need help weighing your options? Let’s connect and create a strategy that works for you.
