Is It Better to Buy First or Sell First?

Chris Miller
Tuesday, July 16, 2024

If you already own a home and want to move, one of the biggest questions is whether to buy first or sell first. There is no single right answer. The best strategy depends on your finances, risk tolerance, local market conditions, and how specific your next home needs to be.

Selling first can provide more certainty. Once your current home is sold, you know how much equity you have available and what your closing timeline looks like. This can make budgeting easier and may reduce the stress of carrying two homes.

The potential downside is that you may need temporary housing if you cannot find your next home in time. You may also feel pressure to buy quickly if your possession date is approaching.

Buying first can give you more control over your next move. This may be appealing if you need a specific location, school zone, property type, or layout. It allows you to secure the right home before listing your current one.

The risk is financial. If your current home takes longer to sell than expected, you may need bridge financing, a flexible closing plan, or the ability to manage two properties for a period of time.

Before deciding, consider these questions:

  • How quickly are homes like yours selling?
  • How much demand is there for the type of home you want to buy?
  • Can you qualify to buy before selling?
  • Would bridge financing be available if needed?
  • How flexible are you on timing?
  • Do you have somewhere to stay temporarily?

Market conditions matter. In a seller’s market, your current home may sell quickly, but buying can be competitive. In a buyer’s market, finding your next home may be easier, but selling could take longer.

Some homeowners use conditions to manage risk. For example, a buyer may include a condition related to selling their current home. However, in a competitive situation, sellers may prefer offers with fewer conditions. This is why local advice matters.

A successful move-up strategy is not just about timing the market. It is about protecting your finances and reducing avoidable stress.

Before making a move, ask your real estate professional to prepare both a selling plan and a buying plan. When you understand both sides of the move, it becomes easier to choose the order that fits your life.


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