Should You Buy or Sell First? Expert Tips for Success

One of the biggest questions homeowners face when planning a move is: Should I buy my next home first or sell my current home first? There’s no one-size-fits-all answer, but understanding the pros and cons of each option will help you make the best decision for your situation.

Option 1: Sell First, Then Buy

Selling first can provide financial clarity and a stronger negotiating position, but it does come with potential challenges.

Pros:

You’ll know exactly how much you can afford for your next home.
No risk of carrying two mortgages at once.
Stronger negotiating power when purchasing your next home since you won’t have a home sale contingency.

Cons:

You may need temporary housing if you don’t find a new home right away.
Moving twice (into short-term housing and then into your new home) can be inconvenient and costly.

Impact on the Offer Process:

With a home sale in hand, sellers may view your offer as stronger and more reliable.
You may be in a better position to negotiate terms, including price, repairs, and closing dates, since you’re not contingent on another sale.

Best for: Sellers who want financial security before purchasing their next home and are willing to arrange temporary housing if needed.

Option 2: Buy First, Then Sell

Buying first can give you more control over your next home purchase, but it requires careful financial planning.

Pros:

No pressure to rush and settle for a home that’s not the perfect fit.
A smoother transition with just one move, instead of finding temporary housing.
More time to prepare your current home for sale to maximize value.

Cons:

You may need to carry two mortgages if your current home doesn’t sell quickly.
Increased financial stress if your home takes longer to sell than expected.
You might feel pressured to accept a lower offer on your home to avoid double payments.

Impact on the Offer Process:

If you submit an offer with a home sale contingency, sellers may see it as less competitive in a multiple-offer situation.
You might need to offer stronger terms, such as a higher price or flexible closing timeline, to make your offer more attractive.
If financing both homes simultaneously, sellers may want proof of financial readiness, such as bridge financing approval or reserves.

Best for: Sellers who have the financial flexibility to carry two mortgages or use bridge financing and want the convenience of securing their next home first.

The Best of Both Worlds: Contingency Offers & Bridge Loans

If neither option sounds ideal, there are ways to balance the risks:

Home Sale Contingency: You can include a clause in your offer stating that your purchase depends on selling your current home first. However, in a competitive market, this could weaken your position.
Bridge Loans: A short-term loan that allows you to buy before selling, giving you time to sell your current home without carrying two mortgages long-term.

What’s Right for You? Let’s Strategize Together!

Every seller’s situation is unique, and the best strategy depends on market conditions, finances, and personal preferences. I can help you navigate the process to ensure a smooth and strategic move. Let’s discuss your options and create a plan that works best for you!

Call to Action: Should you buy or sell first? One of the biggest real estate questions! This week’s blog breaks it down so you can make the best move.