If you’re planning to move, one of the biggest decisions you’ll face is whether to sell your current home before buying your next one. There’s no one-size-fits-all answer, and the right choice depends on your finances, timeline, risk tolerance, and local market conditions.
This article explores the pros and cons of selling first so you can make the best decision for your situation.
Pros of Selling Your Home Before Buying
You Know Exactly What You Can Afford
By selling your current home first, you’ll know how much equity you have to work with. This gives you a clearer picture of your budget for the next home and can make your financing options more straightforward.
Easier to Qualify for a New Mortgage
When your current home is sold and the mortgage is paid off, your debt-to-income ratio improves. That can help you qualify for a better loan or lower interest rate when you buy your next home.
Less Pressure to Carry Two Mortgages
Owning two homes simultaneously means managing two sets of mortgage payments, taxes, insurance, and maintenance costs. Selling first eliminates that financial strain and reduces risk.
You Can Make a Stronger Offer
If you’ve already sold your home, you can often make a non-contingent offer on a new property. Sellers typically favor offers without a “home sale contingency,” making you more competitive in a tight market.
Cons of Selling Before You Buy
You May Need Temporary Housing
If you sell your home before finding a new one, you may need to stay in temporary housing. This can be inconvenient, especially if you’re moving with family, pets, or a lot of belongings.
You Could Move Twice
Living in temporary housing often means putting some belongings in storage and dealing with multiple moves in a short period of time. This adds time, effort, and additional expense to your transition.
The Market Could Shift While You Search
If home prices rise quickly while you’re between selling and buying, your purchasing power could decrease. In a fast-moving market, you may face more competition or higher prices than when you sold.
Considerations Before Making a Decision
Financial Flexibility
If you can afford to carry two mortgages temporarily, buying first may be more comfortable. But if you’d rather avoid the financial stress, selling first may be the safer option.
Local Market Conditions
In a seller’s market (where demand is high and inventory is low), homes tend to sell quickly. Selling first may give you the leverage to make a strong offer. In a buyer’s market, however, it may take longer to sell your home, so buying first might help you lock in a good deal.
Your Timeline and Personal Needs
Think about your lifestyle, family needs, and job situation. Do you need to move by a certain date? Would multiple moves be disruptive? Timing matters, and flexibility is key.
Final Thoughts
Selling your home before buying a new one can help reduce financial risk, simplify your mortgage approval, and make your next purchase more competitive. However, it may also lead to temporary inconvenience and pressure to find a new home quickly.
There’s no perfect path—but with the right planning and guidance, either option can work. A trusted real estate agent can help you weigh your options, evaluate market conditions, and align your decision with your financial goals.
If you’re considering a move and want help creating a plan that fits your needs, reach out anytime for a no-pressure consultation.
