Selling and Buying at the Same Time? Here’s What You Need To Know
If you’re a homeowner thinking about moving, chances are you’re asking one big question: Should I sell first, or should I find my next home before listing my current one?
There’s no one-size-fits-all answer, but there are definitely some key advantages to selling first and working with a knowledgeable local agent can help make the path forward a whole lot clearer.
Why Selling First Often Makes the Most Sense
1. You’ll Have Access to Your Home Equity
One of the biggest benefits of selling first? Unlocking the equity you’ve built over the years. According to recent data from Cotality (formerly CoreLogic), the average homeowner has around $302,000 in home equity.
That’s a major financial resource you can use for your next down payment, closing costs, or even to purchase your next home outright; which means no mortgage at all. Selling first can put you in a much stronger position for your next purchase.
2. You’ll Avoid the Stress of Two Mortgages
If you buy a new home before selling your current one, you might end up carrying two mortgages; at least for a little while. That can quickly add financial stress and risk, especially if there are any unexpected repairs or delays.
By selling first, you can focus on your next move without worrying about overlapping payments or stretched budgets.
3. You’ll Make a More Competitive Offer
In today’s market, clean offers are key. Sellers love buyers who don’t have strings attached and if you’ve already sold your home, your offer isn’t contingent on anything.
That puts you in a stronger negotiating position, especially if you’re competing against multiple offers. Your agent can help you stand out by presenting a well-prepared, solid offer.
While selling first has a lot of benefits, there’s one big thing to plan for:
If you sell your current home before you close on your next one, you may need a short-term rental or a temporary stay with friends or family.
The good news? There are ways to make this transition smoother. Your agent can help negotiate flexible closing dates or even a post-closing occupancy agreement; which means you can rent your home back from the new buyers for a short period while you finalize your next move.
What’s Right for You?
Every situation is different and your decision should reflect your timeline, finances, and comfort level. The best place to start? Have a conversation with a trusted local real estate agent who can guide you based on current market trends, your equity, and your goals.
