The Bottom Line

If you buy a home before selling your current one, you may be paying two mortgages until your current one sells.

If you sell your current home first, you may have to move quickly before you have your next house purchased.

If you sell first, you will not have to have that contingency built into the offer on your new home.

Did you know?

Many sellers may not accept a contingency based on the sale of your current home in a strong market.

 

Should I Sell My Home First Before
Buying My Next House?

Like the proverbial chicken and the egg, which comes first – selling your home or buying your next home?

That depends on your finances, negotiating position and moving-day timeline.

Buying before selling

If you choose to buy a new home before you sell your current home, you may have to pay two mortgages until your first home sells.

You can make the purchase of your next home dependent upon the sale of your current home. Your real estate agent can write this contingency into your purchase agreement, but you’ll be taking a chance. A seller may not accept your terms in a strong housing market.

The advantage of buying a home before you sell your current one is that you have more time to look for your new home – without the added pressure of moving.

Selling before buying

If you sell your home first, you’ll know how much you can spend on your next home.  

You won’t have to make a purchase offer contingent upon the sale of your home.

Once you’ve sold your home, you’ll likely need to find a home quickly. 

In the end, only you can decide which option works best for you.  Be sure to talk with us about all of your options.