Should You Sell Your Home First or Buy a New One?
It’s one of the biggest decisions in real estate: should you sell your current home first or buy your new one before letting go of the old? Both options come with unique benefits and potential challenges. By weighing the pros and cons—and having a solid plan for any curveballs—you can confidently make the right call for your situation.
Option 1: Selling First
Selling your home before buying a new one gives you a clear financial picture. You’ll know exactly how much you’ve earned from the sale, so you can set a realistic budget for your next home.
The downside? You may feel pressure to find your new home quickly. However, with all the details of your sale in hand—like the buyers’ move-in date—you’ll have the leverage to make an informed and confident offer on your next property.
If move-in dates don’t align, temporary housing is always an option. It’s a small price to pay for peace of mind and financial certainty.
Option 2: Buying First
When you choose to buy your new home first, you’ll know your future address, the exact price of your new place, and the timeline for moving in. This clarity can be incredibly reassuring as you prepare to sell your current home.
You can even make your purchase offer conditional on selling your current property which is becoming more popular in today's post-covid market. While this gives you flexibility, it’s worth noting that sellers may favor offers without conditions. If they receive another offer, you might need to decide quickly: remove the condition and commit to buying or step back and withdraw your offer.
To ease any stress, it’s wise to arrange a backup plan—like bridge financing—in case your current home takes longer to sell than expected.
The Bottom Line
Both options have their perks and risks, so it all depends on your priorities: Do you value financial clarity or the certainty of having your next home lined up? With careful planning and the right advice, you’ll be prepared to navigate either path confidently.