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Should you sell first or buy first?
One of the biggest questions homeowners face when they’re ready to move is surprisingly simple:
Should I sell my current home first, or should I buy my next home first?
The answer depends on your finances, the equity in your current home, your comfort level, and what’s happening in the real estate market. There is no single strategy that works for everyone.
Selling Your Home First
Selling first can give you something extremely valuable: certainty.
Once your home closes, you know exactly how much money you have available for the next purchase. If you’re using equity from your current home for the down payment on the next one, selling first can simplify the financial side of the transaction.
It can also put you in a better position when making an offer because your purchase may not need to depend on selling another property.
The challenge is timing. If your current home sells before you find the right replacement, where will you live?
You might need temporary housing, a short-term rental, or another arrangement while searching for your next home. Moving twice isn’t anyone’s idea of fun.
Buying Your Next Home First
Buying first can make the physical move much easier.
You find the home you want, close on it, move your belongings, and then prepare your old home for sale without trying to live through showings and inspections.
But there is an important question:
Can you comfortably afford to own both homes if the first one doesn’t sell as quickly as expected?
That means looking beyond the purchase price. You need to consider mortgage payments, insurance, taxes, utilities, HOA fees when applicable, maintenance, and the possibility that your existing home could take longer to sell than anticipated.
There May Be a Third Option
Real estate transactions don’t always have to be simply “sell first” or “buy first.”
Depending on your circumstances, we may be able to structure the timing of the transactions differently. Financing options, contract terms, closing dates, possession arrangements, and other strategies may help bridge the gap between selling one home and buying another.
The important thing is to investigate those possibilities before putting your home on the market or writing an offer.
Start With the Plan, Not the House
This is where I believe many homeowners get things backward.
They start looking at homes online, find something they love, and then begin figuring out what to do with the house they already own.
I would rather start with the complete picture.
What is your current home realistically worth? How much equity do you have? What do you expect to net after selling? What payment are you comfortable with on the next home? How quickly could your current home reasonably sell? And what happens if the two transactions don't line up perfectly?
Once we know those answers, we can determine which strategy makes the most sense for your particular situation.
Thinking About Making a Move?
Whether you're moving across Tucson, relocating to another part of Arizona, downsizing, moving closer to family, or simply looking for a home that fits your life better, let's talk about the strategy before you make the move.
Wes Stolsek, REALTOR®
OMNI Homes International
520-404-9773
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