Should I Sell My Home Before Buying Another?

Three things people who need to buy and sell simultaneously must consider.

In today’s real estate market, low inventory and high demand dominate the conversation. It’s easy to sell a home, but it’s much harder to buy one. Many homeowners are in a position where they need to complete both transactions in a short period.

Interest rates are starting to climb up, which has created a sense of urgency for buyers and sellers. Deciding which one to complete first comes down to several factors. Each route comes with pros and cons, but the right option for you depends on your particular situation.

We do have a few special programs that help our clients in this situation. For one, we have access to the Cash Is King program, where our lender will buy a home for you in cash under the assumption that you will then sell your property.

We are also working with another company that will buy your house in cash up for to 90% of its market value; then you can buy your next property and list your house while keeping all the profits for a 1% fee, which is very low for the service being provided.

If you need to sell your home and buy a new one, here are three key questions that you should consider before starting the process:

1. Can you afford two mortgages? If possible, most people choose the buy first, then sell option. However, qualifying for two mortgages at once is difficult and can add a lot of stress to your situation. If you can carry both payments for a few months, you’ll have plenty of time to find a new home while also preparing your current property to sell for top dollar. If you can be that flexible, we need to have a conversation about your goals.

"The right option for you depends on your particular situation."

2. What type of home are you buying? If you have a specific neighborhood or school district that you’re targeting like Arcadia, you can’t always afford to sell first from a timing perspective. You might need to make a contingent offer, use a bridge loan, or take out a home equity line of credit. It might be worth it to secure your dream home. If you don’t have a super-specific wish list for your next home and have a bit more flexibility, selling first might make more sense for a multitude of reasons.

3. Do you want to move twice? Most people don’t, but you might not have a choice. If you need the money from your home sale to fund your subsequent purchase, you may have to find temporary housing while you search for your next property. With rent on the rise due to inflation, that’s not always the wisest move. On the other hand, depending on how high demand is in your specific price range, you may be able to negotiate a rent-back agreement with the buyer who purchases your home and avoid the dreaded double move. I have access to movers that will give you a very competitive rate. There are solutions we can find for every situation.

We’ve helped many clients in this situation, and we’d be happy to help you too. There is more than one way to sell before you buy and vice versa.

If you have any questions about your specific situation or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Three things people who need to buy and sell simultaneously must consider.