Should You Buy a New Home Before Selling Your Old One?
POV: You’re a homeowner thinking about downsizing, upsizing, or relocating to a new area. Your biggest dilemma now? Whether to sell your current home first or take the leap and buy your next property before listing your existing one.
It’s a common crossroads in real estate. Selling first provides financial certainty, while buying first ensures you don’t miss out on your dream home in a competitive market. Both strategies carry benefits and risks, but if you’re curious about what it really means to purchase before selling, this blog will walk you through the key pros and cons.
Why Buyers Consider This Approach
This strategy isn’t unusual, particularly when someone finds their ideal home before their current one has sold. In fast-moving markets, waiting can mean losing out, so many homeowners consider buying first as a way to secure the property they want. Still, it requires careful planning, an understanding of local housing trends, and, most importantly, a clear picture of your financial situation.
Benefits of Buying Before Selling
1. Seamless transition without temporary housing
Buying first means you can move straight into your new home without arranging short-term housing. This avoids the costs and stress of a double move, deposits, and temporary utility setups.
2. Flexibility and convenience
You can transition at your own pace without keeping your old home constantly “show-ready” for potential buyers. This is especially helpful for families, long-distance relocations, or anyone with unique needs.
3. Time to make thoughtful decisions
Buying first allows you to explore the market without rushing. You can also make necessary repairs or updates to your current home to boost its value before selling.
Drawbacks of Buying Before Selling
1. Carrying two mortgages
Owning two properties at once can be financially demanding. If your old home lingers on the market, the double mortgage payments may stretch your budget.
2. Financing challenges
Lenders may be stricter if you’re already paying one mortgage. A higher income, stronger credit profile, and better debt-to-income ratio may be required to qualify for another loan.
3. Weaker purchase offers
If your new offer includes a home sale contingency, some sellers may view it as less attractive than offers from buyers without contingencies.
4. Pressure to sell quickly
Managing two homes may push you to accept a lower offer on your old property, especially if the market shifts unfavorably after you buy.
Buying Before Selling: Is It Right for You?
The question remains: should you buy before you sell, or follow the conventional path of selling first? The reality is that there’s no universal answer. The right decision depends on your financial strength, current market conditions, your risk tolerance, and your personal timeline.
If you’re leaning toward buying first, it’s wise to work with a knowledgeable real estate agent. An experienced professional can help you create a plan that reduces risks, positions your offers competitively, and ensures your move aligns with your financial goals.