Should I buy before I sell?

Buying or selling a house can be a monumental task. Doing both at the same time takes the complexity to a whole new level.

If you’re buying and selling a house at the same time, you’ll need to navigate a hot seller’s market as both the seller and buyer. You’ll benefit from a seller’s market on the one hand, but could also face challenges as a buyer. 

With fewer homes for sale than there are buyers, there is greater urgency and competition in the market. However, there are signs the housing market is beginning to cool down

There’s no way to make the process of buying or selling a home totally predictable, but thinking through your preferred strategy will help you navigate the ups and downs a little bit more easily.

While you can’t control the market, you can plan ahead to minimize the impact of any potential challenges that may arise. 

Here are some expert tips to address some of the questions that could arise when buying and selling your home at the same time.

Advice for Buying and Selling at the Same Time

When buying a new home and selling an old one at the same time, one transaction always goes first. Sometimes one happens first due to personal preference, while other times, it’s a matter of finding the perfect home before you’re ready to sell. With such a hot market, each of these moves should be considered carefully and a qualified real estate agent can help strategize based on local market conditions.

No matter which path you choose, these expert tips can help you have a successful transaction and minimize the stress of buying and selling at the same time.

Buying a House Before Selling 

While some buyers are able to buy a new home without waiting to sell their current home, many don’t have that luxury. 

For people who need the proceeds from one sale to move forward with an offer on a new house, that’s where an offer contingency comes in. It essentially means the homebuyer has a set amount of time to sell their current home to help finance the new home purchase. While “contingent offers are not as strong,” there are still ways you can help yourself, says Shelby Osborne, CEO of Five Pillars Team at eXp Realty in Charlotte, North Carolina.

For homebuyers who plan on making a contingent offer, consider the following:

Pros of Buying First

Cons of Buying First

Selling a House Before Buying

In some cases, it will make sense to sell your home before you have your next move in mind. “Some sellers are selling and moving into a rental property or leasing back from the buyer” to lock in profits and cash out their equity before deciding on their next move, says David Lee, owner of the David Lee Group with Keller Williams in Yorba Linda, California. Some sellers are waiting for lower prices before buying again. Others are considering moving to a lower-cost area.

If you’re planning to sell your house before buying a new one, keep these tips in mind:

Pros of Selling First

Cons of Selling First