Looking to Sell AND Buy?
If you’re thinking about selling your home and buying another, the order in which you make your moves can have a big impact on your finances, stress level, and even your success in landing a new property. Here’s a guide to selling before you buy, with SEO-optimized insights for Portland home sellers.
Options for Selling and Buying
When you’re ready to move, you have several paths:
Sell first, then buy.
Buy first, then sell.
Attempt to buy and sell simultaneously.
This article focuses on the pros and cons of putting your home on the market first—and key strategies to make that process work smoothly.
Pros of Selling Your Home First
Financial Clarity & Power: Selling your home first gives you a clear budget for your next purchase. You’ll know exactly how much you have for a down payment and avoid the stress of juggling two mortgages.
Negotiating Advantage: With proceeds in hand, you may be in a stronger position to negotiate price and terms on your new home.
No Double Mortgage Payments: You won’t have to worry about paying for two homes at once—no need for risky bridge loans or other temporary financing.
Cons of Selling Your Home First
Temporary Housing Needs: If you haven’t lined up a new home, you may need temporary housing or short-term rentals, which adds cost and hassle.
Pressure to Find Next Home: The urgency to move forward can lead to rushed decisions or settling for a home that isn’t perfect.
Two Moves: Most likely, you’ll need to move twice—once out of your old home and again into your new property.
Handling the Timing: Detailed Options
Rent-Back Agreement: When selling, negotiate a rent-back period. This allows you to stay in your home for a short time after closing, giving you extra breathing room to buy.
Contingent Offers: In some cases, you can make the purchase of your new home contingent on the closing of your current sale. However, in competitive markets, this weakens your offer compared to buyers with no contingencies.
Coordinate Closings: Work closely with your agent to coordinate closing dates—ideally, sell one day and buy the next to avoid being between homes.
Temporary Housing & Storage: Have a plan for storage and interim housing, such as renting a furnished apartment or staying with family.
Best Practices for Maximizing Success
Talk to your real estate agent about average days on market and inventory levels in your neighborhoods.
Consider your risk tolerance, finances, and flexibility.
Get pre-approved for your next mortgage before you list.
Time your listing and purchase in seasons where inventory suits your needs (spring and summer often have more homes).
