Should You Buy Before Selling Your Home?

One of the most common questions homeowners ask is: Should I buy a new home before selling my current one? The answer depends largely on whether you need the equity from your existing home in order to purchase your next home.

For many homeowners, the equity in their current property is needed for the down payment on the next home. In that case, it often makes more financial sense to put your current home on the market first.

The good news is that selling first doesn’t necessarily mean you’ll have to move twice.

What Is a Rent-Back Agreement?

A great solution many sellers use is called a rent-back agreement. This allows you to stay in your home for a negotiated period of time after closing, while paying rent to the new buyer.

This gives you extra time to:

• Search for your next home
• Negotiate your purchase carefully
• Move only once instead of twice

It can make the entire transition much less stressful.

A Major Advantage: Stronger Purchase Offers

Another benefit of selling first is that when you find your next home, you can write an offer without making it contingent on the sale of your current home.

In competitive markets, non-contingent offers are often much more attractive to sellers and can give buyers a stronger negotiating position.

Every Situation Is Different

Some buyers prefer to purchase first if they have enough savings or financing options available. Others feel more comfortable selling first so they know exactly how much equity they’ll have to work with.

The key is having a plan that fits your financial situation, timeline, and comfort level.

After 29 years in real estate, I’ve helped many clients successfully coordinate both the sale of their current home and the purchase of their next one — with as little stress as possible.