Which Comes First: Selling a Home or Buying a New One?

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• Should You Put Your House on the Market Before Buying Another? •

If you’re planning to buy a new home, you are likely dreaming about the style of house you want, how to decorate, the new neighborhood & more. But perhaps one of the most important questions you should ask is, which comes first?

Selling your home or buying a new one?

Deciding whether to buy or sell your home first is a big decision and depends on several factors. Buying and selling a house at the same time can be tricky — if you buy before you sell, you will need to qualify for two mortgages at once. But selling before you buy means that you may have to move twice in a short period.

If you’re wondering whether to buy or sell your house first, you are not alone. Read on to determine the best way to sell and buy for your situation.

Is It Better to Buy or Sell Your Home First

Benefits of Selling Your House Before You Buy

For many people buying and selling a house, selling their home to buy another can be a practical solution; however, it is not always the most convenient. Buyers often choose to sell first in a buyer’s market since they know it may take longer to sell. Selling first can be helpful if you need to access your equity to purchase a new home.

Some of the benefits of selling your house before you buy include:

  • You can avoid a rushed home sale. Selling your home first allows you the luxury of time, giving you the ability to wait for the offer that you really want. If you are selling first, you can take your time through the sale without the added pressure of knowing that you have already purchased another home.
  • You can make a stronger purchase offer. Selling your home first gives you access to the equity in your current home, which you can add to your purchase offer when you are ready to buy. This can be especially helpful in a seller’s market, where a competitive offer can help you win the home you want.
  • You know the profit from your sale. Knowing the exact gain from the sale of your home can be helpful when you are looking to purchase a new home. If you choose to sell your home first, you will be able to budget around the actual sale proceeds and use them toward your next purchase.
  • You only have to pay one mortgage. Perhaps the most significant benefit of selling your home first is that you only have to pay one mortgage. Getting a mortgage on each of two separate homes isn’t impossible, but it does require meeting all income and debt-to-income ratio guidelines.

Benefits of Buying Your House Before You Sell

Of course, there are situations when it makes sense to buy your new house before you sell. If you can afford to pay two mortgages at once, buying your new house before selling could help avoid multiple moves. However, you may find yourself rushing through your home sale, potentially accepting a lower offer or agreeing to more concessions than you would otherwise.

Some of the benefits of buying your house before you sell include:

  • You can avoid a rushed home purchase. Because you haven’t sold your home or listed it on the market yet, you can prevent a rushed purchase and take your time searching for the right home. If it takes longer than expected to find the home that’s right for you, you don’t have to risk spending any time in rental or temporary housing.
  • You can buy the home you want. If you have been working with a local real estate agent who is sending you listings, there’s a good chance that you’ve already found a home that you love. If you have to wait for your home to sell first, you risk losing out on the home you want to another buyer.
  • You are in charge of your moving timeline. Buying a home before you sell allows you to better time your move, allowing you to avoid the stress of trying to time a sale and purchase. Buying a home first gives you enough time to organize, pack and move without additional stress.
  • You only have to move or relocate once. Rather than selling your home and moving into a rental or temporary housing until you can buy your new home, buying a home first allows you to speed up this process. You can move directly into your new home and then list your old home after you’ve moved in.

How to Effectively Buy and Sell at the Same Time

What if there was a different way to sell and buy a house? Good news: there is. Reali’s Buy Before You Sell program is an excellent option for people who want to buy first and sell later — but with all the benefits and without the risks.

If you’re buying and selling at the same time, why do it the hard way? Buy Before You Sell allows you to sidestep the competition and use our capital to make a cash offer on a house faster and easier than ever before. Then, we’ll help you sell your old home for top dollar.

Here’s how it works:

  1. Get pre-approved. Fill out a mortgage application online, and we can discuss your home loan options together.
  2. Find your new home. Browse new listings with the Reali App and tour homes with our local real estate agent.
  3. Win the home and move in. Once you find a home you love, we will make an all-cash offer on your behalf.
  4. We sell your former home. We help you get your home looking its best and sell it for top dollar.
  5. Buy your new home back from us. Lastly, you will close on your new home by repurchasing it from us.
The Bottom Line

Call us at (858) 880-0195 or email portia.green@reali.com to get started with Reali today.

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About The Author
Portia Green, REALTOR®

Portia Green is a highly experienced full-time REALTOR® specializing in the representation of Sellers, heralded by her clients as data-driven and an effective negotiator. Producing $25M total in residential sales volume, Portia's goal is to help her clients achieve the best results when selling their homes and to make their experience an enjoyable one. She has successfully sold real estate since 2008 and has gained an in-depth knowledge of local real estate markets & seasonal trends. Portia has achieved a 100% customer satisfaction rating and wants to share her expertise & personal service with you in the sale of your home. When listing your home with Portia Green and Compass, you'll receive the hands-on service you need and desire. Portia will help you manage the entire process of selling your home from pricing, preparing and staging the house, to marketing, negotiating offers, inspections, all the way to closing. She will recommend skilled vendors for any job needed, personally host Open Houses, and ensure that all showings are accompanied. At Compass, Portia offers a wise no-nonsense way to sell your home for the best price and the least hassle. With a keen eye for staging & preparing listings to maximize Buyer appeal, all of Portia Green's listings are professionally photographed using HDR (High Dynamic Range) photography to provide the highest quality photos in the industry. Professionally printed marketing materials are prepared for all Open Houses. We also capture a 3D scan of your home that creates an interactive walkthrough online along with a custom-designed floor plan and targeted digital marketing campaigns on Google & the most popular social media channels. Compass participates in the Multiple Listing Service, which is the local real estate database of homes listed for sale that all REALTORS® use in helping their Buyers find houses. Your home will appear on every real estate website, in its best light, making a stunning camera-ready debut. Portia Green's home valuation expertise and extensive experience in comparative market analysis will help price your home accurately. She has refined her skills to help you pinpoint which features of your home will result in more showings and better results. Her mantra is for you to be ready to sell your home and feel good about that first. Portia knows that home inspectors always find a problem; that drones take some of the best photos in town; and that her eyebrows will grow to the floor in the time it takes her to read everything that's happening with your HOA, but that doesn't mean she won't do it anyway. Eyebrows be damned. You'll always need a place to unplug, connect, dream, grow, or just be yourself. That makes what Portia does even more meaningful. She’s ready to go the extra mile to help you find just the place. Whether you're selling your very first home, offloading an investment property, or want a vacation getaway with passive income, she is attentive to the details of every home sale. Portia helps busy people navigate this crazy real estate market like a pro, so don't be shy. Every great relationship starts with free advice and a friendly chat. Ask as many questions as you need to. Selling houses is her jam! www.portia.realtor