How Do You Buy a Home When You Have One to Sell?

One of the biggest things keeping homeowners from moving is not necessarily the market, interest rates or even finding the next house.

It is figuring out how to sell one home and buy another without making a mess of the timing.

Do you sell first and hope the right house comes along? Buy first and temporarily own two homes? Make your purchase contingent on selling your current home? What happens if your house sells quickly but you have not found anywhere to go?

There is no one answer that works for everyone. The better place to start is figuring out which risks you are comfortable with and which ones you are not. Once we know that, we can usually build a plan around it.

Should You Sell Your Current Home First?

Selling first gives you something very useful when you are shopping for your next home: certainty. You will know what your home sold for and how much equity you have available for the next purchase. You also will not have to qualify for two homes at the same time.

And when you find the next house, your offer may be stronger because it is not dependent on selling your current home.

The concern is pretty obvious. What happens if your home sells before you find the next one?

That does not automatically mean moving twice. Depending on the situation, we may be able to coordinate the closings closely or negotiate some extra possession time after closing. Sometimes temporary housing makes more sense. If your next home is something very specific or difficult to find, however, selling first may create more pressure than you are comfortable with.

Is It Better to Buy the Next Home First?

If you can financially buy your next home without selling your current one first, this can make the physical move much easier. You find the right house, close, move and then prepare and sell your current home.

There is much less concern about coordinating everything on the same day, and it can be easier to prepare your current home for sale once you are no longer living there.

The question is whether it works financially. You may temporarily have two mortgage payments. You also may need equity from your current home for the down payment on the next one.

That is why I like to involve a lender before we start seriously looking at houses. There may be financing options that help bridge the gap, but we need to understand what is realistic before you find a house you want.

Can You Make an Offer Contingent on Selling Your Current Home?

Yes, and this is one of the most common questions I get from homeowners who need to sell before they buy.

A home sale contingency basically means you are agreeing to buy the next home as long as your current home sells. These offers can absolutely work, but they are not all viewed the same way by sellers.

If your current home is not even listed yet, the seller of the next house is taking on quite a bit of uncertainty. Your home still needs to be prepared, listed, marketed, put into contract and successfully closed. If your home is already under contract with a solid buyer, that is a very different situation.

The market for the house you are trying to buy matters too. If the seller has several offers, they may favor one that does not depend on another home selling. If the property has been sitting on the market, they may be much more willing to consider a contingency.

What If You Do Not Want to List Until You Find the Right House?

That is another option, and sometimes it makes the most sense. We can do quite a bit of work on your current home before it ever goes on the market.

That might mean deciding what needs repaired, meeting with a stager, decluttering, painting or taking care of smaller projects so we are not starting from scratch once you find the next house.

Before spending money, it helps to understand what adds the most value before selling your home. The biggest project is not always the one buyers care about most.

You can also begin watching the market before listing your home. That gives you a better idea of how frequently homes that fit your criteria actually become available.

If you are still deciding where you want to move, my guide on how to choose the right Central Ohio community can help you think through location, property taxes, school districts, maintenance and other factors before narrowing the search.

The more prepared we are on both sides of the move, the more options we have.

Can You Stay in Your Home After Closing?

Sometimes. This is commonly called post-closing possession. You sell the home and close, but the buyer agrees to let you remain in the property for an agreed period of time.

It can give you some breathing room between the sale of your current home and the purchase of the next one. But I do not like building an entire moving strategy around the assumption that a buyer will agree to it.

The buyer's circumstances matter. They may need to move in immediately. Their lender or insurance company may also have requirements that affect the arrangement. It can be a useful option, but it is one piece of the plan rather than the entire plan.

Do Both Closings Have to Happen on the Same Day?

No, and sometimes trying too hard to make that happen creates unnecessary stress.

Closings can sometimes be coordinated closely enough that the proceeds from your sale are available for your next purchase. Other times it makes more sense to leave a little space between them.

There are a lot of moving parts. Inspections, appraisals, financing, title work and the other buyer's transaction can all affect timing.

Sometimes the Best Strategy Uses More Than One Option

Homeowners sometimes approach this decision as though there are only two choices: sell first or buy first. Usually there are more.

We might prepare your home so it is ready to list as soon as you find the next one. We might start watching homes before yours goes on the market. We could sell first and negotiate extra possession time. We might use a home sale contingency, but wait until your current home is already under contract before making the offer.

There is not a formula I use for every homeowner. What I do not want to do is figure all of this out after you have found a house you love. That is when people start making decisions under pressure.

What Should You Figure Out Before You Start Looking?

If you are thinking about moving within the next year, I would start with three things:

1. Approximately what is your current home worth? This gives us a reasonable idea of how much equity you may have available for the next purchase.
2. Could you qualify to buy before you sell? A conversation with a lender can tell us what is realistic and what financing options might be available.
3. Which situation would make you more uncomfortable? Carrying two homes temporarily or selling your current home without knowing exactly where you are going?

That third question may sound simple, but it tells me quite a bit about how we should structure the move.

If selling is going to be part of the plan, pricing and preparation also matter. The first ten days your home is on the market often shape the rest of the sale.

Starting too high can make an already complicated move harder because the current home may take longer to sell. If you are tempted to price high and negotiate later, it is worth understanding what overpricing your home can actually cost.

Price is not the only factor. Condition, presentation and competition matter too, which is why some Central Ohio homes sit while others sell quickly.

What Should You Consider About the Home You Are Buying?

Once you figure out how you are going to make the move, it is worth thinking carefully about what you are buying.

Your next home needs to work for you now, but someday you will probably need another buyer to want it too. Location, lot, layout and nearby features can all affect resale.

Before buying, take a look at how to buy a home with great resale value. It is something I think buyers should consider before they fall in love with a house rather than after they have purchased it.

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Planning a Move in Central Ohio?

You do not have to know exactly when you are moving before you start figuring this out. In fact, earlier is usually easier because we have more options and less pressure.

A good first step is understanding approximately what your current home is worth and what that gives you to work with. From there, we can talk through whether selling first, buying first or combining a few strategies makes the most sense.

If you are still deciding who you want helping with the sale, it may also help to read how to choose the right real estate agent to sell your home.

Selling one home and buying another has a lot of moving parts, but it does not have to feel overwhelming. The goal is not to make every date line up perfectly. It is to have a plan when they do not.

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Frequently Asked Questions About Buying and Selling at the Same Time

Rita Boswell Group, Real of Ohio