Sell First

Selling first means you buy your next home with your equity in hand and a firm number to work from. Your offer is stronger because it doesn’t depend on anything else.

 

It fits best when you need the equity for your next down payment, when the homes you want draw competing offers, or when carrying two homes isn’t an option.

 

The trade-off is where you live in between. Some sellers negotiate a later possession date with their buyer, some rent short-term, and some stay with family for a few weeks.

Buy First, With a Contingent Offer

You make an offer on your next home that depends on your current home selling or closing. You move once, and you don’t carry two payments.

 

It works best when your home is already listed or under contract, or when the home you want has been on the market a while. Some sellers accept it with a clause that lets them keep marketing their home.

 

The trade-off is a weaker offer. When a seller has a choice, an offer without a contingency often looks stronger, so this path works best when your home is ready to sell quickly.

Buy First, Using Your Equity

A home equity line of credit or a bridge loan covers the down payment on your next home, and you pay it off when your current home sells. You can make a clean offer and move once.

 

It fits when you’re comfortable carrying two payments for a while and your lender approves you to do it.

 

The trade-off is cost and timing. You’ll pay interest until your home sells, and many lenders won’t open a home equity line on a home that’s already for sale, so it needs to be set up before you list.

How to Choose the Right Order

Most of the decision comes down to three questions:

 

• What is my home likely to sell for, after costs?

• What will I need for the next one, both the down payment and a monthly payment I’m comfortable with?

• How long could I carry two homes, if at all?


Those answers usually make the order clear. When they don’t, I start with the first question, because everything else depends on it.

What to Have Ready

• A real number for your current home, based on recent sales near you

• A lender pre-approval that accounts for your sale and tells you whether your equity can count toward the next purchase

• A plan for where you’d go if your sale closes first

 

More detail on contingencies, equity and timing is in my Buyer FAQ.