The Hidden Advantage of Selling Before Buying

If you’re a homeowner planning to move, you’re probably wondering what the process is going to look like and what you should tackle first. Should you start by finding your next home, or focus on selling your current one? The idea of selling before buying is becoming more common, especially in today’s market where timing and finances matter more than ever.

Ultimately, what’s right for you depends on a lot of factors. And that’s where an agent’s experience can really help make your next step clear.

They know your local market, the latest trends, and what’s working for other homeowners right now. Based on their expertise and your unique needs, they can guide you through the best path forward. But here’s a sneak peek: in many cases today, selling before buying can put you in a stronger position. Here’s why that order tends to work best and how an agent can help you make the most of it.

The Advantages of Selling Before Buying

1. You’ll Unlock Your Home Equity

Selling your current home before you try to buy your next one allows you to access the equity you’ve built up – and based on home price appreciation over the past few years, that’s no small number. Data from Cotality (formerly CoreLogic) shows the average homeowner is sitting on $302K in equity today. And once you sell, you can use that equity to pay for the down payment on your next house (and maybe even more). You could even have enough to buy your next house in cash. That’s a big deal, and it’s one reason why selling before buying can make your next move a whole lot easier on your wallet.

2. You Won’t Be Juggling Two Mortgages

Trying to buy before you sell means you could wind up holding two mortgages, even if just for a few months. That can get expensive, fast – especially if there are unexpected repairs or delays. Selling first removes that stress and helps you move forward without the financial strain. As Ramsey Solutions says:

It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.

3. You’ll Be in a Stronger Position When You Make an Offer

Sellers love a clean, simple offer. If you’ve already sold your house, you don’t need to make your offer contingent on that sale, and that can help you stand out. Selling before buying puts you in a stronger position from the start. Your agent can position your offer to be as strong as possible, so you have the best shot at getting the home you want. This can be a big advantage in competitive markets where sellers prefer buyers with fewer strings attached.

One Thing To Keep in Mind

But, like with anything in life, there are tradeoffs. As you weigh your options, consider this potential drawback, too:

1. You May Need a Place To Stay (Temporarily)

Once your house sells, you may need a short-term rental or to stay with family until you can move into your next home. Your agent can help you negotiate things like a post-closing occupancy (renting the home from the buyer for a set period) or flexible closing dates to help smooth out that transition as much as possible.

Here’s a simple visual that can help you think through your options (see below):

But the best way to determine what’s best for you and your specific situation? Talk to a trusted local agent.

Bottom Line

In many cases, selling before buying doesn’t just give you clarity, it gives you options. It helps you move forward with more confidence, greater financial power, and less pressure during the buying process.

If you’re ready to make a move but you’re not sure where to begin, let’s talk. We can walk through your potential equity, your timing, and your local market conditions so you can decide what’s right for you.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Jess & Co. Real Estate, LLC does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Jess & Co. Real Estate, LLC will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.