Should You Sell Before Buying? What to Know
One of the biggest decisions homeowners face when planning their next move is whether to sell their current home before buying a new one. While there’s no one-size-fits-all answer, understanding the pros and cons of each approach can help you make a decision that fits your financial goals, lifestyle, and comfort level.
Selling First: Access Equity, Reduce Risk
Selling your current home before buying gives you clarity — you’ll know exactly how much equity you’re working with and can use the proceeds as a down payment on your next property. This approach also eliminates the risk of carrying two mortgages at the same time, which can strain your finances.
But the downside? You may need temporary housing while you search for your new home. This can mean moving twice, dealing with storage, and navigating the stress of short-term leases or living with family.
Buying First: More Flexibility, More Complexity
Buying your next home before selling your current one allows for a smoother, more controlled move. You can shop without pressure and move on your own timeline. However, it can be harder to qualify for a new mortgage while still paying the existing one — especially if your debt-to-income ratio is tight. You’ll also need to cover two sets of housing costs until your current home sells, which isn’t always feasible without financial planning or assistance.
What Should You Do?
The right move depends on your financial situation, the housing market in your area, and your comfort with risk. In competitive markets, buying first may be necessary to avoid losing out on your ideal home. In slower markets, selling first might make more sense.
Your Employee Homeownership Program Can Help
Through your Employee Homeownership Program, you have access to resources that can make this decision easier — including one-on-one coaching, affordability planning, and even special loan options that may allow you to buy your next home before selling your current one.
They can help you weigh your options and identify the strategy that minimizes stress and maximizes financial confidence.
Find the Best Path Forward
Schedule your free planning consultation today to explore your options with a Homeownership Advisor. They’ll help you build a game plan that fits your goals, timeline, and financial situation — and support you every step of the way.
SupportSquad@AdvantageHomePlus.com | (800)511-2197
The information contained and the opinions expressed in this article are not intended to be construed as investment advice. Advantage Home Plus 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.
Category: Home Sellers Selling a Home
