The answer might not be as simple as you think.
You've outgrown your home. Maybe the kids need more space, you're dreaming of a bigger kitchen, or you're simply ready for a home that better fits your lifestyle.
You've even started looking at homes online. Maybe you've found a few you love.
But there's one big question holding you back:
Do you have to sell your current home before you can buy your next one?
For many homeowners, this is where the excitement of moving turns into stress.
The good news? You may have more options than you realize.
Option 1: Sell Your Current Home First
Selling first is often the most straightforward approach.
Once your home sells, you can use the proceeds toward the down payment and closing costs on your next home.
Let's look at an example:
- Current home value: $600,000
- Remaining mortgage balance: $300,000
- Gross equity: $300,000
That's potentially a substantial down payment toward your next home, although selling expenses and other costs will reduce the amount you actually receive.
Selling first also means you may avoid carrying two mortgage payments simultaneously.
But here's the challenge: What happens if your home sells before you've found your next one?
Nobody wants to pack up their entire life only to move into temporary housing while searching for another home.
Fortunately, there are ways to manage that timing.
How Can You Sell Without Ending Up Between Homes?
There are several strategies worth discussing with your real estate agent and mortgage professional.
1. Negotiate a rent-back agreement.
Your buyer may agree to let you remain in the property for a specified period after closing, giving you additional time to purchase your next home.
2. Coordinate both closings.
With careful planning, you may be able to sell your existing home and close on your new home on the same day or within a few days of each other.
3. Make your sale contingent on finding a replacement home.
Depending on market conditions and the buyer's willingness, you may be able to negotiate a contract that gives you time to secure your next property before completing the sale.
Each strategy requires planning, and none is guaranteed. But they can help make the transition considerably smoother.
Option 2: Buy Your Next Home Before Selling
Here's something many homeowners don't realize:
You may be able to purchase your next home before selling your current one.
Depending on your equity, income, available assets, and mortgage qualifications, there may be financing options that allow you to buy first and sell later.
These could include accessing your existing home equity, specialized buy-before-you-sell financing, or using available savings and applying the proceeds from your home sale afterward.
Imagine being able to find the right home, move in, and then prepare your current property for sale without the pressure of coordinating everything on the same day.
For some homeowners, that flexibility can make a tremendous difference.
Of course, buying first isn't right for everyone. You may need to qualify while carrying both properties, and certain financing strategies involve additional costs.
That's why it's important to understand your numbers before making an offer.
So, Which Strategy Is Better?
There isn't one right answer.
Selling first may make sense if you need the proceeds from your current home to qualify or want to avoid carrying two mortgage payments.
Buying first may be worth exploring if you have substantial equity, sufficient income, or assets that provide flexibility.
The biggest mistake is assuming you have to sell first without exploring your options.
Your Next Move Starts With a Plan
At Golden Summit Mortgage Group, we specialize in helping move-up buyers understand their options before they make major decisions.
We'll help you evaluate your current home equity, potential down payment, financing options, and what your next monthly payment could look like.
Whether you sell first or buy first, the goal is the same: move into the home you really want with a financial strategy that makes sense.
Thinking about making a move?
Contact Alicia Kirby at Golden Summit Mortgage Group for a personalized Move-Up Buyer Plan.
Alicia Kirby
Golden Summit Mortgage Group
720-210-8748
aliciak@goldensummitmg.com
