Sell First or Buy First?

The Sell-First Strategy

Selling your current home before buying the next one is the lowest-risk financial move. You know exactly what you have before you commit to the next purchase.

Pros:

• No risk of carrying two mortgages
• You know your exact net proceeds before shopping
• Stronger buying position — no home sale contingency needed
• Less stress during the purchase process

Cons:

• You may need to move twice (into temporary housing, then into new home)
• Temporary housing costs money — storage, rent, or hotel
• You're buying in a market you don't control — prices may rise while you wait

Making it work: Negotiate a rent-back agreement with your buyer — you sell the home but continue living in it for 30–60 days while you close on the next purchase.

The Buy-First Strategy

Buying your next home before selling the current one means you never move twice. But it requires either strong cash reserves or a bridge loan.

Bridge loans explained: A bridge loan is a short-term loan (typically 6–12 months) secured by your current home that gives you the funds to close on the next purchase before your home sells.

• Interest rates: typically prime + 1–2% (currently 8–10%+)
• Origination fees: 1–2% of loan amount
• Example: $200,000 bridge loan at 9% for 6 months = ~$9,000 in interest + fees

The risk: If your current home takes longer to sell than expected, you're paying two mortgages plus bridge loan interest. Have a clear plan and a realistic market timeline.

Who it's right for: Buyers with significant equity and strong cash flow. Competitive markets where the right home needs to be purchased immediately. Markets where your current home will sell quickly.