If you've lived in the same home for 20, 30 or even 40 years, deciding to move is one thing.
Figuring out how to move is another.
One of the biggest questions longtime homeowners face is:
Should I sell my current home before buying my next one?
There isn't one answer that works for everyone.
Selling first may give you a much clearer financial picture and eliminate the burden of owning two homes.
Buying first may give you time to move comfortably without trying to coordinate two transactions on the same day.
And sometimes there is a third option that works better than either extreme.
Before putting your home on the market—or falling in love with the next one—look at the entire move.
The goal isn't simply to sell one house and buy another.
The goal is to get from the home you have to the life you want with as little unnecessary financial and logistical stress as possible.
Why Selling First Can Make Sense
For many longtime homeowners, a substantial amount of their wealth is tied up in their current home.
You may own it free and clear.
Or you may have a relatively small mortgage compared with its value.
Either way, selling first tells you exactly how much money you have available for the next step.
That's important.
It's easy to look at an online home estimate and think:
“If I sell for $900,000, I'll have $900,000 to buy my next house.”
Not quite.
There may be a mortgage payoff, selling expenses, repairs, moving costs and other considerations.
What matters isn't simply the sale price.
It's your net proceeds.
Once the current home closes, that number is no longer theoretical.
Selling First Can Also Strengthen Your Next Purchase
If you need the proceeds from your current home to purchase the next property, selling first can simplify the financing.
Instead of making an offer that depends on selling your existing home, you may be able to approach the next purchase with your current property already sold.
Depending on how you're purchasing the next home, that can make your financial position much clearer.
But there is an obvious problem.
Where do you live between the two houses?
And that's why this decision deserves more planning than simply saying, “Sell first.”
The Biggest Disadvantage of Selling First
You may have to move twice.
If your current home sells before you've found the next property, you may need temporary housing.
That could mean:
- a short-term rental,
- staying with family,
- extended-stay accommodations,
- or another temporary arrangement.
Your belongings may also need to go into storage.
For some people, that's perfectly manageable.
For others, the idea of moving an entire household into storage and then moving it again six weeks later sounds like a punishment invented by someone who has never moved.
If you've lived in the same house for decades, you probably have considerably more to move than someone leaving a two-bedroom apartment.
That matters.
What About Buying the Next Home First?
Buying first solves the temporary-housing problem.
You can purchase the next home, take your time moving and then prepare the longtime home for sale after you're out.
That can be especially attractive if your current house needs:
- painting,
- flooring,
- repairs,
- decluttering,
- an estate sale,
- or simply enough empty space to properly prepare it for the market.
Instead of trying to keep the home show-ready while living there, you can move first and deal with the old house afterward.
For some homeowners, that alone is worth a lot.
But Can You Afford to Own Two Homes?
That's the question.
Buying first may mean carrying both properties for some period of time.
Depending on your circumstances, that could include two sets of:
- mortgage payments,
- property taxes,
- insurance,
- utilities,
- HOA dues,
- and maintenance expenses.
If the longtime home is mortgage-free, carrying two properties temporarily may be manageable.
If both homes will have substantial mortgages, the calculation changes.
Before buying first, understand what several months of overlap would actually cost.
Don't build the plan around:
“My house will sell immediately.”
It might.
But your move should still work if it doesn't.
Don't Assume Your Longtime Home Is Worth What You Think It Is
This is an important step before deciding which home comes first.
If your plan depends on receiving $1 million from your current property, let's make sure $1 million is realistic.
Longtime homeowners sometimes have an unusual challenge when estimating value.
You know everything about your home.
You remember the kitchen remodel.
The new roof.
The landscaping.
The room addition.
The years you've spent maintaining it.
Buyers don't have that history.
They compare your home with the other properties available to them today.
Before making plans around the equity, get a realistic market evaluation.
Know Your Likely Net Proceeds Too
Market value is only the first number.
The second is what you may actually have available after the sale.
If you're planning to use those proceeds for your next home, retirement, investments or living expenses, this number matters enormously.
A preliminary seller net sheet can help estimate:
Likely sale price
minus
Mortgage and other liens
minus
Estimated selling and closing expenses
equals
Estimated net proceeds
It won't be exact until the transaction closes.
But it gives you a much better planning number than simply using the home's estimated value.
What If I Need the Equity to Buy My Next Home?
Then the timing becomes particularly important.
You may not be in a position to simply purchase another property while still owning the first.
That doesn't automatically mean you're stuck.
Depending on your financial situation, there may be financing strategies worth discussing with your lender or financial advisor.
Another possibility is coordinating the sale of your current property with the purchase of the next one.
But coordinated transactions require careful timing.
The more moving pieces involved, the more important it becomes to have backup plans.
Can I Sell My Home and Stay in It Temporarily?
Sometimes.
A seller may negotiate an arrangement allowing them to remain in the property for a limited period after closing.
The exact terms need to be negotiated with the buyer and properly documented.
That can potentially give a seller additional time to complete the move after receiving the proceeds from the sale.
It isn't guaranteed.
Some buyers need immediate possession.
Others may have financing or insurance considerations.
But when available, it can sometimes bridge the gap between selling one home and moving into another.
What About Making the Purchase Contingent on Selling My Home?
That may also be possible.
A purchase offer can sometimes be structured so that the buyer's obligation to complete the purchase depends on selling an existing property.
Whether a seller will accept that arrangement depends heavily on the property and current market conditions.
In a competitive situation, a seller may prefer an offer without that contingency.
In another market, it may be completely workable.
This is why the best sequence can change depending on where you're selling and where you're buying.
You may be leaving a slower market and buying in a competitive one—or the reverse.
What If I'm Downsizing?
Then I would look beyond the purchase price of the next home.
Downsizing does not always mean moving to a dramatically less expensive property.
You may be moving from a large older house to a smaller home in a more expensive community.
Or perhaps you're considering:
- a condo,
- a 55+ community,
- a single-story home,
- a property closer to family,
- or a home requiring less maintenance.
Look at the entire cost of ownership.
That includes property taxes, insurance, HOA dues, utilities and maintenance—not just the square footage.
A smaller home isn't automatically a less expensive home.
What If I'm Moving Out of California?
Now there are two real estate markets involved.
The market you're leaving and the market you're entering may behave completely differently.
You might be selling in Southern California and buying somewhere where homes cost substantially less.
In that case, selling first may give you tremendous flexibility.
Or you may be moving into a market with limited inventory where finding the right home could take months.
That could make temporary housing or buying first more attractive.
Don't build the strategy using only one side of the move.
Don't Forget the Tax Questions
If you've owned a home for many years, taxes may be an important part of the planning.
Depending on your circumstances, issues involving capital gains, your property's tax basis, California property-tax rules or the purchase of a replacement residence may deserve discussion with a qualified tax professional.
Those are not questions I want a homeowner discovering after the sale closes.
If taxes could materially affect the decision, get appropriate advice while you're planning the move.
Your Stuff Is Part of the Moving Strategy
After 30 years in a house, moving isn't simply a real estate transaction.
There may be an entire household to sort.
Furniture that won't fit in the next home.
Boxes that haven't been opened since 1998.
Family belongings.
Tools.
Collections.
And a garage that has quietly become its own independent nation.
You don't necessarily need to solve all of that before deciding whether to move.
But it belongs in the plan.
If buying first allows you to move gradually and sort the remaining belongings afterward, that may have real value.
If selling first is financially preferable, you may want to begin downsizing well before the property goes on the market.
Start With the Destination, Not the Listing
Before deciding whether to sell first or buy first, answer these questions:
Where do you want to go?
How quickly do you want to move?
Do you need the equity from your current home to buy the next one?
Could you comfortably own both properties for several months?
Would temporary housing be acceptable?
How much work is involved in preparing your current home?
How competitive is the market where you're buying?
Once we know those answers, the sequence usually becomes much clearer.
There May Be More Than Two Choices
This doesn't always have to be:
SELL FIRST
or
BUY FIRST.
Your plan might involve:
- selling and negotiating temporary occupancy,
- coordinating the two closings,
- selling and renting temporarily,
- buying first and selling afterward,
- using an appropriate financing strategy,
- or simply waiting until the right next property becomes available.
The best plan is the one that works financially and practically for you.
You Don't Have to Put Your House on the Market to Start Planning
This is probably the most important part.
You can find out what your longtime home is worth before deciding to sell it.
You can estimate your likely net proceeds.
You can discuss what the house might need before marketing.
You can look at potential replacement homes.
And you can compare different moving scenarios.
None of that commits you to putting a sign in the yard.
At Midas Realty Group, our Senior Elite approach is designed for longtime Southern California homeowners who want to understand their options before making a major move.
If you're trying to decide whether to sell first, buy first or do something in between, we can start with an Options Review.
We'll look at the current home, the likely equity, where you're considering moving and the practical issues involved in getting from one home to the next.
The first decision doesn't have to be whether to list your house. The first decision can simply be figuring out what your choices are.
Please click the button below to complete an options review and an inherited property and probate specialist will contact you ASAP. If you are browsing during business hours and require immediate attention, please feel free to contact our Broker direct by sending a text or calling Dawn at 714-932-1746
California probate procedures, disclosure requirements and the authority of a personal representative depend upon the particular estate and circumstances. Decisions involving estate funds and administration should be discussed with the estate's probate attorney or other appropriate professional. This article provides general real estate information and is not legal, tax or financial advice.
SENIOR HOMESELLING INFORMATION
Should I Sell My Longtime Home Before I Buy My Next One?
My House Needs Updating, but I Don’t Want to Remodel Before I Sell
