How to Buy a Home Before You Sell: A Guide for Subject to Sale Offers   If you're a current homeowner looking to make a move, one of the biggest questions you might be asking yourself is whether you should buy a new home first or sell your current one. This is a common dilemma for homeowners, and the answer is not always straightforward. The right decision depends on a number of factors, including the current real estate market, your financial situation, and your risk tolerance. In this post, we'll break down the factors you need to consider when deciding whether to buy or sell first. We’ll also introduce a third option: doing both simultaneously using a subject-to-sale offer. By the end of this post, you’ll have a clearer idea of which strategy works best for you. The Market Matters: Buying in an Uptrending Market vs. Selling in a Downtrending Market Typically, in a rising market, it makes more sense to buy first. Why? Because as prices rise, you’ll want to secure your new home at a lower price today rather than paying more in the future. Additionally, by the time you sell your current home, it’s likely that the market will have continued to trend upwards, meaning you’ll be able to sell at a higher price later on. On the other hand, in a downtrending market, you’ll want to sell first. This strategy ensures you get the highest possible price for your current home. After selling, you can then wait for prices to drop further, allowing you to buy a new home at a lower price. Selling first also ensures you know exactly what your budget is for your next purchase, avoiding any financial surprises. However, markets don’t always move predictably, and each homeowner's situation is unique. Let’s take a deeper look at the pros and cons of each approach. Pros and Cons of Buying First Advantages of Buying First: Flexibility: If you buy before selling, you have more flexibility in your timeline. You won’t feel rushed to find a new home after selling your current one. No Missed Opportunities: You can act immediately if your dream home hits the market. You won’t risk losing out because you’re waiting to sell. Less Pressure on Timing: If you haven’t sold yet, you can be more relaxed about finding the perfect home rather than making a rushed decision. Disadvantages of Buying First: Uncertainty in Selling: You don’t know for sure how much your current home will sell for or if it will sell quickly. This could lead to financial strain if your home doesn’t sell in time. Financial Risk: Buying first may mean carrying two mortgages at once or relying on bridge financing to cover the gap, which can be costly and stressful. Pros and Cons of Selling First Advantages of Selling First: Know Your Budget: Once your home is sold, you know exactly how much money you have to work with, making it easier to set a realistic budget for your next home. Less Financial Risk: Selling first eliminates the risk of carrying two mortgages. You won’t have to rely on bridge financing or other costly short-term solutions. Easier Negotiation: When you sell first, you can make stronger offers on new properties without needing a "subject to sale" clause, making your offer more attractive to sellers. Disadvantages of Selling First: Limited Options: If your dream home comes on the market before your current home sells, you may not be able to make an offer in time. Moving Twice: If you can’t find a new home immediately after selling, you may need to find temporary housing, which could be inconvenient and expensive. A Third Option: Buying and Selling Simultaneously with a Subject-to-Sale Offer If you’re looking to minimize the risks of buying and selling at the same time, you can consider a subject-to-sale offer. This strategy allows you to make an offer on a new home, contingent upon the sale of your current home by a certain date. Here’s how it works: Advantages of a Subject-to-Sale Offer: Align Your Timelines: A subject-to-sale offer helps you line up the sale of your current home with the purchase of your new one, reducing the chances of needing to move twice or take out bridge financing. No Rush: You can secure a new home while taking your time to sell your current property, avoiding the panic of being "homeless" in between. Disadvantages of a Subject-to-Sale Offer: Less Attractive to Sellers: Sellers may be hesitant to accept a subject-to-sale offer because it ties up their home for an extended period, with no guarantee that your home will sell. This means you may need to offer close to or even above the asking price to make your offer competitive. Bump Clause Risk: A subject-to-sale offer often comes with a bump clause, which allows the seller to accept a backup offer from another buyer. If a more attractive offer comes in, you could lose out unless you remove your subject to sale condition within 24–72 hours. Final Verdict: What’s the Best Option? While a subject-to-sale offer can work in certain situations, it does come with its own risks and challenges. In a hot market where homes are selling quickly, I often advise clients to sell first. This eliminates the stress of trying to sell a home while also managing a purchase, especially when prices are fluctuating. Selling first means you know exactly what you can spend and can make stronger offers when the right property comes along. However, in a fast-moving market where home prices are rising rapidly, you may want to buy first if you’re confident your home will sell quickly. This allows you to secure your next home before prices rise further. Ultimately, the right choice depends on your personal situation, the state of the market, and your comfort level with financial risk. Need More Help Deciding? Still unsure whether to buy or sell first? Let’s chat! I can provide personalized advice based on your unique situation and the current market conditions in your area. Scroll down and click the link below to book a call with me at a time that’s convenient for you. And if you found this post helpful, be sure to hit the thumbs-up button and subscribe to my blog for more real estate tips and community insights. Thanks for reading!

Should You Buy or Sell Your Home First? A Guide to Making the Right Decision One of the most common questions homeowners face is whether to buy a new home first or sell their current one. This is a tricky decision, and the right answer depends on several factors, including your financial situation, the state of the real estate market, and your personal risk tolerance. In this blog post, we’ll break down the pros and cons of both buying and selling first, so you can make an informed decision that suits your needs. Common Concerns: The Fears of Buying or Selling First Most people fear selling first because they worry about being unable to find a new home before they must vacate their current one. No one wants to face the possibility of being left homeless or having to rush into a purchase out of desperation. On the flip side, the concern with buying first is that you may not be able to sell your current home as quickly or for the price you expect. This could leave you financially stretched, paying two mortgages at once or relying on bridge financing to cover the gap. Both scenarios carry risks, but the best choice for you depends on your specific situation. Let’s explore the pros and cons of each. Reasons to Buy First 1. Lock in a Low Interest RateIn today’s market, interest rates are at historic lows, but they may not stay that way. If you buy first, you can lock in your mortgage rate for 90–120 days. This gives you the advantage of securing lower monthly payments for the long term. However, keep in mind that you need to complete the purchase within that timeframe to benefit from the locked rate. 2. Financial FlexibilityBuying before you sell gives you more flexibility with your finances. While it comes with the risk of having to carry two mortgages or use bridge financing, if you can comfortably afford it, this might be the right move. It also allows you to take your time selling your current home. 3. Quick Sale of Your Current HomeIf you know your current home is in high demand and will sell quickly, buying first can minimize the risk of being stuck with two homes. In a hot real estate market, you can reasonably expect your property to sell fast. 4. Competitive Market for Your Dream HomeIf the type of home you want to buy is in high demand with limited inventory, you might need to act fast. Waiting to sell your home first could mean missing out on your ideal property. Buying first ensures you have a place lined up, even if you have to compete in a multiple-offer situation. 5. More Options to Choose FromIf you’re a selective buyer who needs a wide range of options, buying first might be better. It allows you to take your time finding the perfect home without the pressure of needing to move out immediately. 6. Planning RenovationsIf you plan on making significant renovations to your new home, buying first gives you the option to complete those renovations before moving in. This prevents you from living through the disruption of construction and ensures you move into a fully finished home. Reasons to Sell First 1. Clear Timeline for Your MoveWhen you sell first, you know the exact dates for your sale’s completion and possession, giving you a solid timeline for when you need to buy and move into your next home. This can reduce the stress of lining up dates and help you avoid the need for bridge financing. 2. Set BudgetSelling first means you know exactly how much money you’ll have for your new purchase. Instead of estimating how much your home will sell for, you can confidently budget for your new home, eliminating the risk of overspending. 3. Backup Living PlansIf you sell first and haven’t found a new home, having a backup plan for temporary living arrangements—whether with family, friends, or a short-term rental—can ease the pressure. Knowing you have a place to stay gives you peace of mind during the transition. 4. High Demand for Your Current Home, Low Competition for Your Next OneIf your current home is in high demand but the type of property you’re looking to buy isn’t, selling first may be the way to go. You can sell your home quickly and for top dollar, then take your time buying in a market with more inventory and less competition. 5. Avoid the Financial Burden of Two MortgagesSelling first means you avoid the financial stress of managing two mortgages simultaneously. If your financial situation or risk tolerance isn’t strong enough to support the possibility of carrying two mortgages, selling first is a safer bet. In Conclusion: Buy or Sell First? There’s no one-size-fits-all answer to this question. The right choice depends on the current market, your financial situation, and how much risk you’re willing to take on. In today’s hot seller’s market, it might make more sense for most people to buy before selling, as home prices are rising rapidly and inventory is limited. However, if the market cools and it becomes more of a buyer’s market, selling first could make more sense. You’d be able to secure a higher price for your current home while having more options and less competition when buying your next one. If you’re still unsure about which option is best for you, I’m here to help! Reach out to me for a personal consultation where we can discuss your specific situation, and I’ll help you make the best decision.