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“Should I sell first? Or buy first?”
It’s one of the most common questions I hear from move-up buyers, and I get why. You love your home, but you’ve outgrown it. Maybe you need another bedroom, a bigger yard, a shorter commute, or a different stage of life is calling. But the thought of being stuck with two mortgages, or having nowhere to live, is stressful.
Here’s the honest answer: there isn’t one right answer for everyone. It depends on your finances, your timeline, your equity, and how comfortable you are with risk.
But there are some clear things to weigh. Let’s break it down.
Option 1: Sell First, Then Buy
This is the more cautious route. You list your home, get it under contract, and then shop for your next one with a clear picture of what you’re walking away with.
The upside:
-You know your budget. You’ll know how much equity you’re actually bringing to the table, not just what you hope your home will sell for.
-Less financial pressure. You’re not carrying two mortgage payments at the same time.
-Stronger offers. A buyer who isn’t contingent on selling another home is more appealing to sellers.
The downside:
-You might need a place to stay. If you sell before you’ve found your next home, you could be looking at a temporary rental or staying with family.
-Moving twice is a hassle.
-It can feel rushed. Buying under a deadline can lead to settling for a house that’s “good enough.”
One thing that can help here is asking for extra time after closing so you can stay in your home a little longer while you find your next place. This is sometimes called a rent-back. It’s not always possible, and it depends on the buyer, but it’s worth talking about before you list.
Option 2: Buy First, Then Sell
This is the more comfortable route emotionally. You find the house you love, make the move, and sell your old home afterward.
The upside:
-No scrambling for temporary housing.
-You can take your time with the move, painting, packing, and getting your current home ready to sell.
-You aren’t forced to buy in a hurry.
The downside:
-You may be carrying two housing payments for a while. Depending on how long your old home takes to sell, that can add up quickly.
-Qualifying can be harder. A lender will look at your debt-to-income ratio, and a second mortgage payment may affect what you can borrow.
-You may feel pressure to price your old home aggressively just to get out from under it.
Option 3: Make an Offer That’s Contingent on Your Home Selling
Some buyers write an offer that depends on the sale of their current home. It can protect you, but it also makes your offer less attractive in a competitive situation.
(This is the route that I’ve done multiple times, which both were moves from one state to another. To learn more about those experiences and my tips for relocating, please listen to the Let’s Move to Iowa Podcast.)
Here’s what I tell people. This strategy depends on the market and on the specific home. When there’s less competition, a contingent offer can be more realistic. When a home has multiple offers, it’s harder.
That’s one more reason it’s worth talking to an agent early. We can look at what’s actually happening with homes in your price range and neighborhood instead of guessing.
Option 4: Explore Financing Options Before You Decide
Depending on your situation, there may be ways to bridge the gap between buying and selling. Some homeowners look at things like a home equity line of credit or a bridge loan. Others coordinate closing dates so the sale and purchase happen close together.
Each of these has costs and risks, and what’s available depends on your lender and your finances. I’m not a lender, so I always recommend talking to one before you start house hunting. They can tell you what you qualify for under different scenarios so there are no surprises later.
So, How Do You Decide?
Here are the questions I’d start with:
1. How much equity do you have?
If you have a healthy amount of equity and a manageable mortgage, you may have more flexibility. If you’re counting on the proceeds from your sale for a down payment, selling first may make more sense.
2. How comfortable are you carrying two payments?
Be honest with yourself. A plan that works on paper but keeps you up at night isn’t a great plan.
3. How fast do homes like yours sell?
In the Des Moines Area Association of REALTORS® numbers I shared in my recent post on the Des Moines market, homes spent an average of 50 days on the market in August. That’s the whole metro, though. Your price range and neighborhood could look very different, and timing matters when you’re coordinating two moves.
4. How flexible is your timeline?
If you can give yourself some breathing room, you’ll have more options. If you have a hard deadline, like a job change or the start of the school year, that changes the strategy.
5. What’s the inventory like where you want to buy?
More options are good news for buyers. As I mentioned in that same post, active listings in the metro were up 11.8% from a year ago. But it still comes down to your specific price point and the community you’re looking at. Your next home might be easy to find, or it might take patience.
A Few Mistakes I’d Help You Avoid
-Shopping for homes before talking to a lender. You might fall in love with a house you can’t actually finance alongside your current mortgage.
-Overestimating what your home will sell for. Online estimates are a starting point, not a guarantee.
-Skipping the prep work. A few weeks of decluttering, repairs, and cleaning can make a big difference in how your home shows. If you’re listing this season, these tips are a good place to start.
-Not building in a buffer. Moves rarely go perfectly. Leave yourself some breathing room in your timeline and budget.
The Bottom Line
Selling first is usually the safer path financially. Buying first is usually the more comfortable path emotionally. And in between, there are ways to make it work depending on your situation.
What I don’t want you to do is make this decision alone, or based on guesses.
Moving up is a big step, and it’s okay to feel overwhelmed by the logistics. That’s what I’m here for. We can look at your numbers, your timeline, and the market, and put together a plan that fits your life, not just a one-size-fits-all strategy.
Thinking About Your Next Move?
You don’t need to be ready to list tomorrow. You don’t need to have your next house picked out. You don’t even need to know whether you should sell first or buy first, because that’s exactly what we’ll figure out together.
Let’s have a conversation. We can talk about what you’re hoping for, what your home might be worth, and what your options look like.
Cody Voga—Your Friend in Real Estate.
515-720-1714
cody@c21sre.com
@CodyVogaRealtor
FAQ
Is it better to sell your house first or buy first?
It depends on your finances and risk tolerance. Selling first is generally lower risk, while buying first can be more convenient but may mean carrying two payments.
Can I buy a house before mine sells?
Often, yes. It depends on your equity, income, and what your lender approves. Talk to a lender before you start shopping so you know your options. (If you do not have a preferred lender, let me know!)
What is a home sale contingency?
It’s a clause in a purchase offer that makes the purchase depend on the sale of the buyer’s current home. It can protect the buyer, but it may make the offer less competitive.
How long does it take to sell a house in the Des Moines area?
It varies by price range and neighborhood. A local agent (👋) can show you what’s selling in your area and how long it’s taking.
