Downsizing Your Home? Should You Buy or Sell First?
When you are planning to downsize, choosing your next home is only part of the process.
Another important question is:
Should you sell your current home first, or purchase your next home before you sell?
In this downsizing video, Greg Parker at Keller Williams Real Estate discusses why timing can be an important part of a downsizing move and why there is not one approach that works for every homeowner.
Watch Greg’s Downsizing Video
Why Timing Matters When Downsizing
Downsizing often involves two real estate transactions: selling your current property and purchasing your next home.
Ideally, the timing works smoothly. In practice, the closing dates may not line up exactly.
That can create questions such as:
Where will you live between transactions?
Can you purchase another home before selling?
Would you be comfortable temporarily owning two properties?
How much time do you need to prepare and move?
What financing options may be available?
Thinking about these questions early can help you better understand your options before you begin making offers or preparing your current home for sale.
Option 1: Sell Your Current Home First
Selling first can give you a clearer picture of the funds available for your next purchase.
Once the sale is complete, you may know more precisely what you have available for the next step.
However, selling first can create another challenge if you have not yet found your next home.
You may need to consider how much flexibility you have with your timeline and what arrangements may be necessary between transactions.
The right approach depends on your circumstances, the contracts involved, and current market conditions.
Option 2: Buy Your Next Home First
For some homeowners, purchasing the next property first can provide additional time to move belongings and prepare the current home for sale.
Instead of coordinating everything around one moving day, you may have more time to make the transition.
But this approach can require the financial ability to own or finance two homes at the same time, even if only temporarily.
Before choosing this route, it is important to understand the costs and financing requirements involved.
A qualified mortgage professional can explain available financing options based on your individual financial situation.
What About Bridge Financing?
Depending on your circumstances, you may hear about bridge financing or other financing options designed to help with the period between buying one property and selling another.
These options are not appropriate or available for everyone, and terms can vary.
If you are considering financing your next purchase before your current home sells, speak with a qualified lender about the options that may be available to you and the associated costs and requirements.
Give Yourself Time to Prepare Your Current Home
Timing is not only about the closing dates.
If you purchase your next home before selling your current property, you may have additional time to:
Move furniture and belongings gradually
Declutter the current home
Complete appropriate repairs or maintenance
Clean and prepare the property
Reduce some of the pressure surrounding moving day
For homeowners who have accumulated belongings over many years, having additional time may be useful during the downsizing process.
There Is No One Right Order
Should you buy first or sell first?
There is no universal answer.
Your decision may depend on:
Your financial situation
Available housing inventory
Your current property
Financing requirements
Contract terms
Your preferred moving timeline
Current local real estate activity
Before deciding on a strategy, it can help to understand how each option may affect the rest of your move.
Frequently Asked Questions About Buying and Selling While Downsizing
Should I sell my house before buying a smaller home?
It depends on your financial situation, housing needs, timeline, and the current market. Selling first may provide more clarity about the funds available for your next purchase, while buying first may provide more flexibility with the move.
Can I buy a new home before selling my current home?
Some homeowners may be able to purchase another property before selling, depending on their finances and financing qualifications. Speak with a qualified lender about your individual situation.
What happens if my home sells before I find another one?
You may need to plan for the time between transactions. The options available will depend on your contracts, finances, and individual circumstances.
What is bridge financing when buying a home?
Bridge financing generally refers to short-term financing that may help qualified borrowers manage the period between purchasing a new property and selling an existing one. Availability, costs, terms, and qualification requirements vary by lender and borrower.
Can Greg Parker help plan the timing of a downsizing move in Montgomery County, PA?
Yes. Greg Parker at Keller Williams Real Estate can help homeowners considering downsizing in Montgomery County, PA review current real estate activity, housing options, and the practical steps involved in coordinating a sale and purchase.
Thinking About Downsizing in Montgomery County, PA?
One of the most important parts of planning a downsizing move is understanding how the sale of your current home and the purchase of your next home may fit together.
Whether you are considering selling first or purchasing first, planning ahead can help you understand the steps involved before you make a decision.
If you are considering downsizing in Montgomery County, PA, contact Greg Parker to discuss your plans and learn more about current local real estate activity.
Greg Parker at Keller Williams Real Estate
Direct: 215-239-7953
Broker: 215-646-2900
Email: Greg@CallGregParker.com
Website: CallGregParker.com
