For many homeowners, the next home depends on the current one. You may need the equity from your sale to make a down payment, or you may not want to carry two mortgages. At the same time, you do not want to sell and end up with nowhere to go.
Buying and selling a home at the same time is one of the most common challenges in real estate, and one of the most stressful. With the right plan, though, it can be managed. Barb Bishop, a real estate broker with Skyline Properties in Puyallup, helps clients coordinate a sale with a purchase, drawing on more than 30 years of experience across mortgage banking, title, escrow, and brokerage.
The Big Question: Buy First or Sell First?
There is no single right answer. It depends on your finances, your timeline, your comfort with risk, and the market.
Selling first can make sense if:
- You need the proceeds from your sale for your next down payment
- You want to know exactly how much you have to spend
- You do not want to risk owning two homes at once
The tradeoff is that you may need temporary housing if you have not found your next home by the time you close.
Buying first can make sense if:
- You can qualify for the new home without selling your current one
- You want to move only once
- You have found a home you do not want to lose
The tradeoff is the possibility of carrying two housing payments until your current home sells.
Common Strategies for Coordinating Both Sides
Here are some of the tools buyers and sellers commonly use. Each has pros and cons, and not every option is available or right for every situation.
- 1. A home sale contingency You make an offer on your next home that is contingent on selling your current home. This protects you from owning two homes, but some sellers may view contingent offers as less attractive than non-contingent ones, especially when they have multiple offers.
- 2. A rent-back after closing When you sell, you negotiate to stay in your home for a short period after closing, often paying rent to the buyer. This can give you time to close on your next home and move once.
- 3. Coordinated closing dates With careful planning, it may be possible to close your sale and your purchase close together. This takes clear communication between both transactions, both escrow companies, and your lender.
- 4. Financing options that bridge the gap Some buyers use financing tools to access equity before their current home sells. Whether these make sense depends on your financial situation and what lenders offer. Barb can introduce you to experienced lending professionals who can explain your options. Skyline Properties is not a lender and does not provide lending advice.
- 5. Temporary housing Some homeowners sell first and move into a short-term rental or stay with family while they shop. It means moving twice, but it can give you more flexibility and buying power.
Start With Your Numbers
Before you choose a strategy, it helps to have a realistic picture of your finances:
- What might your current home sell for, and what will you net after costs? Barb can review your home and the market with you. Remember to account for selling costs, including Washington's real estate excise tax, which the Washington Department of Revenue says is usually paid by the seller.
- What can you qualify for? A lender can tell you whether you can buy before selling and what your budget looks like. Barb can help with a lender introduction.
- What is your timeline? School calendars, job start dates, and lease endings can all shape your plan.
Prepare Your Current Home Early
If you are planning to sell and buy, getting your current home ready early gives you more options. Gather information about recent improvements, major systems, and property features. Decide which repairs are worth making. Washington sellers should also be ready to complete the seller disclosure statement required for most residential sales under RCW 64.06.
A home that is ready to list can go on the market quickly once you find your next property, which can make a contingent offer more appealing to the seller you are buying from.
Moving Up, Downsizing, or Relocating
The right strategy often depends on why you are moving:
- Moving up: Families who need more space often rely on equity from their current home. Selling first or using a sale contingency are common approaches.
- Downsizing: Homeowners moving to a smaller home, a manufactured home, or a low-maintenance property may have more flexibility, especially if they have significant equity.
- Relocating: If you are moving into or out of the Puyallup area, timing and long-distance coordination become even more important.
Why One Broker for Both Sides Helps
When the same broker is helping you with both your sale and your purchase, it is easier to keep the timelines aligned, anticipate problems, and adjust when something changes. Barb offers the same level of attention to buyers and sellers, and her background in title and escrow helps her spot closing issues early.
Her process starts with understanding your needs, helping you understand your options, building a personal strategy, and supporting you through closing, all without unnecessary pressure.
Frequently Asked Questions
Can I buy a new home before selling my current one? It depends on whether you can qualify for the new loan while still owning your current home. A lender can help you find out.
What is a home sale contingency? It is a condition in your purchase offer that makes the purchase dependent on the sale of your current home.
What is a rent-back? A rent-back is an agreement that lets the seller stay in the home for a period after closing, typically paying rent to the new owner.
Plan Your Next Move With Barb
If you are thinking about buying and selling a home at the same time, start with a no-pressure conversation about your goals and timeline. Call 253-208-5041, email barbb@skylineproperties.com, or fill out the buyer questionnaire and seller questionnaire. Barb aims to follow up personally, typically within about 15 minutes during business hours.
This article is for general educational purposes. Barb Bishop and Skyline Properties provide real estate guidance, not lending, tax, or legal advice.
