Should I Sell My House Before Buying?

One of the most common questions homeowners ask is: “Should I sell first or buy first?” Both strategies come with benefits and drawbacks, and the right decision depends on your finances, timeline, and the current housing market.

Selling First: Pros and Cons

Pros of Selling First

• 💰 Financial clarity – You’ll know exactly how much equity you have to put toward your next purchase.

• 🧘 Avoid two mortgages – No overlap means less financial risk.

• 💪 Stronger buying position – Cash in hand makes your offer more competitive.

Cons of Selling First

• ⏳ Tight timeline – You may need to find a home quickly.

• 📦 Temporary housing costs – Renting or staying with family may be necessary.

• 🚚 Two moves instead of one – More stress and logistics.

Buying First: Pros and Cons

Pros of Buying First

• 🏡 Smoother transition – Move directly into your new home.

• 🎯 More time to shop – No pressure to settle for less.

• 🪞 Better home staging – Your old home can be empty, clean, and market-ready.

Cons of Buying First

• 💸 Carrying two mortgages – Risky without strong finances or a bridge loan.

• ❌ Home may take longer to sell – Could lead to price reductions.

• 📝 Contingent offers – May weaken your negotiating power.

Real Scenarios to Consider

1. Hot Seller’s Market (like recent years in Peoria, IL):
   Selling first often makes sense since homes are moving quickly.

2. Buyer’s Market:
   Buying first may be smarter if homes take longer to sell.

3. If You Need Equity for Your Next Home:
   Selling first is the safer bet.

4. If You Can Afford Both Mortgages or Qualify for a Bridge Loan:
   Buying first can give you flexibility and peace of mind.

How to Decide

Ask yourself:

• Do I need my equity to purchase the next home?

• Can I qualify for two mortgages if needed?

• What’s the pace of the current housing market?

• Do I want to avoid temporary housing and moving twice?

Pro Tip: Meet with a real estate agent (hi!) and lender early. They can help run the numbers, check loan options, and design a strategy that fits your goals. Call us at 309.282.1552 so we can start strategizing!

Final Thoughts

There’s no universal answer to whether you should sell first or buy first. The right move depends on your finances, tolerance for risk, and your local market.

👉 Thinking about buying or selling in the Peoria area? Our team can guide you step-by-step so you move with confidence.