Sell Your Home and Buy at the Same Time

Sell Your Home and Buy at the Same Time while also house-hunting is a major challenge that can be extremely stressful. You’ll have to juggle timelines, financial considerations, and logistics for two significant transactions at the same time—and if you drop one of the balls in the air, it can cost you big.

The conventional wisdom is to sell your property before buying another, as this allows you to free up equity for a down payment on the new home and avoid paying for two mortgages at once. But that’s not always the case, especially if you need to move quickly for job relocation or other unavoidable circumstances.

Sell Your Home and Buy at the Same Time: Strategies for a Smooth Move

Selling before buying also slams the brakes on your house-hunting, as you’ll have to find somewhere to live in between, which can add unwanted expenses like deposits for a temporary place and storage costs for your belongings. And if your property needs repairs or renovations to make it market-ready, that will take longer and potentially reduce its sale price.

If you’re planning to sell before buying, consult a mortgage lender to understand your options. You could use some of the proceeds from your property to pay for a deposit on a new home, but that’s generally not ideal as it can negatively affect your debt-to-income ratio and may mean you have less equity to put towards a down payment. Or, you could tap into your emergency savings or withdraw from retirement funds, though it’s important to speak with a financial professional first to consider the ramifications of this option.