Should You Buy a New Home or Sell Your Current Home First?

By The Hollinger Team

Diana, Kellie, Dane, Drew and I have over 85 years of experience in Montana real estate, specializing in waterfront properties. Let’s see what we can find for you.

If you’re ready to move but unsure where to start, this question can stop you in your tracks: Do you sell your current home before buying your next one, or buy a new home before selling? The choice can significantly impact your finances, stress level, and the smoothness of your move. Let’s break down both strategies—how they work and its pros and cons—so you can make confident and informed decisions.

1. Buy your next home before selling. Choosing to buy first gives you the freedom to shop for the right home without feeling rushed. The ultimate benefit is the ability to move directly into your new home, eliminating the hassle and cost of temporary housing. The primary challenge is financing. You will need to qualify for two mortgages or have sufficient cash for a substantial down payment.

• Bridge loan - If you have strong equity in your current home, this short-term loan uses that equity to fund your new purchase, which is then paid off when your current home sells. For buyers with ample cash, this option is even more straightforward.

• Rent-back agreement - Another key tactic is to negotiate a rent-back agreement with the seller of your new home, allowing them to stay for a short time after closing. This gives you the critical breathing room needed to sell your current home without pressure.

2. Selling your current home first. Opting to sell first provides immediate financial clarity and power. You’ll know exactly how much equity you have to work with, transforming you into a cash-ready, non-contingent buyer—a highly attractive position in any market.

This approach eliminates the pressure of carrying two mortgages simultaneously. The main challenge is the timeline. If you don’t find a new home quickly, you may face the prospect of arranging temporary housing or moving twice.

To mitigate this, consider negotiating a rent-back agreement with your buyer. This allows you to remain in your current home for a specified period after the sale closes, providing a comfortable window to find and close on your next perfect property.

Should you buy or sell first? There isn’t a one-size-fits-all answer. Your decision depends on your unique financial situation, risk tolerance, and local market dynamics. Buying first offers more control over your move but requires more robust financial resources. Selling first offers undeniable financial security but may require more complex logistical planning.

The best course of action is to consult with an expert before taking any action. I can help you weigh the pros and cons and create a personalized plan that fits your goals and protects your investment. I can help you weigh the pros and cons and create a plan that fits your goals. Call me at 406-837-5531, email ScottHollingerMT@gmail.com, or visitwww.flatheadrealestate.com to start planning your next move with confidence.