One of the most important decisions you’ll make as a San Diego homebuyer is whether to sell your current home before buying a new one—or purchase first and sell later. This choice can significantly impact your finances, timeline, and overall peace of mind. Here’s a breakdown of the pros and cons of each option to help guide your decision.
Option 1: Sell First, Then Buy
Pros:
-
💰 Clearer Financial Picture: Selling first allows you to know exactly how much equity you have to put toward your next home.
-
🧾 Stronger Loan Approval: Without an existing mortgage, you may qualify more easily for your next loan.
-
💼 Less Pressure to Carry Two Mortgages: You won’t be stuck with overlapping payments.
Cons:
-
🕒 Temporary Housing May Be Needed: You may need to rent or find short-term housing between homes.
-
⏳ Feeling Rushed to Buy: Once you’ve sold, there’s pressure to find your next home quickly.
Option 2: Buy First, Then Sell
Pros:
-
🏡 Smooth Transition: You move directly into your new home, avoiding the hassle of temporary housing.
-
🎯 More Control Over Your Purchase: You can take your time and wait for the right home.
Cons:
-
💸 Financial Risk: You may need to cover two mortgages if your current home doesn’t sell quickly.
-
🔐 Contingency May Be Needed: Sellers of your future home may hesitate if your offer is contingent on your current home selling.
Other Strategies to Consider
-
Bridge Loans or HELOCs can help you access your equity to buy before selling.
-
Rent-Back Agreements may allow you to stay in your current home after closing while shopping for your next one.
-
Contingent Offers protect you from owning two homes—but may be less attractive in a competitive market.
The Bottom Line
There’s no one-size-fits-all answer. The best path depends on your financial situation, local market conditions, and comfort level with risk. As your real estate advisors, we’ll help you evaluate your options and craft a plan that makes your move as smooth and successful as possible.