Should I sell my house before buying another one?

This is the chicken and egg question of real estate. I talk through it with almost every move up seller, and there's no single right answer. It comes down to your money, your nerves, and how much you hate moving twice.

Option 1: Sell first

Why it's good: You know your exact budget, your offer on the next house is stronger because it isn't contingent on selling, and you'll never carry two mortgages.

The catch: You need somewhere to go if you haven't found the next place. That could mean a short term rental, staying with relatives, or storage.

The Michigan trick that helps: Ask for occupancy after closing. It's common here for a seller to stay a few days to a few weeks after closing, with the terms written into the purchase agreement (usually a daily rate and an escrow holdback that's returned when you move out on time). It gives you a cushion to close on your next home and move once.

Option 2: Buy first

Why it's good: One move, no rush, and you can prep and sell your current home empty, which usually shows better.

The catch: You need to qualify for the new mortgage while still paying the old one, or have a way to cover the down payment before your sale closes. Common ways people do it:

• A home equity line of credit on your current home, opened before you list.
• A bridge loan, which some lenders offer for exactly this situation.
• Cash savings or other assets.

Talk to a lender before you go this route. The numbers have to work if your house takes longer to sell than you hoped.

Option 3: Make your offer contingent on selling

You can write an offer that depends on your home selling. It works, but sellers usually see it as weaker, especially on homes with multiple offers. It works best when your home is already under contract or the home you want has been sitting for a while.

Option 4: Close both on the same day

Very doable with good coordination. You close on your sale in the morning and your purchase in the afternoon, and the proceeds fund the next down payment. It needs everyone's timelines to line up, so build in a little flexibility, like that occupancy period above.

Questions I'd ask yourself

• How much equity do I have? (Our instant home value gives you a quick read.)
• Could I afford both payments for two or three months if I had to?
• How hard would a short term move be for my household, pets included?
• How competitive is the price range I'm buying in?

Homes in our area are going under contract fast right now (here's the data), which makes selling first less scary than it used to be. If you want to talk through your specific situation, give me a call. That's what I'm here for.