Should You Buy a New House Before Selling Your Current One?

Navigating the timing of buying and selling a home can feel like a high-stakes balancing act—especially in markets like Bend and Central Oregon. One of the most common questions homeowners face is: Should I buy a new home before selling my current one? The answer depends on your financial situation, the housing market, and your risk tolerance. Here’s what to consider:

✅ Pros of Buying First

1. You Control the Move TimelineNo need to find temporary housing or store your belongings. You can move into your new home without pressure.

2. Better Shopping ExperienceYou can take your time finding the right property instead of rushing to align with a buyer's closing timeline.

3. Avoid Being "Homeless"In a competitive market with low inventory, securing your next home first ensures you're not left scrambling.

⚠️ Cons of Buying First

1. Financial StrainYou may need to qualify for two mortgages, cover two sets of utilities, and have enough for a down payment without selling your current home.

2. Risk of Unsold HomeIf your existing home takes longer to sell than expected, you could be on the hook for both homes longer than you'd like.

3. Bridge Loans or Contingencies May Be NeededTo make it work, you might need to explore a bridge loan, a home equity line of credit, or a sale contingency (which can weaken your offer).

🛠️ Tips If You Want to Buy Before Selling

• Get pre-approved for both scenarios: with and without your current mortgage.

• Work with an agent who can help price your home accurately and prepare it to sell quickly.

• List your current home shortly after buying to minimize financial overlap.

• Consider renting out your current home short-term to offset costs if the market is slow.

💡 A Middle-Ground Option: “Rent-Back” Agreements

If you sell first but need time to find your next home, ask the buyer if you can “rent back” your home for 30–60 days after closing. This gives you breathing room while maintaining financial security.

If you have strong finances and a solid plan, buying before selling can reduce stress and create flexibility. Just be sure you’ve consulted with a local lender and real estate professional before making the leap.

FAQs

❓Can I make an offer on a new house before my current one is listed?

Yes, but your offer may be less competitive unless it's non-contingent (not dependent on selling your current home). Sellers often favor buyers with fewer conditions.

❓What is a bridge loan and how does it work?

A bridge loan is a short-term loan that helps you cover the down payment on your new home before you’ve sold your current one. It “bridges” the financial gap but usually comes with higher interest rates and fees.

❓Will owning two homes hurt my credit or loan eligibility?

It can impact your debt-to-income ratio, which affects your loan approval. A lender can help you determine if you qualify to carry both mortgages temporarily.

❓Is it better to sell first in a buyer’s market?

Usually yes. If homes are sitting longer and prices are dropping, you may want to sell first to avoid the risk of owning two homes while your current one struggles to sell.

❓How long do most people have between buying and selling?

Timing varies, but many try to overlap by no more than 1–2 months. If you buy first, aim to list your home shortly after closing or even right before.

❓Can I rent out my current home instead of selling right away?

Yes, if it makes financial sense. Some buyers turn their old homes into income properties temporarily or long-term—just check with a financial advisor or lender first.