Selling Your Current Home and Buying Another Doesn't Have to Be Overwhelming.
You've decided it's time for a change.
Maybe you've outgrown your current home and need more space. Perhaps the kids have moved out and you're ready to downsize. You might want a first-floor primary bedroom, less maintenance, a different community, or a home closer to family.
Whatever your reason for moving, there's one big question: how do you sell your current home and buy your next one without the timing, financing, and moving process becoming overwhelming?
I'm Michaela L. Hartery, a South Jersey Realtor and Broker Associate with Peze & Associates Realtors, with 31 years of experience helping homeowners buy and sell properties throughout Camden, Burlington, and Gloucester Counties.
Helping clients coordinate the sale of one home with the purchase of another is something I do often. I understand the challenges, the decisions, and the importance of having a realistic plan before you make your next move.
My job is to help you understand your options, protect your interests, and coordinate both transactions as smoothly as possible.
Do You Need to Sell Before You Buy?
I Can Buy Before Selling
You have sufficient cash or lender-approved financing that doesn't depend on selling your current home.
I Need to Sell First
You need the proceeds from your existing home to complete your next purchase.
Not sure which situation applies to you? Let's plan your next move.
The Most Important Question: Do You Need to Sell Your Home Before You Can Buy?
This is one of the first questions I ask homeowners who want to buy another property.
Before we begin looking at homes, we need to understand how you'll finance the purchase.
Essentially, there are two options.
Option 1: You Can Purchase Your Next Home Before Selling Your Current One
Some homeowners have the financial resources to purchase their next property without needing the proceeds from the sale of their existing home.
You may have sufficient cash available, qualify for a mortgage while still owning your current home, or have access to another financing option approved by your lender.
If your financing and available funds are in place, you may be able to purchase your next home without making the transaction contingent upon selling your current property.
The advantages may include:
- More flexibility when searching for your next home.
- The ability to make an offer without a home-sale contingency.
- More control over your moving schedule.
- Time to move before preparing or closing on the sale of your existing home.
However, you must understand the financial responsibilities involved.
You may temporarily own two homes, carry two mortgages, and pay property taxes, insurance, utilities, and maintenance on both properties.
Your mortgage lender needs to determine whether you qualify and whether you have the funds required to complete the purchase.
Important: A mortgage preapproval does not automatically mean you can purchase another property without selling your current home. Your lender must specifically evaluate your ability to qualify with your existing housing obligations.
Option 2: You Need to Sell Your Current Home to Purchase Your Next One
This is a common situation.
Many homeowners have substantial equity in their existing property, but they need that equity to provide the down payment or funds necessary to purchase their next home.
In this situation, your purchase may need to be contingent upon selling your current property.
A home-sale contingency is a condition in the purchase contract that makes the buyer's obligation to proceed dependent on the sale of their existing home, subject to the specific terms, deadlines, and protections negotiated in the contract.
For example: you own a home in Cherry Hill and want to purchase another home in Marlton. You need the proceeds from selling your Cherry Hill home to purchase the Marlton property. We may structure your offer so that buying the Marlton home depends on selling your Cherry Hill home under agreed-upon conditions.
However, there's something important to understand.
The seller of the home you want to buy does not have to accept your home-sale contingency. Some sellers prefer buyers who can purchase without having to sell another property first.
That's why preparing your home for sale, understanding its value, and having a strategy are so important.
I'll help you understand how the local market, your home's sale status, and the terms of your offer may affect your chances of getting your next home under contract.
Should You Sell First or Buy First?
There isn't one answer that's right for everyone.
The best approach depends on your financial situation, how much equity you have in your current home, the local real estate market, and your moving timeline.
Selling Your Home First
Selling first can provide a clearer picture of your available funds and may make it easier to determine what you can comfortably spend on your next home.
Once your home is under contract, you may be in a stronger position to pursue a contingent purchase, depending on the status and reliability of your sale.
The challenge is timing. What happens if you sell your home but haven't found your next one?
We'll discuss potential solutions, including negotiating a settlement date that works with your purchase, arranging temporary housing, or negotiating a post-settlement occupancy agreement when appropriate.
Buying Your Next Home First
If you have sufficient cash or lender-approved financing, buying first may give you more time to find the right property.
You may also be able to move before putting your current home on the market.
But buying first can create overlapping housing expenses and additional financial risk.
That's why I recommend discussing your financing options with a knowledgeable mortgage lender before making an offer.
Coordinating Both Settlements
In some transactions, we can arrange for the sale of your current home and the purchase of your next property to settle on the same day or within a short period.
For example, you may sell your existing home in the morning and purchase your new home later that day.
It's possible, but it requires careful planning. Mortgage approvals, inspections, appraisals, title work, moving arrangements, and settlement schedules must all come together. And even with good planning, unexpected delays can happen.
I'll help coordinate the moving pieces and develop a realistic plan, including options if the timing changes.
What If You Find the Perfect Home Before Yours Sells?
This is one of the biggest concerns homeowners have. You find a house you love, but your current home isn't sold yet. What do you do?
First, we determine whether you're financially able to purchase the property without selling. If you are, we can discuss your offer strategy. If you're not, we'll evaluate whether making a home-sale-contingent offer is a reasonable option.
The seller may accept it, reject it, or negotiate different terms. In some situations, a seller may agree to a contingency but retain certain rights to continue marketing the property. The terms of these arrangements must be carefully negotiated and reviewed by your real estate attorney.
The important thing is not to make a financial commitment based on money you don't yet have available without appropriate financing or contractual protections. That's exactly why planning ahead matters.
What If You Need the Equity From Your Current Home?
Your home may represent one of your largest financial assets. If you've owned it for many years, you may have built substantial equity that could help you purchase your next property.
But before making plans, you'll want to understand how much money you may actually receive from the sale.
I'll help you evaluate:
- Your home's current market value.
- Your estimated mortgage payoff.
- Anticipated selling expenses and other closing costs.
- The amount of equity potentially available for your next purchase.
- Whether your expected proceeds align with your next home's purchase price.
- The timing of when your sale proceeds would become available.
A mortgage lender can help determine whether you qualify for financing before your current home sells, including whether a bridge loan or other available home-equity financing is appropriate.
These financing options have costs, eligibility requirements, and risks that need to be understood.
Knowing your estimated net proceeds and purchasing power before you start shopping can make the entire process easier.
How I'll Help You Sell One Home and Buy Another
Coordinating two real estate transactions can be complicated, but you don't need to figure everything out yourself. Here's how we'll approach it.
Step 1: Let's Discuss Your Goals
I'll ask why you're moving, what you're looking for in your next home, your preferred communities, and your ideal timeline. We'll also talk about whether you're downsizing, moving up, relocating, or making a lifestyle change.
Step 2: Determine What Your Current Home May Sell For
I'll prepare a comparative market analysis to help you understand your property's estimated market value. We'll review recent comparable sales, competing listings, property condition, and local market activity. I'll also discuss what may need to be done to prepare your home for sale.
Step 3: Understand Your Buying Power
If you'll be financing your next home, I'll encourage you to speak with a qualified mortgage lender. The lender can evaluate whether you can purchase before selling, whether your mortgage approval depends on selling your existing property, and what financing options may be available.
Step 4: Develop a Selling and Buying Strategy
Once we understand your finances, your home's potential value, and your goals, we'll create a plan. That may mean listing your home first, purchasing first if you're financially qualified, or structuring a transaction that depends on the sale of your current property.
Step 5: Find the Right Home and Negotiate the Best Terms Possible
I'll help you search for properties, evaluate the market, and develop an offer strategy that fits your financial circumstances. At the same time, I'll manage the marketing and negotiations involved in selling your current home.
Step 6: Coordinate Both Transactions
I'll communicate with the relevant agents, attorneys, lenders, inspectors, title professionals, and other parties involved. We'll work to coordinate inspections, mortgage approvals, settlement schedules, and moving arrangements.
Step 7: Get You Into Your Next Home
My goal is to help you move confidently from one home to the next, understanding what's happening and what decisions need to be made. From the first conversation through both settlements, I'll be there to guide you.
Why Work With Michaela Hartery?
31 Years of South Jersey Real Estate Experience
I've worked with homeowners throughout changing markets, difficult negotiations, and a wide variety of real estate transactions. I understand the challenges of selling one home while purchasing another.
Experience Representing Both Buyers and Sellers
When you're involved in two transactions, you need someone who understands both sides of the process. I can help you evaluate your property's value, prepare it for the market, negotiate the sale, search for your next home, and develop an appropriate purchase strategy.
Communication Matters
When two transactions are happening at once, unanswered questions and delayed communication can create unnecessary stress. I believe in keeping my clients informed, returning calls, answering questions, and explaining each step.
Careful Planning and Honest Advice
I won't encourage you to make an offer that depends on proceeds from your current home without first discussing how that dependency needs to be addressed. I'll help you understand the advantages, risks, and practical considerations of your options so you can make informed decisions.
Local Market Knowledge
Whether you're selling in Cherry Hill and buying in Marlton, moving from Mount Laurel to Voorhees, downsizing in Moorestown, or relocating elsewhere in South Jersey, I'll help you understand the communities and current market conditions.
You deserve an experienced Realtor who understands the financial and logistical challenges of making two transactions work together.
Frequently Asked Questions About Buying and Selling a Home at the Same Time
Can I buy a house before selling my current home in New Jersey?
Yes, if you have sufficient cash or qualify for financing that allows you to purchase without first selling your existing home. A mortgage lender can evaluate your available funds, current obligations, and financing options.
Can I make an offer on a home contingent upon selling mine?
Yes. A home-sale contingency can make your purchase dependent on selling your existing property under the agreed terms of the contract. However, the seller must agree to the contingency and may prefer an offer without one.
Do I need to put my house on the market before making an offer?
Not necessarily. However, if your purchase depends on selling your current home, having your property listed or already under contract may help demonstrate to the seller that you're serious and prepared to move forward. The best approach depends on your circumstances and the seller's requirements.
Is a mortgage preapproval enough to buy before I sell?
Not always. A preapproval may be based on assumptions or conditions related to selling your current home. Your lender must confirm whether you can qualify for and close on the new mortgage while you still own your existing property.
Can I use the equity in my current home to buy another one?
Potentially. Depending on your financial situation and lender requirements, options may include using proceeds after your sale, obtaining a home equity loan or line of credit, or exploring bridge financing. Your lender can explain eligibility, expenses, and risks.
Can I sell my house and buy another one on the same day?
Yes, coordinated same-day settlements are possible. However, they require careful scheduling and cooperation among the parties involved. There is always some risk of delays, so having a backup plan is important.
What happens if my home sells before I find another one?
We can explore potential solutions, including negotiating settlement timing, a temporary post-settlement occupancy agreement, or short-term housing. Each option has financial, contractual, and practical considerations.
What happens if the buyer of my home can't get a mortgage?
That can affect your ability to purchase your next property if your purchase depends on completing your existing home's sale. I'll help you understand the status of the transactions and work with your attorney and other professionals to evaluate the available options.
Should I use the same Realtor to sell my current home and help me buy another?
When practical, having one experienced Realtor coordinate both transactions can simplify communication and planning. It gives your agent a complete understanding of your selling timeline, purchasing needs, and financial dependencies.
How do I know what price range to look at before selling my home?
We'll begin with an estimated market value and net proceeds analysis of your current home. Your mortgage lender can then help establish an appropriate purchasing budget based on your income, debts, available cash, and financing requirements.