There is no one-size-fits-all answer. The right move depends on your finances, your market, and the level of risk you are comfortable taking on.
If you’re planning to move, one of the first questions you’ll face is whether to buy your next home before selling your current one or sell first and then start looking.
It’s a puzzle I help clients solve all the time, and there’s no one-size-fits-all answer. Each approach comes with real trade-offs, and the right choice depends on your specific situation.
What happens when you buy first? Buying first gives you flexibility. You avoid temporary housing, you know exactly where you’re going, and you get the certainty of locking in the home you love before letting go of the one you’re in.
The trade-off is financial risk. If your current home doesn’t sell as quickly as you expected, you end up carrying two payments and netting less than you planned. That flexibility comes at a cost if the timing doesn’t line up.
What happens when you sell first? Selling first removes that financial risk. You know exactly what you’re getting from the sale and when you’re getting it. The trade-off is that you’re now at the mercy of the market when it’s time to buy. You may feel rushed, limited by what’s available, or pressured into a home that isn’t quite right because your timeline is no longer in your control.
Here are four things that will help you determine the right move.
1. Your cash position. How much do you have in reserves? If you can comfortably float two payments for a period of time, buying first becomes more viable. If your reserves are tight, selling first reduces the financial exposure.
2. How strong your market is. In Portland, markets are micro. Some areas are still very competitive where homes move fast. Others have more inventory and longer days on market. Where you’re buying and where you’re selling may have completely different dynamics, and that affects your strategy.
3. Whether contingencies are realistic. In some situations, you can write a contingent offer, meaning your purchase depends on your current home selling. Sellers who have been on the market for a while may accept that. Sellers with fresh listings and strong interest probably won’t. It depends on the specific property and the competition around it.
4. Your tolerance for risk and stress. This is the factor most people underestimate. Buying first means accepting financial uncertainty. Selling first means accepting housing uncertainty. Neither is wrong, but you need to be honest about which kind of stress you can handle.
This isn’t about timing the market. It’s about managing the risk you’re willing to take on to get yourself into the right next home.
The best way to figure it out is to sit down and look at both sides together. We look at what you can expect from your sale, what you’re looking for on the buy side, how often that type of home comes up, and how competitive those neighborhoods are right now.
From there, we build a strategy around your risk profile and your goals.
If you’re weighing the buy-first vs. sell-first decision and want to talk through what makes sense for your situation, I’d love to help you put together a plan. Call me at 503.522.0090, email me at sarita@asksarita.com, or visit blog.asksarita.com and let’s map out the right strategy for your next move.
