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Buy Before You Sell

You are coordinating two houses, not one

Do not list the house you are in, or fall in love with the next one, until you understand how the two transactions fit together.

Plan my moveWork out the timing
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Do I sell first or buy first?

You own a house. You want to buy another house. But you may not want to sell the house you are living in until you know where you are moving. At the same time, depending on your situation, selling your current house may be part of the plan for buying the next one.

So people start thinking: do I sell first? Do I buy first? What happens if my house sells and I have not found anything? What happens if I find the perfect house and mine has not sold yet?

That is the problem, and there is not one answer that works for everybody. Which is why the first question is not which product you need. It is tell me what you are trying to do. Some people want to find the next house before they sell. Some want the current one sold before they even start looking. Some need the money from the current house as part of the next purchase. Some have a lot more flexibility than they realize.

Equity and available money are not the same thing

This is the one we end up explaining twice.

Somebody will say, I have all this equity in my house. And that is important. But then we need to talk about how that equity actually fits into the next purchase, and when it is available to you.

You cannot just look at the number and assume the timing takes care of itself. Working out when it becomes available, and what that means for the next offer you make, is most of what this conversation is for.

Work out the timing

Equity in a house you still live in is not the same as money you can use on a Tuesday.

What would actually land from the sale, and when?

Equity and available money are not the same thing, and the difference is usually the part that changes the plan. Enter your own figures, nothing is sent anywhere.

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This is arithmetic on numbers you entered. It is not a quote, an offer, a credit decision or a recommendation, and it does not evaluate your eligibility for any loan program. What a sale actually nets depends on the offer, the contract and the closing. Align Lending LLC, NMLS #2041154. Equal Housing Opportunity.

What you will walk away knowing

Which order makes sense for you, and what happens if either side moves first.

Plan my move

Where this goes wrong

Where does this go wrong most often?

Usually somebody starts one side before understanding the other.

They list their house and then start figuring out the next purchase. Or they fall in love with another house before they have really thought through what happens with the one they own. Then everything feels urgent, and urgent is where people make decisions they would not otherwise make.

A lot of people also assume they have to sell first. They will say, obviously I cannot start looking until this house is sold. Maybe that is the right plan. But it is worth actually looking at before you decide, because that assumption drives the biggest part of the decision and nobody checked whether it was true.

What makes this harder than buying your first house

You have the house you own, the house you want to buy, the timing of the sale, the timing of the purchase, and then the actual move sitting in the middle of all of it.

And people are not just making a financial decision here. They are thinking, where am I going to live if this does not line up? That is what makes it feel stressful, and it is a fair thing to be thinking about.

The part people underestimate is everything happening around the mortgage. Movers. Kids. School. Pets. Furniture. Possession dates. Where you are sleeping if something slips.

Figure out the order first

What if the sale and the purchase do not line up?

Then you need a backup plan, and you want it before you need it.

Maybe dates can be adjusted if everybody involved agrees. Maybe temporary housing becomes part of the plan. Maybe possession timing is part of the conversation. There are different solutions depending on the transaction.

The important thing is not pretending everything is definitely going to happen on the exact same day. Sometimes taking the pressure off is worth more than trying to make everything line up perfectly. The goal is making a good decision.

Ask about Plan B

There is no prize for closing two houses on the same day.

What this looks like in practice

What getting the order wrong looks like

The one we see is somebody who starts looking at the next house before they really understand what they are doing with the house they already own. They find something they love. Now they are excited. And suddenly we are trying to answer questions that should have been answered before they ever walked into that house.

They know they have equity in their current home, so in their mind they are thinking, we are good, we have all this money sitting in the house. That is where we slow the conversation down. Because having equity and having that money available at the exact moment you need it are two different things.

We have to understand the current mortgage. The home they are selling. Whether that home needs to sell before the next purchase. The timing. What happens if they find the new house first, and what happens if their current house sells first.

The biggest mistake is thinking this is just another purchase. It is not. You are coordinating two houses, two transactions, and one family trying to move between them. What matters is having the order figured out before either transaction starts controlling the other one.

Which is why we would much rather have this conversation when somebody says we are thinking about moving, than when they call and say we found the house.

Talk through your own situation
Samantha Shelton in the Align Lending office

About Samantha

Samantha Shelton has been a licensed loan officer since May 2020 and founded Align Lending in August 2020. Before mortgages she was a stay-at-home mom raising three boys.

In her own words: "I own a mortgage brokerage in Michigan and I help people understand their options before they make one of the biggest financial decisions they are ever going to make."

Recognition includes Hall of AIME, NAMB Broker of the Year, and Woman with Vision, along with her leadership work with AIME.

Align Lending LLC, NMLS #2041154. Samantha Shelton, NMLS 1647301. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas.

Read Samantha's story

Samantha Shelton got it done for my buyers, despite a number of obstacles that had to be overcome. She truly cares about getting folks into houses. She is diligent and thoroughly professional.

Sherrie Brindley, Google review

Individual experience. Results vary.

Questions people actually ask

If yours is not here, ask it on the call. There are no dumb questions.

What happens if the dates do not line up?

Then you need a backup plan, and you want it before you need it. Dates can sometimes be adjusted if everybody agrees. Temporary housing can become part of the plan. Possession timing can be part of the conversation. The important thing is not pretending everything will definitely happen on the same day.

Not automatically, and that assumption is worth testing before it drives everything else. Maybe selling first is the right plan for you. Let us actually look at it rather than deciding by default.

Before you list anything and before you fall in love with another house. If you are sitting around one night saying maybe we should move next year, that is early enough. The first conversation does not have to turn into anything.

There are a few directions. Some sell first. Some are in a position where buying first is part of the plan. Sometimes the sale and the purchase get coordinated together. Sometimes somebody uses a temporary living situation in between. Which one fits depends on the two transactions, which is why we look at those before naming a route.

Sometimes, yes. When buying first starts forcing the rest of the decision, when you would feel stretched carrying both, or when you need the current house sold before the next plan makes sense, taking the pressure off can be worth more than perfect timing.

The property tax conversation still matters on the house you are buying. Knowing the taxes on the home you own now does not mean the next house works the same way. Michigan real estate is also very local, so we want the lender and your agent working from the same plan rather than making assumptions separately.

The lender, you, and your real estate agent should all be working from the same plan before anything is listed or offered. Most of what goes wrong here is two sides moving on different assumptions.

Understand how the two transactions fit together

Once we have that, we can build an actual plan instead of guessing.

Plan my moveSee the homebuyer game plan
  1. 1

    Tell us what you are trying to do

    Not what product you want. What you are actually trying to accomplish.

  2. 2

    We look at your situation

    A licensed Align loan officer works out what matters most for you specifically.

  3. 3

    You leave with a plan

    Your options, the tradeoffs, and your next step. No obligation to go further.

Related reading

Background from the Align Learn Center, if you want to read before you talk to anybody.

Browse the Learn Center

Loan options

See every loan option

Other homebuying questions

Purchase overview

Align Lending LLC, NMLS #2041154. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. This page is for educational purposes only. It is not a credit decision, a preapproval, a commitment to lend, or an offer of credit, and it does not evaluate your eligibility for any loan program.

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