You have decided it is time for a new home. Maybe you need more space, want to downsize, hope to move closer to family, or simply want a home that better fits the life you are living today.

Then comes one of the biggest questions:

Do I sell my Arizona home first, or should I buy my next home first?

This is where many homeowners begin to feel stuck.

If you sell first, where will you live while you search for your next home? If you buy first, can you qualify while you still own your current home? What happens to the equity you were planning to use for your next purchase?

The good news is that this doesn't have to be an either-or decision without a strategy.

There are several ways to coordinate buying and selling a home in Arizona. The key is understanding your options before you put your current home on the market or make an offer on the next one.

Should You Sell Your Current Arizona Home First?

For some homeowners, selling first provides the greatest financial clarity.

Once your current home closes, you know how much equity is available from the sale. You have eliminated the financial responsibility associated with that property, and you can move forward knowing exactly what resources you have available for your next purchase.

That clarity can be valuable.

But selling first creates another question: Where will you live until you find your next home?

You may have more options than you initially think.

Depending on your circumstances, you might:

• Stay temporarily with family or friends.
• Use a short-term or furnished rental.
• Place furniture and belongings in temporary storage.
• Use a portable storage container so your belongings don't have to be completely unpacked and repacked.
• Negotiate a post-closing occupancy arrangement when appropriate and agreed upon by the parties.

None of these solutions is perfect for everyone. But sometimes a temporary transition gives you something extremely valuable: time.

Instead of feeling pressured to purchase the first acceptable home because your closing date is approaching, you may have more flexibility to wait for a home that truly fits your needs.

Can You Buy a New Home Before Selling Your Current Home?

Possibly. Some Arizona homeowners have sufficient income, assets, reserves, and financial strength to qualify for their next home while they still own their current property.

This can create a much smoother physical move.

You may be able to purchase your next home, move in, and then prepare your previous home for sale without trying to coordinate two moving trucks and two closings on the same day.

It can also be helpful when the type of home you want is difficult to find. If the right property becomes available, you may not want your ability to make an offer to depend entirely on selling your current home first.

However, buying first requires careful planning.

You need to understand how owning both properties may affect your mortgage qualification, cash requirements, reserves, and overall financial comfort.

Just because you can qualify to carry two homes doesn't automatically mean that is the strategy you should choose.

My job is to help you understand the numbers so you can decide what makes sense for you.

What if Your Down Payment Is Tied Up in Your Current Home?

This is where the conversation gets particularly important.

Many Arizona homeowners have accumulated substantial equity, but that wealth is tied up in their current home.

You may be financially strong on paper while still asking:

How do I access the equity I need for my next home if I haven't sold this one yet?

That is one reason I encourage homeowners to explore their financing strategy before listing their current property.

Depending on your individual circumstances, there may be financing solutions that can help bridge the timing gap between your current home and your next one.

What Is a Buy Before You Sell Program?

A Buy Before You Sell program may provide another solution for qualified homeowners who would prefer to purchase their next home before completing the sale of their current property.

Depending on the program and your individual circumstances, a Buy Before You Sell strategy may help you access available equity from your current home and use it toward your next purchase before your existing home has sold.

This can potentially change the entire moving experience.

Instead of trying to perfectly coordinate a sale, purchase, closing, and move, you may have an opportunity to create more flexibility between the two transactions.

For some homeowners, that may mean:

• Purchasing the next home before selling the current one.
• Accessing available equity to help with the next purchase.
• Making an offer that is not dependent upon the sale of the current home, when program guidelines allow.
• Moving into the new home before preparing the previous home for sale.
• Reducing the possibility of having to move twice.
• Having more time to prepare the existing home for the market.

Qualification requirements and program guidelines apply, and this strategy will not be appropriate for every homeowner. That is why I believe the first step should be reviewing your individual situation rather than assuming you have to sell first.

Is Buy Before You Sell the Same as a Traditional Bridge Loan?

Not necessarily.  It is another version of a Bridge Loan.  

There are different financing strategies that may help homeowners manage the period between selling one property and purchasing another. A traditional bridge loan may be one solution, while a Buy Before You Sell program may be structured differently.

The important point isn't the name of the financing.

It is understanding which strategy, if any, fits your financial situation and moving goals.

Before deciding, we can look at your available equity, income, current housing obligations, estimated proceeds from the sale, purchasing goals, and the timing of both transactions.

Should You Make an Offer Contingent on Selling Your Current Home?

Another potential strategy is making your next-home purchase contingent upon selling your existing property.

A home-sale contingency can provide protection because your purchase depends upon the sale of your current home, subject to the terms of the contract.

However, sellers evaluate the complete offer presented to them. Depending on Arizona market conditions, competing offers, the property, and the seller's priorities, an offer containing a home-sale contingency may be viewed differently than an offer without one.

This is an area where your REALTOR® and mortgage professional should work together.

Your REALTOR® can help you understand the competitive environment surrounding the property, while I can help you determine what financing strategies may be available.

What Is the Best Way To Buy and Sell a Home at the Same Time?

There isn't one answer that works for every Arizona homeowner.

Your strategy should consider:

• How much equity you have in your current home.
• Your estimated proceeds after the sale.
• Your income and current financial obligations.
• Your available assets and reserves.
• Whether you need your current equity for the next purchase.
• How quickly your current home may sell.
• How difficult your next home may be to find.
• Your comfort level with temporary housing or carrying two properties.
• Your desired moving timeline.

For one homeowner, selling first may provide the greatest peace of mind.

For another, temporary housing may create the freedom to search without pressure.

Someone else may comfortably qualify to purchase first.

And for another homeowner, a Buy Before You Sell program may provide the flexibility needed to make the transition work.

There isn't a universally "right" order. There is a strategy that may be right for you.

Build Your Financing Strategy Before the For-Sale Sign Goes Up

This is the part I believe homeowners sometimes miss.

Don't wait until your current home is under contract to start figuring out how you are going to purchase the next one.

By then, you may have a closing deadline driving your decisions.

I would rather help you explore the possibilities beforehand.

We can review your current mortgage, estimated equity, income, assets, purchasing goals, and potential financing strategies. Then you and your REALTOR® can build the real estate side of the plan around information rather than assumptions.

This is also where my Buyer Ready Service™ can help.

My Buyer Ready Service™ is designed to go beyond simply determining whether you may qualify for a mortgage. We look at your overall home financing strategy so you understand your purchasing power, potential challenges, and available options before you begin making major decisions.

Learn more about my Buyer Ready Service™:
Explore the Buyer Ready Service™

Your Move Should Work for Your Life

There is no prize for making your move more complicated than it needs to be.

Your goal should be to create a transition that gives you financial confidence, enough time to make thoughtful decisions, and the flexibility to recognize the right opportunity when it appears.

You may sell first. You may buy first. You may temporarily rent. You may coordinate both transactions closely. Or you may discover that a Buy Before You Sell strategy gives you another option you didn't know existed.

The important thing is to understand your choices before you have deadlines controlling your decisions.

If you own a home in Arizona and are considering selling it and purchasing another, let's explore the financing side of your move before the process begins.

Understanding what is possible may make your next move much easier than you expected.

Let's Build Your Buyer Ready Strategy™