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What Comes First: Buying a New Home or Selling the Old One First?

What Comes First: Buying a New Home or Selling the Old One First?

Are you trying to decide whether you should buy a new home or sell your current one first? Making the decision on when and where to invest your finances can be daunting. With so many available options and location specific factors, it is important to make an educated choice. If you are in Illinois and want to know more about what the real estate market offers, this blog post will help guide you through making the right decision for yourself. Whether that’s buying your current residence or jumping into a new one first, we will break down all elements involved with each process so that by the end of reading this post, you will have all the confidence necessary when it comes time decide! Let’s dive in!

Major Factors You Should Consider Before Making This Decision

When it comes to buying or selling first, the market conditions and your financial situation will greatly influence your decision. During a buyer’s market, when home prices are lower than usual, buying your desired home may make more sense before selling your current one. This allows you to secure the best possible price for both properties and eliminates the risk of selling your home at a lower price to purchase the one you really want. However, if you are considering buying during a seller’s market—when prices are higher than usual—you may want to sell your current home first to get top dollar.

Pros and Cons of Buying a Home First

Buying a home first can give buyers an advantage in certain situations. It allows you to take your time to find the right property, secure financing, and ensure it meets all of your needs.

Additionally, if you can buy at a lower price than what you could sell for, this will create some financial cushioning for you.

Disadvantages of buying a new home first

On the other hand, there are some drawbacks to buying a home before selling yours. You might need to take out a bridge loan or additional financing to make the purchase, which can be expensive and put additional strain on your budget.

You may also struggle to maintain two mortgages until your existing home is sold, so it uss important to factor in that cost. Additionally, depending on your real estate market, you may have difficulty selling your existing home quickly, leaving you with two mortgage payments and a higher overall debt load.

Pros and Cons of Selling a Home First

Advantages of selling the old home first

Selling your home first can provide some financial security as you can use the proceeds of your sale towards purchasing a new home. This removes some risks associated with taking out a bridge loan or other financing options.

At the same time, if you sell in an optimal market, you can maximize your profits and get more money out of the sale than if you had waited.

Disadvantages of selling the old home first

However, selling first can also lead to some drawbacks. If the market is slow or buyers are few and far between, you may need help finding a buyer in a reasonable amount of time and could have to lower your price to make the sale.

Additionally, if interest rates go up before you can purchase a new home, you could pay more for your next property. Finally, finding the perfect home quickly can be challenging if you have already sold yours.


The decision to buy or sell first should be tailored to your circumstances. With careful planning and research, you can make the best decision for your family and ensure a smooth process from start to finish. Good luck!


Niko Law LLC is an Illinois law firm. As the firm practices law in the State of Illinois, only, this website and/or e-newsletter focuses upon that jurisdiction, only. Please keep in mind Niko Law LLC does not guarantee results and that law can vary dramatically from state to state, county to county, and it is not reasonable to assume that law in other jurisdictions will be the same as, or even similar to, Illinois law.

This e-newsletter should not be construed as legal advice, nor used in lieu of a lawyer.

For questions regarding your specific situation, please contact Niko Law LLC at 708-966-9388.

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