When Selling and Buying Overlap: What You Should Know
Deciding whether to sell your current home before buying a new one—or vice versa—is one of the most consequential real estate moves you’ll make. At Corken + Company we’ve helped Colorado homeowners carefully plan transitions so you don’t end up carrying two mortgages, moving into a temporary place, or leaving equity behind.
Why Selling First Often Makes Sense
When you sell before buying:
• You tap into home equity: The average homeowner today has around $302,000 in built-up equity. Accessing that gives stronger buying power and may even allow you to pay cash.
• You avoid juggling two mortgages: Carrying simultaneous mortgage payments can strain your budget and qualify you out of loan options.
• You make a stronger offer: Sellers prefer buyers with no sale contingencies because those contracts are more reliable and faster.
That order tends to offer financial clarity and smoother momentum when you’re ready to move forward.
The Tradeoffs: What to Prepare For
That said, selling first comes with challenges:
• Need for temporary housing: After your home closes, you may need short-term rental accommodations, to stay with family, or use a rent-back arrangement.
• Market timing matters: If the market is slow on the buying side, finding your next place could take longer than expected.
Rent-backs and bridge loans can help bridge timing gaps, but they come with costs and logistics that need clear planning in advance.
When Buying First May Work
Buying first can work if:
• You’re confident in your next purchase and can carry two payments temporarily while selling.
• Inventory is tight and you want to secure your next home before it disappears.
• You have enough cash or financing flexibility to take that risk.
Be aware this path means higher financial exposure and potentially complex transaction coordination.
Contingency Strategies and Flexible Options
If you plan to align both deals, consider:
• Home sale contingencies: This allows you to make an offer contingent on your home selling—but some sellers may reject these to avoid uncertainty.
• Lease-back agreements: If your buyer agrees, you can stay in your home briefly after closing while you move into the new one.
• Bridge loans or staggered closings: These tools let you close on your purchase before your home sells—but they carry fees and qualifying requirements.
Having backup plans—like short-term storage or temporary living arrangements—is essential to avoid being caught without housing.
Why Local Guidance Is Essential
• An experienced agent helps schedule all parties, lenders, inspectors, and contractors for two transactions with competing timelines.
• You get guidance on pricing your current home to move efficiently and negotiate a competitive position for your next purchase.
• Balancing sales momentum with available listing options helps minimize overlap or downtime between closings.
How Corken + Company Supports Your Transition
We work with you to:
• Choose the optimal sequence—selling first or buying first—based on your equity, loan options, and timing preferences
• Coordinate closing schedules and contract terms for both transactions
• Handle lease‑backs, bridge loan referrals, or temporary housing solutions as needed
• Provide staging, marketing, negotiation, and buyer outreach to ensure efficient sale and solid offer positioning on your next home
Coordinating a sale and purchase at the same time doesn’t have to be overwhelming. With the right preparation and local strategy, you can streamline it with confidence. At Corken + Company we bring experienced guidance to help Colorado homeowners transition smoothly from one home to the next. Visit www.corken.co or call 303‑858‑8003 to explore how to make your move work better for you.
