Buying and selling a home at the same time can feel like trying to hit two moving targets. For many Portland homeowners, the biggest question becomes: should you sell first, or buy first? While there’s no universal answer, understanding the pros and cons of each route can help you make the smartest move for your timeline, finances, and peace of mind.
Here’s a closer look at whether you should sell before buying a house, and how to decide what’s right for your specific situation.
The Case for Selling Before Buying
For many homeowners in Portland, selling first is the more straightforward path, especially in a fast-moving market.
1. You’ll Know Exactly What You Can Afford
Selling your current home first gives you a clear understanding of your budget. You’ll know your net proceeds, which can go directly toward your down payment, closing costs, or even buying with cash. This financial clarity can give you a stronger position when it’s time to make an offer.
2. It Can Make You More Competitive
In Portland’s popular neighborhoods, like Sellwood-Moreland, Alberta Arts District, or Multnomah Village, sellers often favor buyers who are ready to move quickly. If your current home is already sold (or at least under contract), you can write offers that aren’t contingent on selling your property, which can make your offer more appealing.
3. You Reduce the Risk of Carrying Two Mortgages
Timing two transactions perfectly is hard. By selling first, you avoid the stress of paying two mortgages if your old home doesn’t sell quickly. This can also help you qualify more easily for a new loan since you won’t have an existing housing payment weighing down your debt-to-income ratio.
The Challenges of Selling First
That said, selling before buying isn’t without its risks, especially if you don’t have a backup plan.
1. You May Need Temporary Housing
If your home sells faster than you find a new one (which is common in Portland), you might need to rent short-term or stay with family. That means packing, moving, and possibly storing your belongings twice. It’s doable, but it adds cost and inconvenience.
2. The Market Can Move Quickly
Portland’s housing market can shift from week to week. If you sell and then wait too long to buy, you might find that home prices or interest rates have changed, making your next home more expensive or harder to find. Having a clear strategy and working with a local expert can help reduce that risk.
The Case for Buying Before Selling
Some homeowners choose to buy first, especially if they’re moving for a specific school district, job, or lifestyle change, and they don’t want to risk missing out on the right home.
1. You’ll Avoid a Double Move
Buying first means you can move straight from your current home into your new one, avoiding temporary housing or storage fees. For families or those with tight schedules, this convenience is a major factor.
2. You Can Take Your Time Prepping Your Current Home
Having already moved into your next home allows you to declutter, stage, and show your old property with ease. That often results in a faster sale and higher offers, especially in Portland, where well-presented listings stand out.
3. You Get to Shop Without Pressure
Looking for a home while you still have a roof over your head allows you to be more selective. You’re less likely to make rushed decisions, which can be especially valuable if you’re buying in a niche neighborhood, where inventory is limited.
The Risks of Buying First
Of course, buying before selling comes with its own financial and logistical risks.
1. You May Need to Carry Two Homes
If your current home doesn’t sell quickly, you could end up paying two mortgages at once. That’s a real financial burden, especially when you factor in utilities, taxes, and maintenance. Be sure your finances can handle a longer-than-expected selling timeline.
2. It Can Affect Your Financing
Lenders will factor in both your current mortgage and the potential new one when evaluating your loan application. That can limit how much you’re approved for or change the type of financing available. However, some buyers in Portland use bridge loans or home equity lines of credit (HELOCs) to help ease the gap. Discuss with your lender the options available to you.
What’s the Market Like in Portland Right Now?
The best decision often depends on timing and location. In Portland, inventory remains relatively tight in many in-demand neighborhoods, which can benefit sellers. That means selling first often provides stronger leverage, but it also requires flexibility on the buying side, especially if you’re looking for something very specific.
If you’re in a desirable area and your home is well-maintained, you may be able to sell quickly and negotiate a rent-back agreement, giving you more time to shop. On the flip side, if you're moving to a less competitive neighborhood or buying new construction, buying first might make more sense.
Working with a knowledgeable local agent like The Dirk Hmura Team means you’ll have access to up-to-the-minute insights and smart strategies tailored to the Portland market.
Final Tips to Make Either Path Work
No matter which route you choose, sell before buying a house or the other way around, success comes down to planning and preparation. Here are a few things to keep in mind:
- Talk to a lender early to understand what financing options are available based on your current situation.
- Work with a local agent who understands timing strategies and can help coordinate the process smoothly.
- Have a backup plan for housing or storage in case timelines don’t align perfectly.
- Consider a rent-back agreement if you sell first but need time to close on your next home.
- Get your current home market-ready as early as possible; declutter, make repairs, and stage it well.
Talk to the Team That Knows How to Navigate Both Sides
Whether you decide to sell before you buy or buy before you sell, the key is working with experts who know how to time it right. The Dirk Hmura Team has helped Portland homeowners navigate both paths successfully, with personalized guidance and creative solutions every step of the way.
If you're thinking about making a move, reach out today to talk through your options. Selling and buying at the same time doesn’t have to be overwhelming. With the right strategy, it can be seamless.