Selling your old house before buying a new one.
It happens when you out grow one and it’s cheaper to replace it than the mess and expense of renovating. Timing timing timing in real estate has replaced the say location three times straight mantra.
One of the trickiest time consuming delicate two step real estate scenarios that comes up today, gotta sell your current house before buying your next mailing address home sweet home.
Maybe the sale does seem like a safe financial move, but it often leads to frustrating delays, uncertainty, and added expenses. At the same time, trying to buy before selling has its own risks, especially if market conditions shift unexpectedly.
Sell your house, buy another house sounds simple right?
In the movies when a rock star is moving up due to success or a coach and his family get moved halfway across the country. In Hollywood, the process takes from listing to closing times two about twenty minutes or less. Two commercial breaks. It’s made to look easy.
Selling while buying rarely goes smoothly and definitely needs added timely attention to all the important details in each sale that is dependent on the other.
Both halves of the equation added together create challenges that can slow everything down. It can cost a lot of money, time and frustration. Maybe even put your ability to buy a new Maine home at all at risk.
One of the biggest real estate hurdles when selling first is sheer timing.
The legal obligation to get out of your existing old home mortgage has to happen for most changing housing. Writing a check and using cash and carry currency is not always an option for the Maine real estate home buyer. Turning the equity into cash for the purchase of a new set of keys to house number two is the next step.
It all takes time because people, usually banks are involved. For mortgages, releases of loan liens
Finding a buyer for your home means listing, marketing, showing, negotiating, and finally a real estate closing—a process that can take weeks or months. If your buyer also needs to sell their home before purchasing yours, you’re stuck in a chain reaction of dependent transactions.
Financing, appraisals, and contingencies can create delays or even collapse deals, sending you back to square one in the sell first, buy next board game.
If your house sale falls through, it not only wastes time but can also make your property less attractive. When a home returns to the market after being under contract, potential buyers often assume something was wrong with it, leading to lower offers and more scrutiny.
Maine real estate market conditions can add another layer of risk to the “gotta sell before I buy” dance step.
So can the buyer’s credit and the type of financing needed to pull off a purchase. On a house that may or may not appraise for the property amount or the list of repairs are too big for the house buyer to swallow. If winter is approaching, further delays can push your real estate sale into a slower market, forcing price reductions to attract new buyers.
Meanwhile, the seller of your new home may not be willing to wait for your sale to go through. No more extension, then another extension why everyone waits. All the banks, appraisals, home inspections and repairs for underwriting means it a time consuming double operation.
If the new home, second house seller receives another offer with fewer contingencies, you could lose out on the Maine home purchase sale entirely.
Kick out clauses are not so much fun for a buyer.
Buying and selling, like trips to the bathroom. You can’t put them off. Selling first for less than the value to avoid missing out on the next home that is a tad over priced also creates practical problems. If the timing doesn’t align perfectly, the numbers just don’t add up, you may need temporary housing, storage, and extra moving costs.
If your home takes longer to sell than expected, you might miss out on good buying opportunities or feel pressured to settle for a less desirable property just to keep things moving.
Some homeowners try to avoid these issues by buying a new home before selling their old one.
This can make you a stronger buyer, peeling off the cash or getting a financial bridge or equity loan, advance on your retirement account. It allows you to secure your ideal property without being tied down by contingencies. Options for buying first include securing a bridge loan, using a home equity line of credit (HELOC), or taking advantage of a lender’s recast program that allows you to adjust your loan after selling.
However, buying before selling comes with serious financial risks, especially in a cooling Maine real estate market.
If home prices drop and appraisals come in lower than expected, your lender may not approve the full loan amount you were counting on. This could leave you scrambling to cover the gap with additional cash or force you to back out of the deal—possibly losing your deposit in the process.
In the worst-case scenario, you might sell your old home only to find that you can no longer afford or qualify for your new home, leaving you without a place to live. Pitch a tent, move in with Mom and Dad, sleeping in your car or trying to get an extended short term stay suddenly becomes a priority.
To minimize these risks, it’s crucial to have a solid financial plan selling your old house, buying the new one.
Getting pre-approved with a bank lender who understands your domino situation. It ensures you have enough reserves to cover unexpected costs, and working with a Maine real estate professional who can help you time the market effectively can all make a difference.
Real estate is all about timing, and every delay or misstep can cost money and opportunities. Whether selling first or buying first, the more contingencies and uncertainties involved, the longer and riskier the process becomes. In the end, time is money, and making the right decision depends on your Maine real estate market conditions, financial flexibility, and careful planning. Surrounding yourself with professionals that have helped orchestrate the sell and buy again process.
Selling a Maine home while trying to buy another is a nerve wracking nightmare.
The process is slow, frustrating, and full of unnecessary roadblocks that cost time and money. You’re at the mercy of buyers, sellers, banks, appraisers, and a real estate market that can turn against you at any moment. If the buyer or seller demands are not reasonable and there is a lack of working together for the common good, tensions flare. Emotions can run high and one side or the other pulls out by not extending a purchase and sale sales agreement. Or buyer remorse, seller remorse happens and lawyer up to fight over deposits and the “damages”.
Selling first?
Great, now you’re stuck waiting for some maybe-serious, maybe-not buyer to get their act together, list their own home, find financing, and drag you through endless delays. If their deal falls apart, guess what? You’re back to square one—wasting months and losing momentum. And when your home finally comes back on the market, new buyers start side-eyeing it, assuming something is wrong with it. It’s infuriating.
Buying first?
Sure, go ahead and take on two mortgages, cross your fingers, and hope your old house sells fast. Except what happens when the market cools, buyers dry up, and suddenly your house is worth less than you expected?
If the appraisal comes in low, your financing could fall apart completely, leaving you homeless and screwed. You might have sold your house and now can’t even afford the new one. Imagine that—no home, no deal, and no way to undo it.
And let’s talk about house buying home selling timing—because time is money.
Every extra month stuck in limbo means more mortgage payments, more property taxes, more stress, and less negotiating power. Meanwhile, the seller of the house you want to buy isn’t going to sit around forever. They’ll move on, take another offer, and leave you scrambling. Nothing about this is fair, fast, or easy.
So what’s the solution? Bridge loans, rent-backs, contingency clauses, cash offers—but all of them come with their own risks. There is no perfect way to do this, and real estate transactions move at the speed of molasses because everyone wants to protect themselves while leaving you hanging.
Bottom line: the more contingencies, delays, and middlemen involved, the longer and more expensive this entire process becomes. And in Maine real estate, wasting time is wasting money. Buying, selling or doing both simultaneously. MOOERS REALTY here to help!
I’m Maine REALTOR Andrew Mooers, ME Broker
207.532.6573 | info@mooersrealty.com |
MOOERS REALTY 69 North ST Houlton ME 04730 USA
