Is It Better to Sell Before or After You Buy Your Next Home in Michigan?

Quick Answer

For most Michigan homeowners, selling before you buy generally offers the least financial risk. However, market conditions—whether it’s a seller’s market, balanced market, or buyer’s market—can change the calculus.

In a seller’s market like Royal Oak or Birmingham, buying first may be smart if you have a strong strategy and financial cushion.
In a balanced market, selling first is often safer, though buying first can work if your home is competitively priced.
In a buyer’s market, selling first is typically the wiser move, giving you flexibility and minimizing financial risk.

There is no one-size-fits-all answer. The best choice depends on your finances, local market dynamics, and risk tolerance.

The Complete Picture: Sell First or Buy First?

Moving isn’t just emotional—it’s financial. Timing the sale of your current home with the purchase of your next one requires careful planning, especially in Michigan where seasonal shifts and local demand can dramatically impact outcomes.

Let’s break down both paths.

Option 1: Selling Before You Buy

The Safer Financial Play

Pros

✅ Know exactly how much equity you have
✅ No risk of carrying two mortgages
✅ Stronger negotiating power as a non-contingent buyer
✅ Less financial stress during the transition

Cons

❌ May need temporary housing
❌ Pressure to find a new home quickly
❌ Potential inconvenience of moving twice

Best For:

Sellers who need proceeds from their current home
Downsizers or retirees
Risk-averse homeowners
Buyers in balanced or buyer’s markets in Oakland County

Option 2: Buying Before You Sell

A Market-Dependent Strategy

Whether buying first makes sense is heavily influenced by market conditions:

Seller’s Market (low inventory, high demand):
Buying first can help secure your dream home before it’s gone, but you’ll need a financial cushion to carry two mortgages if your current home doesn’t sell immediately.
Balanced Market (supply and demand roughly equal):
Selling first is often safer, but buying first can work if your home is competitively priced and likely to sell quickly.
Buyer’s Market (more homes than buyers):
Selling first is usually the wiser move, as homes may take longer to sell, and you’ll want flexibility to negotiate your next purchase confidently.

Pros

✅ Move once, not twice
✅ No temporary housing needed
✅ More time to prepare your current home for market
✅ Less emotional pressure

Cons

❌ Carrying two mortgages (even short-term)
❌ Risk if your current home doesn’t sell quickly
❌ Financing requirements can be stricter

Best For:

Sellers with strong cash reserves
Homeowners in seller’s markets who want to secure a limited-inventory home
Buyers with access to bridge loans or HELOCs

Key Insights Michigan Sellers Need to Know

Market conditions dictate strategy – In Oakland County, Birmingham or Bloomfield Hills may favor a buy-first approach during a seller’s market, while Rochester and Royal Oak may behave differently depending on inventory.
Seasonality matters – Spring and early summer often favor sellers; winter favors buyers.
Contingent offers are less competitive – Especially in hot markets.
Pricing your current home correctly is critical – Overpricing can derail a buy-first plan.
Lender options vary – Bridge loans, recast mortgages, and HELOCs can mitigate risk.

Action Steps for Michigan Home Sellers

Start with a realistic home value
Understand what your current home is likely to sell for—not what you hope it will sell for.
Talk to a lender early
Learn if buying first is financially feasible given your home equity, cash reserves, and potential bridge loans.
Assess your market
Homes in Bloomfield Hills behave differently than condos in Royal Oak. Check inventory and market trends to make informed timing decisions.
Create a timeline, not a guess
Align listing prep, showings, closing dates, and purchase deadlines. Include contingencies based on whether the market is a seller’s, balanced, or buyer’s market.
Work with a strategic local agent
A strong Oakland County network can uncover coming-soon or off-market opportunities, structure contingencies properly, and guide you through market-specific timing strategies.

FAQs: Sell or Buy First in Michigan

Is it harder to buy with a home-sale contingency?
Yes—especially in competitive Oakland County markets during a seller’s market.

Can I ask for a rent-back if I sell first?
Often yes. Many buyers are open to post-closing possession when structured properly.

What if my home doesn’t sell as fast as expected?
Pricing strategy, staging, and market analysis are key. Overpricing is the biggest risk.

Do bridge loans make sense?
They can, particularly in a seller’s market, but they aren’t right for everyone. Rates and qualification vary.

What’s the biggest mistake sellers make?
Making timing decisions without understanding both market conditions and financial implications.

In Closing: The Right Strategy Beats the Right Timing

Whether you sell first or buy first, success comes down to planning, pricing, and professional guidance. In Oakland County’s diverse markets—from Birmingham to Rochester—the smartest moves are never rushed or guessed.

If you’re thinking about making a move and want a clear, customized strategy, let’s talk.

📞 Call Kathy Remski at 248-408-0049
Local expertise. Strategic planning. Confident results.