Sell first or buy first? Three ways to time an out-of-state move
Selling your LA home and buying in another state at the same time is a juggling act. Here are the three approaches people use most, and the trade-offs of each.
When you're leaving LA, you're usually managing two transactions in two states with two sets of timelines. Most people end up choosing one of three approaches.
1. Sell first, then buy
You sell your LA home, the money lands, and then you buy in your new city.
- Upside: You know exactly what you have to spend, you aren't carrying two homes, and you can make a clean, non-contingent offer when you find the right place.
- Trade-off: You may need temporary housing and two moves, including a storage unit in between.
2. Buy first, then sell
You buy in the new city, move, and then sell the LA home.
- Upside: One move, and you can sell an empty, staged home in LA, which often shows better.
- Trade-off: You need to qualify for and carry both homes for a while, or use a bridge loan that lets you borrow against your LA equity. A lender can tell you what's realistic.
3. Sell with a rent-back
You sell your LA home and negotiate to stay in it as a renter for a set period after closing, often 30 to 60 days, sometimes longer.
- Upside: Your equity is available to buy in the new city, and you only move once.
- Trade-off: Not every buyer will agree, and a long rent-back can make an offer less attractive. The terms, including rent, deposit and move-out date, become part of the contract.
How people usually decide
- How sure are you about where you're going? If you're still choosing between cities, selling first and renting in the new place for a few months can take the pressure off.
- How much equity do you have? More equity makes a bridge loan or a cash purchase more realistic.
- How tight is your timeline? A job start date or a lease ending can decide this for you.
When you're coordinating two sides, it helps to have an agent on each end talking to each other. That's how I set things up for clients leaving LA: I handle the sale here and can introduce you to an agent I've vetted where you're going.
General information, not tax, legal or financial advice. Market figures are estimates from public data and may be out of date.
