Should You Buy Before You Sell? The East Valley Move-Up Strategy That Actually Works

By Susan Seiber, East Valley Real Estate Expert

"Should we buy our next home before we sell our current one?" I get this question a lot from East Valley families, and honestly, the conventional wisdom of "always sell first" isn't always the best advice in today's market.

Here's what I've learned after helping hundreds of families navigate move-up situations in Gilbert, Chandler, and Mesa: the right strategy depends entirely on your specific situation, current market conditions, and financial capacity. Sometimes buying first is actually the smarter move, and sometimes it's a recipe for stress and financial strain.

Quick Answer Summary

Should I buy before selling in the current East Valley market? It depends on your financial situation and risk tolerance. Buying first works well if you can qualify for two mortgages temporarily, want to avoid moving twice, and are in a competitive buyer's market. Selling first is better if you need your equity for the down payment or want to avoid carrying two mortgages.

What financing options exist for buying before selling? Options include bridge loans, home equity lines of credit (HELOC), cash-out refinancing, or qualifying for two mortgages simultaneously. Some lenders offer "buy before you sell" programs with contingent financing that activates once your current home sells.

What are the risks and benefits of each strategy in Gilbert, Chandler, and Mesa? Buy-first benefits: no temporary housing, stronger offers, less stress. Risks: carrying two mortgages, market timing exposure. Sell-first benefits: known budget, no double payments. Risks: temporary housing needs, weaker offers in competitive markets, potential rushed decisions.

The Real Talk About Buy vs. Sell First

Before we dive into strategies, let me share what I see happening in the East Valley market right now. The "always sell first" advice that worked great 10-15 years ago doesn't always make sense in today's environment.

Why the Old Rules Don't Always Apply: In a competitive market, cash offers and quick closings win. Families who have to sell first often find themselves at a disadvantage when competing for their dream home. Meanwhile, inventory is still limited in many East Valley neighborhoods, so when the right home comes up, you need to be ready to move.

The Emotional Factor: I've seen families sell their home quickly, then spend months in temporary housing while searching for their next home. The stress of living out of boxes, storing belongings, and feeling unsettled affects the whole family—especially kids who are dealing with school and routine disruptions.

When Buying First Actually Makes Sense

Let me share some real scenarios where buying before selling has worked beautifully for my clients.

The Strong Financial Position: If you can qualify for two mortgages temporarily and have sufficient cash reserves, buying first often provides the best outcome. You can make competitive offers, take time to find the right home, and move directly from your current home to your new one.

The Competitive Market Advantage: In Gilbert's highly competitive neighborhoods, cash-equivalent offers win. When you're not contingent on selling your current home, you can compete with investors and cash buyers. I've seen families lose out on multiple homes because their offers were contingent on selling first.

The Family Stability Factor: For families with school-age children, avoiding a temporary move can be worth the extra cost. Moving once instead of twice reduces stress and disruption, especially during the school year.

A Recent Success Story: Last year, I helped a family in Chandler who wanted to move to Gilbert for the schools. They qualified for both mortgages and bought their dream home first. They were able to take their time preparing their Chandler home for sale, got top dollar because it showed beautifully, and never had to disrupt their kids' routines. The overlap period was only six weeks, and the peace of mind was worth every penny.

When Selling First Is the Smarter Strategy

Now let me share situations where selling first is definitely the better approach.

The Equity-Dependent Buyer: If you need most or all of your current home's equity for your next down payment, you have to sell first. There's no way around this, and trying to force a buy-first strategy when you don't have the financial capacity is a recipe for disaster.

The Uncertain Market: If you're not sure what your current home will sell for, or if you're in an area where homes are sitting on the market longer, selling first gives you certainty about your budget for the next home.

The Risk-Averse Approach: Some families simply can't sleep at night carrying two mortgages, even temporarily. If the stress of double payments outweighs the benefits, selling first is the right choice for your peace of mind.

A Cautionary Tale: I had clients who insisted on buying first despite being stretched financially. They found their dream home, bought it, then their original home sat on the market for four months longer than expected. The stress of carrying two mortgages nearly broke their budget and their marriage. Sometimes the conventional wisdom exists for good reasons.

The Financing Options You Should Know About

If you're considering buying first, here are the financing strategies that actually work in today's market:

Bridge Loans: Short-term financing that "bridges" the gap between buying and selling. These typically have higher interest rates but allow you to buy first and pay off the bridge loan when your current home sells.

Home Equity Line of Credit (HELOC): If you have significant equity in your current home, a HELOC can provide funds for a down payment on your next home. You'll carry both payments temporarily, but it's often more affordable than a bridge loan.

Cash-Out Refinance: Refinancing your current home for more than you owe and using the cash for your next down payment. This works if rates are favorable and you have substantial equity.

Dual Mortgage Qualification: Some borrowers can qualify for two mortgages simultaneously, especially if they have strong income and credit. Lenders will count a percentage of your current home's rental potential as income.

Buy Before You Sell Programs: Some lenders offer specialized programs where they'll finance your new home purchase with the understanding that you'll sell your current home within a specified timeframe.

The East Valley Market Reality Check

Let me give you the honest scoop on how current market conditions affect your buy vs. sell first decision.

Gilbert Market Dynamics: Gilbert's market moves fast, especially for homes in top school boundaries. If you're buying in Gilbert, having the ability to make non-contingent offers is a significant advantage. However, Gilbert homes also tend to sell quickly, so if you're selling a Gilbert home, you might have more flexibility.

Chandler's Balanced Approach: Chandler offers a bit more inventory and slightly less competition than Gilbert, which can work in favor of either strategy. The key is understanding which specific Chandler neighborhoods are most competitive.

Mesa's Opportunity: Mesa offers some of the best opportunities for strategic timing. There's more inventory, which means more options for buyers, but also means sellers might need to be more patient and strategic.

The Hybrid Strategies That Actually Work

Sometimes the best approach isn't strictly buy-first or sell-first, but a hybrid strategy that gives you flexibility.

The Contingent Offer with Kick-Out: Make an offer on your next home contingent on selling your current home, but give the seller the right to "kick out" your offer if they receive a non-contingent offer. This keeps you in the running while you market your current home.

The Rent-Back Strategy: Sell your current home but negotiate a rent-back period that gives you time to find and close on your next home. This provides certainty about your budget while avoiding temporary housing.

The Quick Sale, Temporary Housing: Sell your current home quickly (possibly below market value for speed), use temporary housing for 2-3 months, then buy your next home with cash or strong financing. Sometimes the cost of temporary housing is less than the cost of carrying two mortgages.

How to Actually Make the Decision

Here's my framework for helping families decide which strategy makes sense:

Financial Capacity Assessment:

•Can you qualify for two mortgages?

•Do you have 6+ months of reserves for both payments?

•How much of your current home's equity do you need for your next purchase?

Market Timing Analysis:

•How competitive is the market where you're buying?

•How quickly are homes selling in your current neighborhood?

•What's the seasonal timing for your move?

Personal Stress Tolerance:

•How do you handle financial uncertainty?

•How important is avoiding a temporary move?

•What's your timeline flexibility?

Risk vs. Reward Calculation:

•What's the cost of carrying two mortgages temporarily?

•What's the value of making stronger offers?

•What's the cost (financial and emotional) of temporary housing?

Here's My Take

There's no universally "right" answer to the buy vs. sell first question. I've seen both strategies work beautifully and both strategies create problems when they're not matched to the family's situation.

What I always tell clients: Choose the strategy that lets you sleep at night. If carrying two mortgages will stress you out, sell first. If the thought of moving twice and living in temporary housing makes you anxious, consider buying first if you can afford it.

The key insight: In today's East Valley market, having options is valuable. The families who do best are those who understand both strategies, know their financial capacity, and can adapt their approach based on what they find in the market.

What You Should Do Next

If you're considering a move-up in the East Valley, start by understanding your financial options. Talk to a lender about what you can qualify for, and let's discuss the current market conditions in both your selling and buying neighborhoods.

Because here's the thing: the best strategy is the one that gets you into your dream home without creating financial stress or family disruption. With the right planning and market knowledge, we can usually find a path that works for your specific situation.

Ready to explore your options for moving up in the East Valley? Let's chat about what strategy might work best for your family's goals and timeline.