Week 5: Buying First, Then Selling

Welcome to the final part of our 5-part series on how to move up to your next home with as little stress as possible. Whether you’re upgrading to a bigger home in San Pedro, Long Beach, or another part of LA, this guide will walk you through the best strategies.

This article is for move-up buyers who plan to buy their new home first and then sell their current home. To do this, your lender must approve you for purchasing your next home before selling your current one.

I’ll cover how to ensure you don’t end up carrying two homes for too long—and how you might even keep your first home as a rental property if that’s the right move for you.

Before we start, be sure to read the previous article in this series: The Big Move-Up Buyer Question: How Do You Buy and Sell at the Same Time?

Step 1: Get Pre-Approved by a Lender

Before house hunting, you need to know whether your lender will allow you to buy first. If not, you’ll need to sell first—check out our article Move-Up Strategies to Sell First, Then Buy. (LINK)

By now, you should also have read What Move-Up Buyers Need to First Ask Themselves. (LINK) These questions will help define your budget, ideal neighborhoods, and new home requirements.

Knowing this information in advance helps you move quickly and confidently when the right home comes on the market.

Step 2: Financing & Down Payment Strategies

Not everyone qualifies to buy a new home before selling their current one. Your lender will examine your debt-to-income ratio—typically 45% of your income (including your mortgage, car loans, and other debts). If your ratio is too high, you may need to sell first.

Since you won’t know your exact net proceeds until you sell, here are a few ways to secure a down payment without selling first:

1. Borrow from Your Current Home

• Consider a Home Equity Line of Credit (HELOC) or a cash-out refinance before listing your home.
• Lenders may not favor this approach, so plan ahead—possibly a year in advance.

2. Borrow from Yourself

• If you have funds invested with a financial advisor, you may be able to borrow from your portfolio without selling stocks.
• This strategy acts as a self-funded bridge loan with potentially lower costs.

3. Bridge Loans

• Some lenders offer bridge loans to help you buy before selling.
• These can be expensive, so we typically recommend exploring other options first.

Step 3: Finding Your New Home First

DO NOT start searching for a new home until you’ve had a detailed conversation with your agent and lender about financing.

One major perk of buying first? No rush. You can take your time finding the perfect home—whether it’s a historic craftsman in Long Beach, an ocean-view home in San Pedro, or a modern condo in Downtown LA.

Before moving in, you can also:

• Renovate or make upgrades while the house is empty.
• Stage your current home for sale with minimal clutter.

Step 4: Timing It Right to Avoid Two Mortgages for Too Long

Owning two homes simultaneously means double mortgage payments, but you can minimize this period by timing your sale strategically.

Consider seasonal trends in Long Beach, San Pedro, and Greater LA:

• Spring & early summer: Peak selling season with more buyers.
• Late summer & fall: Market slows, but still active.
• Winter holidays: Slowest market—timing is key!

Work with an agent early to analyze market trends in your buying and selling neighborhoods.

Step 5: Prepping Your Current Home for Sale

Even before buying, start preparing your home for sale:

• Declutter & depersonalize your space.
• Make minor repairs (paint touch-ups, landscaping, etc.).
• Understand HOA rules if selling a condo in Downtown Long Beach or San Pedro.
• Price competitively—overpricing can leave your home sitting on the market too long.

Final Thoughts

This concludes our How to Move Up to Your Next Home in LA, San Pedro, or Long Beach with Ease series!

Key Takeaways:

• Plan well in advance—start talking to a lender and agent early.
• Rely on your experts—your agent and lender should be involved from the start.
• Don’t house hunt first—secure your financing strategy first.
• Timing is everything—market conditions will impact your buying and selling strategy.

Need help mapping out your move-up strategy? Let’s create a plan together! Reach out today to discuss the best approach for your specific situation.