Should You Sell First or Buy First? A Triangle Homeowner’s Guide to Using Your Equity for the Next Down Payment

If you’re thinking about moving in the Raleigh or Cary area, one of the biggest questions you’ll face is:

“Do I sell my current home first… or buy my next home first?”

For many Triangle homeowners, the pressure comes from one place:
You need the equity from your current home to fund the down payment on your next one.

The good news? You have three clear paths, each with different benefits, risks, and timelines. In this guide, I’ll break down what each option looks like in real life — and how homeowners across Wake County are making it work smoothly.

Option 1: Sell First, Then Buy (The Safest Financial Move)

For many homeowners, selling first is the cleanest and lowest-risk option.

Why it works well

• You know exactly how much equity you’ll walk away with

• You avoid carrying two mortgages

• Your buying budget becomes crystal clear

• Your offer on the next home is stronger because you’re not guessing your proceeds

Challenges to plan for

• You may need temporary housing or storage.

• Finding the next home can feel time-compressed once you’re under contract.

• Coordinating two closings takes strategy and experience.

Pro Tips for Selling First (Triangle Edition)

• Rent-Back Agreements:
This is one of the best tools in a low-inventory market. You sell your home, close on it, and stay in it for 30–59 days while searching for your next one.

• Same-Day Closings:
With tight coordination, some clients sell in the morning and buy in the afternoon, avoiding double moves altogether.

Best for: Homeowners who want financial certainty and prefer low risk.

Option 2: Buy First Using Special Financing (More Convenience, Less Stress)

If you qualify, buying first gives you the comfort of moving once and shopping at your own pace.

Benefits

• You’re never “in between” homes

• Your offer is far more competitive (no sale contingency)

• You can take your time prepping your current home for maximum value

Drawbacks

• You may have to carry two mortgages temporarily

• Qualification can be tighter unless you use a specialty program

• Some lenders require strong debt-to-income ratios

Ways Triangle Buyers Make This Work

• Sale Contingencies
Not ideal in competitive neighborhoods, but sometimes possible with motivated sellers.

• Low Down Payment → Recast
Some lenders let you buy with a smaller down payment, then apply your sale proceeds later and reduce your monthly payment.

Best for: Homeowners with strong income who want convenience and flexibility.

Option 3: Use Your Equity Before You Sell (HELOC, Bridge Loan, or “Buy Before You Sell” Programs)

This is the most common path for homeowners who need their equity for the next down payment but don’t want to sell first.

How It Works

You access some of your equity before listing your home, buy the new house, then pay off the short-term loan once your current home sells.

Popular Options in North Carolina

1. HELOC (Home Equity Line of Credit)

• Open a line of credit on your current home before listing

• Use that for the down payment on the new home

• Pay off the HELOC when your home sells

2. Bridge Loan

A short-term loan that advances a portion of your equity upfront.

3. “Buy Before You Sell” Programs

Several lenders and third-party companies in the Triangle help homeowners:

• Make a non-contingent offer

• Use their equity upfront

• Settle everything once your current home closes

Risks to Be Aware Of

• You must qualify for the new mortgage and the short-term loan

• Payments can stack temporarily

• Timing is crucial, these solutions must be set up before listing your home

Best for: Homeowners with equity who want to avoid temporary housing and still stay competitive as buyers.

So… What’s the Best Option?

There is no one-size-fits-all answer.

Your ideal path depends on:

• Your estimated equity

• Your monthly comfort level

• Your risk tolerance

• Your desired timeline (school calendar, job change, lease end, etc.)

• Whether your next home is move-in ready or new construction

In the Triangle, I see all three options work successfully as long as the plan is made before the home hits the market.

Need Help Figuring Out Your Best Path?

If you’re thinking about selling in Raleigh, Cary, Apex, Holly Springs, or Fuquay-Varina, I can run a quick strategy analysis:

✓ Estimate your equity
✓ Outline your best financing options
✓ Map out a timeline that avoids double moves
✓ Show what your purchase power looks like today