Should You Buy or Sell First in Memphis, TN? | Kenneth Woods
By Kenneth Woods, Memphis-area real estate agent with eXp Realty
If you need the proceeds from your current home to purchase your next one, selling first is often the more practical starting point. Buying first may work if your lender confirms you qualify while carrying both homes and you have enough cash for the purchase and an extended overlap. For Memphis homeowners, the right order depends on your finances, your property's likely selling timeline, and the availability of homes that meet your needs.
Whether you are moving within Memphis, downsizing in Bartlett, or looking for your next home in Germantown or Collierville, plan the sale and purchase together before committing to either transaction.
Should I sell my Memphis home before buying another?
Selling first gives you a clearer picture of the money available for your next purchase. It can also reduce the risk of carrying two mortgage payments. The tradeoff is timing: you may need temporary housing, storage, or a second move if your next home is not ready.
This approach deserves consideration when your down payment depends on sale proceeds, your budget cannot comfortably absorb overlapping expenses, or you want to know your actual sale results before choosing a price range. Begin looking at replacement homes early, even if you wait to make an offer.
When does buying first make sense?
Buying first can give you time to find the right home and move before preparing your current property for showings. However, your existing mortgage and other debts can affect qualification. A lender should review your complete situation before you make an offer.
Build a budget that includes both properties' payments, utilities, insurance, maintenance, moving costs, and a reserve for delays. Ask what happens if your current home takes longer to sell or sells for less than expected. Do not assume you can use future sale proceeds as cash available today.
How do I estimate the money I will have after selling?
Start with a realistic sale-price range supported by recent comparable sales, then request an estimated seller net sheet. Your sale price is not the same as the cash you receive at closing.
Confirm your mortgage payoff with your lender.
Account for negotiated brokerage compensation and closing expenses.
Include potential repairs, buyer credits, tax adjustments, and other transaction charges.
Set aside money for moving, storage, and any temporary housing.
The net sheet is an estimate; your closing documents determine the final amounts. For public property information, the Shelby County Assessor of Property provides residential property records. Tax records are useful background, but a pricing plan should also reflect comparable sales and your home's current condition.
Why does the specific Memphis-area location matter?
A single Memphis-wide number cannot tell you how your home will compete. A Midtown bungalow, an East Memphis ranch, and a larger suburban home can attract different searches and face different competing listings.
Review recent sold homes with similar size, condition, features, and location. Also look at active competition and recent price changes. Separately, study the homes available where you want to move. Your sale market and purchase market may differ, even within Shelby County.
Compare the full cost of each replacement property, including property taxes, insurance quotes, any association fees, maintenance needs, and your actual commute. Verify school assignments and municipal boundaries directly for the address instead of relying on a listing's neighborhood label.
Can I make an offer contingent on selling my current home?
You can ask for an offer to include a home-sale contingency. Whether a seller accepts it depends on the offer, competing interest, and the terms negotiated. A contingency is not automatic protection: the written contract controls deadlines, obligations, and what happens if the sale does not occur.
Discuss whether your current home must be listed, under contract, or closed by a particular date. Have your agent explain the proposed terms, and seek legal advice when needed before signing. Prepare your home for sale early so your timeline is grounded in an actionable plan.
Can both closings happen on the same day?
They can sometimes be coordinated, but a same-day plan leaves little room for delays. Funding, document review, the buyer's financing, or an unresolved closing issue can affect the sequence. Ask the closing professionals and lender when proceeds will actually be available for your purchase.
Keep a backup plan for lodging and belongings. Possession does not always occur at the same moment as closing. Any temporary occupancy or rent-back arrangement should be negotiated in writing and reviewed for lender and insurance requirements.
What should I do before listing or making an offer?
Talk with a lender. Compare qualification and cash requirements for selling first and buying first.
Get a property-specific pricing review. Request comparable sales, a preparation plan, and an estimated seller net sheet.
Define your next-home needs. Choose a price range, locations, must-have features, and a realistic move window.
Build two timelines. Include inspections, financing, closing, possession, and a contingency plan for delays.
Review the numbers before committing. Use written estimates and actual quotes instead of assumptions.
Frequently asked questions about buying and selling in Memphis
Do I need to find my next home before listing?
No. You can research inventory and financing before listing without committing to a purchase. If suitable homes are limited, discuss temporary housing and timing options before accepting an offer on your current home.
Does mortgage preapproval guarantee I can buy before selling?
No. Ask the lender whether the approval depends on selling your current home and which conditions remain. Final approval depends on the lender's review and the proposed transaction.
Should I price my current home based on what I need for the next one?
Your financial goal matters to your plan, but buyers compare your home with alternatives. Use market evidence to set a competitive asking price, then decide whether the expected proceeds support your next move.
Plan your Memphis move with Kenneth Woods
I am Kenneth Woods, a Memphis-area real estate agent with eXp Realty. If you are considering selling your current home and buying another, let's discuss your property, your preferred locations, and your move timeline. We can build a coordinated plan and identify the questions your lender and closing professionals need to answer.
Explore homes and contact Kenneth Woods. For more background, read Buying or Selling a Home in Memphis, TN: Your Questions Answered.
Helpful resources: The CFPB's homebuying readiness guide explains financial preparation, and its Buying a House tools help you compare mortgage options. This article provides general planning information; lender requirements and negotiated contract terms vary.
