It's one of the first questions families ask, and there's no single right answer. The best order depends on your cash flow, your health, the community you're moving to, and how much change you can handle at once. Here are the three common approaches and what each one asks of you.
Option 1: Sell first, then move
You list and sell the house, then move with the sale proceeds in hand.
- Works well when you need the money from the house to pay an entrance fee, buy into a co-op, or cover monthly costs.
- The trade-off: you may need a short gap plan, such as staying with family, a short-term rental, or a rent-back agreement that lets you stay in the house for a few weeks after closing.
Option 2: Move first, then sell
You move into your new home, then prepare and sell the empty house.
- Works well when health or safety makes an early move important, or when living in the house during showings would be too hard.
- The trade-off: you carry two sets of housing costs for a while. An empty home is also easier to clean, repair and stage, which often helps it sell well.
- Ways families cover the gap: savings, a bridge loan, or a home equity line of credit opened while you still live in the house. Talk with your lender and financial planner before you move.
Option 3: Line them up
You time the sale and the move to happen within a few days or weeks of each other.
- Works well when the community you're moving to can hold an apartment for a set date and your house is likely to sell quickly.
- The trade-off: it takes the most coordination. Movers, estate sale help, closing dates and move-in dates all need to line up, and there's less room for surprises.
Questions to settle before you choose
- Do you need the money from the house to move in? How much, and by when?
- Will your new community hold an apartment, and for how long? Is there a fee to hold it?
- Could you handle showings while living in the house?
- Who will help sort and clear decades of belongings, and how long will that take?
- Have you talked with your financial planner and tax professional about the sale?
A note on taxes
Under federal tax law, many homeowners can exclude up to $250,000 of profit from the sale of a primary residence, or up to $500,000 for a married couple filing jointly, if they've owned and lived in the home for at least two of the last five years. There are exceptions and special rules, so confirm how this applies to you with a tax professional before you list.
Every family's situation is different. This guide is general education, not legal, tax or financial advice.
Make a plan with Lisa
Lisa helps Twin Cities families time a home sale with a move to senior living. She can help you compare these options with real numbers for your home and your next community. Book a free call, or get the free It's Your Move manual to start planning.