The direct answer
Buying first can work when qualification, equity access and reserves are strong enough to carry both properties. Local market knowledge should shape the expected sale time and net proceeds—not an optimistic list-price assumption.
Estimate true net proceeds
Start with a realistic sale range, then deduct existing liens, brokerage, transfer tax, title charges, concessions, repairs and moving overlap. The resulting cash—not gross equity—funds the next step.
Model Michigan taxes on the new home
The seller’s current tax bill may be capped. Estimate future taxable value after transfer and account for principal-residence status. The new payment should not be based solely on the listing’s tax history.
Neighborhood and property matter
A turnkey Birmingham home, a unique lake property and a suburban home needing updates have different market-depth and timing risks. Use comparable pending and closed sales, not only active listings.
Protect the exit
Decide in advance when to reduce price, whether temporary financing can be extended, how much liquidity must remain and what happens if the sale overlaps longer than planned.
Numbers to gather before buying first
A move-first plan should be designed around net equity and the downside case rather than a perfect sale. These inputs make the overlap risk visible.
- Realistic current-home value range and mortgage payoff
- Estimated selling costs, repairs and concessions
- Cash available without the sale and minimum reserves to retain
- New-home price, taxes, insurance and association dues
- Carrying-cost scenarios for 30, 60, 90 and 120 days
Frequently asked questions
How should I estimate sale proceeds?+
Use a realistic price range and deduct liens, brokerage, transfer tax, title charges, repairs, concessions and carrying costs.
Will the new home’s taxes match the listing?+
Not necessarily. Michigan taxable value may uncap after transfer, so model a forward-looking estimate.
Should I make a non-contingent offer?+
Only after qualification, equity access, reserves and the downside case have been reviewed. Competitive does not have to mean financially exposed.