Are you trying to decide whether to buy your next Spokane Valley home before you sell your current one? You’re not alone. Timing both moves is tricky and it affects your cash flow, stress level, and negotiating power. In this guide, you’ll learn how Spokane Valley market conditions, financing options, and practical planning shape the right choice for you. Let’s dive in.
How Spokane Valley market conditions matter
Your decision works best when it matches what the local market is doing. Before you choose a path, confirm these indicators for Spokane Valley:
- Inventory and absorption: Low inventory usually means homes sell faster and buyers have fewer options. Higher inventory gives you more choice but can slow your sale.
- Price trend and median sale price: Rising prices can reward buying sooner; flat or falling prices can reward waiting or selling first.
- Days on Market and sale-to-list ratio: Short DOM and strong sale-to-list ratios mean your sale may move quickly. Longer DOMs call for more runway and reserves.
- Mortgage rates and affordability: Higher rates reduce purchasing power and can change what you qualify for if you carry two mortgages.
- Seasonality: Spring and summer are typically busier in the Pacific Northwest, which can shorten market time and improve pricing.
Tip: Use current monthly stats from the Spokane Association of REALTORS and NWMLS. Recheck the week you plan to list or write an offer.
Pros and cons of buying before selling
Buying first can work well, but it comes with tradeoffs.
Benefits
- Flexibility to shop without rushing and choose the right home.
- Potential edge when making a strong, non-contingent offer.
- Smoother move if you align closings or negotiate a rent-back.
Drawbacks
- Carrying costs for two homes: mortgage, taxes, insurance, utilities, maintenance.
- Qualification risk if your debt-to-income is tight.
- Price and time risk if the market cools and your sale takes longer.
- Extra coordination and logistics if you need temporary housing.
Which strategy fits your situation?
Scenario 1: Strong finances in a tight market
If inventory is low and your finances are solid, buying first with cash or a bridge solution can help you win a competitive home. Plan for a realistic sale timeline and keep a reserve to cover both homes for a few months.
Scenario 2: Limited equity or tight debt-to-income
If your equity is modest and your debt-to-income is near lender limits, selling first is safer. A contingent offer may be weaker in a competitive market, so consider temporary housing or a carefully timed closing.
Scenario 3: Equity-rich and cautious
If you have significant equity but want to limit risk, consider a HELOC or bridge loan to secure the next home, set a minimum acceptable net price for your sale, and use a short rent-back to avoid moving twice.
Scenario 4: Need certainty to finance
If lender approval depends on clearing your current mortgage, sell first, move into a short-term rental, then buy with a clean, non-contingent offer. You’ll reduce financial risk and gain negotiating power as a buyer.
Ways to buy before you sell
Cash purchase
- Pros: Strongest offer with no financing contingency; faster closings; simple timing.
- Cons: Ties up capital and reduces your cash cushion.
Bridge loan or short-term acquisition loan
- Pros: Uses your current home’s equity to fund the next purchase; avoids a home-sale contingency.
- Cons: Higher rates and fees; lender approval and equity requirements apply.
HELOC or home equity loan
- Pros: Access equity for a down payment; setup can be faster than a bridge, depending on lender.
- Cons: Requires sufficient equity and acceptable debt-to-income; HELOC rates can change.
Contingent offer
- Pros: Limits financial risk because you don’t carry two homes.
- Cons: Often weak in competitive markets; sellers may require strict timelines or kick-out clauses.
Seller rent-back or leaseback
- Pros: Coordinates move-in and move-out without a double move.
- Cons: Needs clear terms on timing, condition, insurance, and responsibility.
Temporary rental between closings
- Pros: Maximizes flexibility and reduces pressure to accept a low sale price.
- Cons: You move twice and take on extra cost.
Savings, investment liquidation, or family loan
- Pros: Avoids extra loan fees and underwriting complexity.
- Cons: Possible tax and opportunity-cost considerations; treat family loans with clear terms.
How lenders view two mortgages
Lenders look at your combined debt-to-income, credit, reserves, and equity. Even if your down payment comes from equity, underwriters usually count both mortgage payments and may require several months of reserves that cover both homes. Ask for a pre-approval that explicitly accounts for buying while you still own.
Timing and logistics in Spokane Valley
Plan your calendar before you write offers.
- Listing prep and staging: 2 to 6 weeks is common.
- Time on market: Check current DOM for your neighborhood using recent sold comps.
- Closing timelines: Most financed purchases close in 30 to 45 days. Cash can close faster.
- Coordinating two closings: Align contingency timelines, closing dates, and possession. Consider escrow holdbacks for repairs or a short rent-back to smooth the move.
- Seasonality: Spring and early summer activity can shorten market time; build buffer if you plan to sell during slower months.
Contracts and protection
- Home-sale contingency: Conditions your purchase on selling your current home within a set window. Sellers may want proof of listing and status updates.
- Kick-out clause: Lets a seller keep marketing and accept another offer unless you remove your contingency in a defined period.
- Rent-back or temporary occupancy: Details occupancy length, payment, insurance, liability, and property condition.
- Escrow holdback: Keeps funds in escrow for agreed repairs or tasks after closing.
Use clear, written terms for deadlines, responsibilities, and condition so everyone knows the plan.
Taxes and disclosures in Washington
- Capital gains exclusion: Many sellers can exclude a portion of gain on a primary residence if the IRS ownership and use tests are met. Review IRS Publication 523 for details and talk with your tax advisor.
- No state income tax: Washington does not tax income, but you will see local closing cost prorations and property tax adjustments. Check schedules with the Spokane County Assessor and Treasurer.
- Seller disclosures: Washington requires a standard property disclosure form. Confirm current requirements with your real estate professional or a Spokane Valley real estate attorney.
Quick decision checklist
Use this shortlist before you choose a path:
- Pull your current mortgage payoff and estimate equity.
- Request a Spokane Valley comparative market analysis for realistic price and DOM.
- Get a lender pre-approval that includes reserves and options like bridge loans or a HELOC.
- Add up carrying costs for two homes: mortgage, taxes, insurance, utilities, HOA, and maintenance.
- Decide your acceptable worst-case sale price and maximum months you can carry both.
- Price out temporary housing or a rent-back and confirm availability.
- Set a clear plan for contract timelines, contingencies, and move dates.
How Cross Realty can help
You deserve a plan that fits your life, not a template. Our team pairs neighborhood-level knowledge in Spokane Valley with data-informed guidance so you can choose with confidence. We can prepare a precise CMA, coordinate a buy-then-sell timeline, introduce you to trusted local lenders, and negotiate tools like rent-backs or kick-out clauses to reduce stress. When the time is right, we will market your sale professionally and help you write a competitive offer on your next home.
Ready to talk through your situation and options? Schedule a Free Consultation with Ray Cross.
FAQs
Can you buy a Spokane Valley home before selling your current one?
- Yes, if your finances support it. Lenders usually count both mortgages and require reserves, so get a pre-approval that reflects two payments.
What if your offer is contingent on selling your home?
- In competitive markets, contingent offers are less attractive. In slower markets, a seller may accept one with firm timelines or a kick-out clause.
What is a bridge loan and who should use it?
- It is a short-term loan that uses your current home’s equity to buy the next home. It helps when you need speed and a stronger offer, but costs and qualifications vary.
How long does closing take in Spokane Valley?
- Most financed deals close in 30 to 45 days. Cash can close faster if title, inspection, and funds are ready.
How do rent-backs work if you buy first?
- A rent-back allows a seller or buyer to stay in the home for a set time after closing. The agreement should define payment, length, insurance, and condition.
What taxes apply when you sell your primary residence?
- Many sellers qualify for a capital gains exclusion if IRS ownership and use rules are met. Washington has no state income tax, but local prorations still apply.
