Should You Sell or Rent Your Home Before Buying Another?
2 min read
Deciding whether to sell or rent your current home before buying a new one is a common dilemma for homeowners. There’s no one-size-fits-all answer—it depends on your financial situation, market conditions, and personal goals. Here’s a balanced look at both options to help you make an informed decision.
Renting Your Home: When It Makes Sense
Renting out your home can be a strategic move under certain conditions:
Potential for Appreciation: Homes in many parts of New York have continued to increase in value. For example, statewide home prices rose about 7% year-over-year as of 2025, according to recent market reports.
Financial Flexibility: Renting can bridge the gap if selling your home wouldn’t provide enough cash to comfortably buy your next property.
Tax Benefits: Owning a rental may allow deductions on rental income and property expenses. Plus, you could qualify for capital gains tax exemptions when you eventually sell.
Costs to Consider When Renting:
Property management fees (if you hire someone)
Ongoing maintenance and repairs
Landlord insurance
Possible vacancies with no rental income
Taxes on rental income
Renting can provide income and long-term financial benefits, but it also comes with responsibilities and risks.
Selling Your Home: When It Might Be Better
Selling your home first is often appealing in these scenarios:
Immediate Liquidity: You’ll have cash to fund your next purchase.
Market Conditions: In many areas across New York State, median home sale prices have increased 6–8% over the past year, making it an opportune time to sell.
Simplicity: No landlord responsibilities or rental management to worry about.
Drawbacks of Selling:
You might miss out on future appreciation.
Selling could trigger capital gains taxes (though primary residence exemptions may apply—up to $250,000 for individuals, $500,000 for married couples).
Timing the sale and purchase can be tricky, possibly requiring temporary housing.
Questions to Ask Yourself
Do I need immediate cash from my home sale to buy my next property?
Am I prepared to manage a rental property, including maintenance, tenants, and vacancies?
Could renting my home provide the financial flexibility I need for my next purchase?
How important is simplicity and avoiding landlord responsibilities to me?
Would I like to retain potential future appreciation and tax benefits?
What are my long-term plans for living in or near my current neighborhood?
Final Thoughts
Whether you decide to sell or rent, the key is making a choice that aligns with your financial situation, lifestyle, and long-term goals. Both options have benefits and trade-offs, and the right path will look different for every homeowner.
If you’re feeling uncertain, don’t navigate this decision alone. Reach out today—I can help you evaluate your options, understand the market, and create a plan that works for you. Your next move should feel confident, informed, and right for your future.
