If you’re a homeowner in San Pedro or on the Peninsula, the thought of moving has likely crossed your mind. Perhaps you’re dreaming of a home with a bit more space, a panoramic ocean view in Rancho Palos Verdes, or a historic property closer to the vibrant, redeveloping downtown San Pedro. But that dream almost always comes with a big, practical question: what’s the right way to manage selling your current home while buying your next one?
It’s a classic real estate two-step, and it can feel daunting. Should you secure your next home first, or is it wiser to sell your current house to fully understand your financial position? As local real estate professionals, this is a conversation we have with our clients and neighbors every day. There isn’t a single right answer for everyone, but there is a strategic way to approach the decision based on what we’re seeing right now in our unique coastal market.
This month, we want to break down the key considerations to help you decide on the best path forward for your family.
Why Selling First is Often the Savvy Move in Today’s South Bay Market
In many situations, especially within the current dynamics of our local market, getting your current home sold before you buy your next one can provide a significant strategic advantage. It’s a move that prioritizes financial clarity and strengthens your position as a buyer. Here’s a closer look at why this approach works so well for many homeowners here on the coast.
Tapping Into Your Hard-Earned Local Equity
One of the most powerful reasons to sell first is to unlock the equity you’ve built in your home. After years of price appreciation in our desirable coastal communities, this is often a substantial figure. For instance, with the median sales price in San Pedro climbing to $1.05M in the first half of 2025, many local homeowners are sitting on a significant amount of equity, far more than they might realize.
This isn’t just a number on paper; it’s the financial power for your next move. Selling first converts that equity into liquid cash. You can then use those funds for a formidable down payment on your next home, potentially reducing your mortgage, or in some cases, even allowing you to make an all-cash offer. In a market where financial strength matters, having this capital in hand makes your entire move smoother and less stressful on your wallet. It’s the tangible reward for your long-term investment in our community.
The Financial Prudence of Avoiding Two Mortgages
Trying to buy a new home before you’ve sold your old one can mean carrying two mortgages simultaneously, even if it’s only for a few months. That can become a significant financial burden very quickly, especially if unexpected repairs or closing delays pop up on either end of the transaction. As we often discuss, homeownership in our coastal area comes with its own set of considerations, from preparing for heavy winter rains to understanding the unique geology of our Peninsula. Adding the weight of a second mortgage payment to your plate can create unnecessary financial strain and anxiety.
Selling your home first completely removes this risk. It allows you to close one chapter financially before you open the next, ensuring you can move forward with confidence and without the pressure of juggling two major financial obligations. As the experts at Ramsey Solutions advise, “It’s best to sell your old home before buying a new one to avoid unnecessary risks and possible headaches.”
Crafting a Winning Offer: The Power of Being Non-Contingent
This is perhaps the single greatest advantage of selling first. In our local market, we continue to see “persistently lower inventory” and a “tight inventory climate,” which has been an ongoing theme for years. This means that when a well-priced home in a desirable neighborhood hits the market, it often attracts serious attention and competitive offers. Our own data shows that even in a shifting market, Days on Market (DOM) can remain low, just 18 days in San Pedro in the first half of 2025, a clear sign that serious buyers remain active and ready to compete.
When a seller is reviewing multiple offers, they are looking for the cleanest, most reliable one. An offer that is “contingent” on the sale of your current home introduces uncertainty and a longer timeline for the seller. By selling your home first, you eliminate this contingency. You become a buyer with cash in hand, ready to close. This non-contingent status makes your offer incredibly strong and appealing, helping you stand out from the competition and giving you the best possible chance to secure the home you truly want. It signals to the seller that you are serious, financially secure, and can close without complications—often the deciding factor in a competitive situation.
Navigating the Transition: A Practical Look at Temporary Housing
Of course, selling your home first brings up a logical question: “Where will we live in the meantime?” This is the primary trade-off, but it’s more of a logistical step than an insurmountable obstacle. With careful planning, the transition can be managed smoothly.
Once your house sells, you may need a short-term rental or to stay with family or friends until you close on your next home. However, one of the most effective tools we use to manage this is negotiating a “post-closing occupancy” or a “seller rent-back” agreement. This allows you to sell your home to the new buyer but remain in the property as a tenant for a set period, giving you the time you need to find and close on your next home.
As an independent, local brokerage, we believe our job extends beyond the transaction; we’re here to help our neighbors manage the entire transition. Successfully negotiating flexible closing dates or a rent-back agreement is a specific skill that can dramatically reduce stress and logistical headaches. It turns a potential challenge into a manageable part of the process.
A Strategic Comparison for Our Local Market
To help you think through the options, here’s a breakdown of the key factors as they apply to our current market here in the South Bay.
| Key Consideration | It May Make Sense to Sell First If… | It May Make Sense to Buy First If… |
| Financial Power | You want to leverage the full equity from your current home for a strong down payment or a potential cash offer. | You have significant liquid savings for a down payment and are comfortable managing two mortgages temporarily. |
| Offer Strength | You want to present a non-contingent offer, which is highly attractive to sellers in our competitive, low-inventory market. | You’re looking in a less competitive price point or area where sellers may be more open to contingent offers. |
| Market Pace & Timing | You recognize that desirable local homes sell quickly and want to be ready to act decisively when the right one appears. | You’ve found a unique property and are concerned it won’t be available by the time you sell your current home. |
| Transition & Logistics | You are comfortable with a potential temporary move or have an agent skilled in negotiating a seller rent-back to bridge the gap. | Your priority is a seamless, single move, and you want to avoid the logistics of temporary housing. |
The Bottom Line: Your Move, Your Strategy
Ultimately, the decision to buy or sell first comes down to your personal finances, your tolerance for risk, and your family’s specific needs. The last thing you want is to feel pressured or financially overextended during what should be an exciting transition.
In many cases, selling first doesn’t just give you clarity—it gives you options. It empowers you to search for your next home with more confidence, more financial leverage, and less pressure. By understanding your exact budget and being able to make a strong, non-contingent offer, you put yourself in the driver’s seat.
The best way to determine what’s right for you is to have a conversation about your specific situation. If you’re ready to make a move but aren’t sure where to begin, please reach out to us. We can walk you through an analysis of your home’s equity, discuss timing, and provide insights based on what’s happening right here in our San Pedro and RPV neighborhoods so you can decide on the strategy that works best for you.
Mike Harper and Peter Hazdovac are both licensed Realtors® and co-owners of HH Coastal Real Estate, an independent local brokerage. For more info, visit www.hhcoastal.com or email: info@hhcoastal.com.
