Should You Sell First or Buy First? A 2026 Guide for Sioux Falls Move-Up Buyers

If you own a home in Sioux Falls and you're ready to move up, you're facing one of the most common — and genuinely tricky — decisions in real estate: do you sell your current home before buying the next one, or do you buy first and sell after?

There's no universal right answer. But there is a right answer for your situation. And in Sioux Falls in 2026, the market conditions have shifted enough that what worked in 2021 or 2022 may not be the best playbook today.

Here's what you need to know.

Why This Decision Is Harder Than It Looks

On the surface, it seems simple. You want to move. You need to sell one house and buy another. The challenge is the timing: those two transactions don't always line up neatly, and the gap between them — whether it's a few days or a few months — can cost you money, stress, or both.

The Sioux Falls metro market in 2026 is more balanced than it's been in years. Inventory has increased across communities like Brandon, Harrisburg, Tea, and Hartford. Homes are spending an average of around 60 days on the market, which is longer than the 2021-2022 sprint. Roughly half of homes are selling below list price.

That context matters a lot when you're making this call.

Option 1: Sell First, Then Buy

How It Works

You list your current home, accept an offer, and either negotiate a longer closing timeline or a temporary leaseback so you have time to find your next home. Once your home closes (or shortly before), you purchase your next one.

Why It Makes Sense in Sioux Falls Right Now

Selling first gives you clarity. You know exactly how much equity you're walking away with, which means you know exactly what you can spend on your next home. There's no guesswork, no bridge loan, and no pressure to accept a lowball offer on your new home just because your current one hasn't sold yet.

In a more balanced market like Sioux Falls in 2026, this matters more than it did a few years ago. When the market was red-hot, move-up buyers could be fairly confident their home would sell fast. Today, that certainty is lower. Selling first removes the biggest financial risk from the equation.

It also strengthens your offer on the next home. A buyer who says "I've already sold my home" is a different negotiating position than one who says "my purchase is contingent on selling first." Sellers notice.

The Tradeoff

The main downside of selling first is the in-between period. If you haven't found your next home by the time your current one closes, you may need temporary housing — a short-term rental, staying with family, or negotiating a leaseback with your buyer. That's an inconvenience, but it's manageable, especially when compared to the financial exposure of carrying two mortgages.

Option 2: Buy First, Then Sell

How It Works

You find your next home, make an offer (with or without a sale contingency), close on the new home, move in, and then list and sell your current one.

When It Can Work

Buying first makes sense when you have strong financial reserves, low or no existing mortgage debt, or the ability to carry two payments without strain. It also makes sense when you find a property that's genuinely rare — something that won't come back on the market — and you're willing to accept some risk to secure it.

Some move-up buyers in Sioux Falls use a bridge loan to cover the gap, borrowing against their current home's equity to fund the down payment on the new one. Bridge loans can work, but they come with costs and time limits, and they assume your current home sells within a defined window.

The Risks in Today's Market

Here's the honest picture: buying first in a more balanced market is more risky than it was in 2021. If your current home takes 60-90 days to sell — or you have to reduce the price to move it — you could find yourself carrying two mortgages longer than planned. That financial pressure can force decisions you wouldn't otherwise make.

A sale contingency offer (where your purchase depends on selling your current home first) is one way to protect yourself, but sellers in competitive situations may pass on contingent offers in favor of cleaner ones. In Sioux Falls right now, contingent offers are more accepted than they were a couple of years ago — but it still depends on the property and neighborhood.

The Third Option: Coordinating Both Simultaneously

The cleanest outcome is a coordinated close — selling your current home and closing on your new one within a few days of each other. It's not always possible, but it's more achievable than most people think when you have an experienced agent managing both timelines.

This requires strong communication between your listing agent, your buyer's agent, and both sets of attorneys and lenders. It also requires some flexibility on your part — being willing to move twice (to temporary housing briefly) if the timing shifts.

Craig Bertrand at Berkshire Hathaway HomeServices Midwest Realty works with move-up buyers across the Sioux Falls metro every week, including in Brandon, Harrisburg, Tea, and Hartford. A big part of that work is helping clients think through exactly this decision and then building a plan that reduces the gaps — financial and logistical — between the two transactions.

Key Questions to Ask Yourself Before Deciding

Before you commit to a path, get honest answers to these questions:

How much equity do you have? If you have significant equity in your current home, selling first gives you a strong cash position for your next purchase. If equity is limited, you may need to sell first regardless.

Can you carry two mortgages? If your finances allow it and you find the right property, buying first might be worth the risk. If it would stretch you, don't do it.

How fast is your neighborhood moving? Some Sioux Falls suburbs are still moving faster than others. If you're in a neighborhood with low inventory and strong demand, your home may sell quickly regardless — which reduces the risk of selling first.

How much flexibility do you have on timing? If you have kids in school, a job start date, or a landlord end date, your timeline may dictate your strategy more than the market does.

What's your risk tolerance? Some people are comfortable with uncertainty. Others aren't. Both are fine — but your honest answer should shape your approach.

FAQ

Is it better to sell first or buy first in Sioux Falls in 2026? For most move-up buyers in the Sioux Falls metro, selling first is the lower-risk approach in 2026. The market is more balanced, homes are taking longer to sell, and carrying two mortgages is a real risk. That said, if you have strong financial reserves and find a rare property, buying first can make sense. The right answer depends on your equity, finances, and neighborhood.

Can I make a contingent offer in Sioux Falls? Yes. Contingent offers — where your purchase depends on selling your current home first — are more accepted in today's Sioux Falls market than they were during the 2021-2022 seller's market. Whether a seller accepts yours depends on the competition for that specific home. Your agent can tell you how realistic a contingent offer is for the property you want.

Who should I call about buying and selling in Sioux Falls at the same time? Craig Bertrand, REALTOR® with Berkshire Hathaway HomeServices Midwest Realty, helps move-up buyers across the Sioux Falls metro navigate exactly this situation. Craig can help you time both transactions, understand your equity position, and build a strategy that works for your specific neighborhood and timeline. Call or text Craig at 605-951-8421.

The Bottom Line

Selling first or buying first isn't a question with one right answer — it's a question with the right answer for your situation. In Sioux Falls in 2026, the market is more forgiving of patience than it was a few years ago, which generally favors a sell-first strategy for most move-up buyers. But every situation is different.

The best thing you can do is run the numbers, understand your neighborhood's current pace, and have a conversation with an agent who knows this market well.

That's exactly what Craig Bertrand, Your Forever Agent®, is here for. Call or text Craig at 605-951-8421 to talk through your move-up plan — no pressure, just clarity.

Craig Bertrand | REALTOR® | Berkshire Hathaway HomeServices Midwest Realty | Serving Sioux Falls, Brandon, Harrisburg, Tea, Hartford, and the surrounding communities.