Best strategy for long move depends on many factors

Ilyce Glink and Samuel Tamkin

Q: My wife and I are planning to move across the country in the summer of 2019. How does one go about finding a house from 1,500 miles away?

Can we use the equity in our current home (such as a second mortgage or an equity line of credit) for a down payment? Is it better to sell, move and then buy? Or buy, move and then sell?

A: Whether you should sell first and then buy, or vice versa, depends on area real-estate markets and your finances.

Right now, the market in many areas of the country is active, with homes selling quickly. If you list your home today, you might sell it before you’ve found a place to live across the country. The upside: You wouldn’t need to borrow money because you’d have the cash from the sale.

On the other hand, if homes are selling quickly in your new neighborhood of choice, you might want to make an offer, then rush to prepare your house for sale.

If the area you live in is a slower market, you might need more time to find a buyer. If you cannot afford two homes for a prolonged period, you should sell first and then buy.

On the flip side, if you’re seeking a home in a market on the other coast where homes are selling quickly, you might lose out on one if you don’t make an offer. But it’s better to lose the home than end up in a financial pitfall.

The financing comes down to whether you have good credit and are employed or receiving some regular cash (from, say, Social Security or a pension). If you’re employed, you should be able to get financing from a local lender. If you’re retiring and plan to use your cash from the home sale to finance the purchase (but might need a down payment and temporary loan until the property closes), you should proceed carefully.