Short answer
Most people either close both on the same day, close the sale first and rent back, or close the purchase first and carry the old home briefly. Each has a cost and a failure point, and you should choose knowingly rather than by default.
Same-day closings
Common and workable, this is what most people do, but everything has to be ready - funding, final walkthroughs, and movers. One delay on either side can cause set-backs all around.
Sell first, then rent back
You close the sale of your current home and stay in the home for an agreed upon period. This buys time to close on your purchase without moving twice. Sometimes a day or two is all it takes. If you are able to accommodate this as a buyer it could be the difference that makes your offer stand out!
Build in a backup
Decide in advance where you would go if a closing slips by a few days or even a week. Short-term housing, family, or storage arranged early costs far less than arranging it in a panic.
What this means for you
Pick your primary plan and your backup plan at the same time. The backup is what keeps the primary plan from becoming a crisis.
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General education from AM Realty MN, brokered by LPT Realty, LLC. Not legal, tax, or lending advice.