Jeff Merrill | Sioux Falls Realtor

By Jeff Merrill | July 28, 2026

You’ve outgrown the house in Brandon, or the empty nest in McKennan Park is finally too much to clean. Either way you’re stuck on the same question almost every move-up buyer in Sioux Falls hits: do you sell your current home first, or lock down the next one before you list?

There’s no single right answer. But there is a right answer for your situation, and it comes down to three things — your cash position, your risk tolerance, and what the market is doing the week you make your move. Let’s walk through all three.

Sell first or buy first — what each choice costs you

Start with the money, because that’s usually what decides it.

When you sell first, you know your exact number. Not your Zestimate, not what your neighbor got in 2022 — the actual check you’ll walk away with after your mortgage payoff, the South Dakota transfer fee, title work, and commissions. On a $335,000 sale, that’s real money you can now put down on the next place. If you want to see how that number gets built, I broke down every seller cost in my guide on what it costs to sell a house in Sioux Falls.

Selling first also makes you a clean buyer. No home-sale contingency, no “we just need our place to close.” In a market where inventory is tight, that’s the difference between your offer getting accepted and getting passed over.

The downside is obvious: you might sell and have nowhere to go yet. More on how to handle that below.

When you buy first, you get the opposite trade. You never scramble for housing, you move on your timeline, and you can take the right home when it shows up instead of forcing a match. But you’re now on the hook for two mortgages, two insurance bills, and two sets of utilities until your old house closes. If it sits — and at roughly 84 average days on market in Sioux Falls this summer, some do — that overlap gets expensive fast.

Buying first only makes sense if you can genuinely afford the carry, or you’ve lined up financing to bridge it. That’s the next piece.

How to buy first without drowning in two payments

If you want the new house before you sell, you have three main tools. None of them are free, so match the tool to your situation.

A bridge loan is short-term financing — usually 6 to 12 months — secured by your current home. It hands you the cash to cover the down payment and closing on the next house, then gets paid off when your old home sells. The catch is cost: bridge loans in this market run roughly 8.5% to 11% interest, plus a 1% to 2.5% origination fee. That’s fine for a two- or three-month overlap. It hurts if your house lingers.

A HELOC — a home equity line of credit on your current home — is the cheaper cousin, often 7% to 9% and only charged on what you actually draw. The trap is timing. Most lenders take two to six weeks to set up a HELOC, and almost none will open one on a house that’s already listed. So if this is your plan, open the line before you put a sign in the yard. Waiting until you’re under contract on the new place is too late.

A home-sale contingency costs nothing up front. Your purchase offer simply states it’s contingent on your current home selling. The problem is what it does to your negotiating position. Inventory in Sioux Falls is down about 30% year over year, sitting near a 3.3-month supply — that still favors sellers. When a seller has other offers, a contingent one goes to the bottom of the pile. Contingencies work best on homes that have sat a while, in a slower pocket, or on new construction in Tea and Harrisburg where a builder with standing inventory has more patience than an individual seller.

Whichever route you pick, keep your earnest money protected with the right contingencies so a financing hiccup doesn’t cost you your deposit. I covered how that money works and when it’s refundable in my post on earnest money in Sioux Falls.

How to sell first without ending up homeless

The fear that keeps people from selling first is simple: what if the house closes and I have nowhere to land? It’s a solvable problem.

The cleanest fix is a rent-back (sometimes called a post-closing occupancy agreement). You sell your home, collect your proceeds, and then rent it back from the new owner for a set number of days — often up to 30 or 60 — while you close on and move into your next place. Buyers who plan to occupy the home eventually are frequently fine with this, especially if it wins them the deal.

The second tool is an extended or delayed closing. You negotiate a longer window between accepted offer and closing on the sale of your home, giving you time to get under contract and close on the next one. In a seller-friendly market you have room to ask for terms like this.

You can also line up your next purchase in parallel. Selling first doesn’t mean sitting on your hands. The moment your home goes under contract, you’re a fully qualified, non-contingent buyer — the strongest kind. With your true proceeds and down payment nailed down, you can move on the right listing in Harrisburg, Tea, or NW Sioux Falls with confidence. If down payment funds are tight even after your sale, it’s worth checking whether you qualify for down payment assistance.

One local note on mechanics: in South Dakota your closing runs through a title company, not an escrow company like you’d hear about on the coasts. Firms like Eastern Title and First Dakota Title coordinate the payoff, the transfer fee, and the proceeds, so both sides of your move stay orderly even when the sale and purchase are days apart.

What most Sioux Falls sellers should do right now

Given where the market sits in mid-2026 — median price around $335,000, inventory down sharply, and roughly a 3.3-month supply — most move-up sellers are in a decent spot to sell first and buy second. Homes that are priced right and shown well are still moving, and a non-contingent buyer with proceeds in hand carries real weight against tight inventory.

The exception is the buyer who finds the home — the rare McKennan Park bungalow or the exact Brandon floor plan — before their own is listed. If that happens and the numbers work, a bridge loan or HELOC can absolutely justify buying first. Just go in with your eyes open about the carry, and price your current home to sell rather than to test the market.

And keep one more thing in mind on the buying side: in a market appreciating faster than closed comps, appraisals sometimes come in under contract price. Know your options there before you write an aggressive offer — I walked through them in what to do if your Sioux Falls appraisal comes in low.

Frequently asked questions

Is it better to buy or sell a house first in Sioux Falls?
For most people, sell first. You lock in your actual proceeds, avoid carrying two mortgages, and become a stronger, non-contingent buyer. Buy first only if you can afford both payments or you’ve arranged a bridge loan or HELOC to cover the gap.

Can I make an offer contingent on selling my current home?
Yes, but weigh it against the market. With Sioux Falls inventory down around 30% and supply near 3.3 months, sellers with multiple offers tend to pass on contingent ones. Home-sale contingencies work best on homes that have sat, in slower pockets, or on builder inventory in Tea and Harrisburg.

How much does a bridge loan cost?
Expect roughly 8.5% to 11% interest plus a 1% to 2.5% origination fee, on a term of about 6 to 12 months. It’s cost-effective for a short overlap of a couple months and gets pricey if your current home takes a while to sell.

Can I stay in my house after I sell it?
Often yes, through a rent-back agreement where you rent the home from the new owner for a set period — commonly up to 30 or 60 days — while you close on your next one. Many buyers accept this, especially if it helps them win the home.

How long do homes take to sell in Sioux Falls right now?
Homes averaged about 84 days on the market in June 2026, a few days longer than a year earlier. Well-priced, well-presented homes move faster, but you should build that timeline into any plan to buy and sell around the same time.

Ready to map out your move?

The buy-or-sell-first decision is really a sequencing and cash-flow problem, and it’s a lot easier to solve when someone runs your actual numbers with you — your likely net proceeds, your carrying cost if the timing overlaps, and which financing tool fits.

That’s a conversation, not a sales pitch. If you’re weighing a move anywhere in the Sioux Falls metro, call or text me at 605-201-2846, or visit siouxfallsgreathomes.wordpress.com, and we’ll build a plan that fits your situation and your timeline.

About Jeff Merrill: Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. Jeff helps buyers and sellers navigate move-up transitions, new construction, and the full closing process with direct, no-hype guidance. Reach him at 605-201-2846.