The Costly Mistake Homeowners Make When Moving (And How to Avoid It)
Why selling first gives you the ultimate advantage in LA's luxury market
If you own a home in Hancock Park, Windsor Square, Larchmont Village, Miracle Mile, or Fremont Place, you're likely sitting on substantial equity—and considering your next move. But before you start house hunting, there’s a critical decision that could protect your finances and give you a strategic edge:
The mistake? Most homeowners buy first, then try to sell.
In today's Los Angeles housing market, that move often results in missed opportunities, weaker offers, and the financial pressure of covering two luxury properties. Interest rates currently range from 6.5% to 7% (Freddie Mac, Aug 2025).
The smarter strategy? Sell first.
Why Most Homeowners Get This Backwards
It seems logical: find your next home, secure it, then list your current one. But in Hancock Park—where home data shows median sale prices at $3.1M (Redfin, Aug 2025)—that logic can backfire.
Here's what can happens when you buy first:
- Double mortgage payments carrying two homes
- Desperate selling pressure when you realize you can't afford both properties
- Bridge loan fees between $30–$60K depending on duration, rate, and points (Investopedia)
- Weakened negotiating position—especially if sellers know you're under pressure
- Reduced listing price on your home just to speed up your sale
Why Selling First Works
1. Unlock Equity, Buy Strong
According to CoreLogic, in early 2024, California homeowners gained an average of $64,000 in equity, with Los Angeles metro owners seeing $72,000—leading the nation. In historic neighborhoods like Hancock Park, where inventory is limited and demand remains strong, those gains are often even higher.
That kind of liquidity lets you compete with confidence—whether in a traditional bidding war or on a coveted pocket listing.
2. Avoid Financial Overload
With luxury homes, carrying two mortgages isn’t just stressful—it’s risky:
- $2.5M mortgage at 6.7% (for example) ≈ $16,400/month
- $4M new mortgage at 6.7% ≈ $26,200/month
- Add taxes, insurance, and utilities: over $45,000/month
Even a short 60-day overlap could cost $90K–$100K out of pocket. High interest rates only make that math worse.
3. Compete Like a Cash Buyer
In neighborhoods with Historic Preservation Overlay Zones, like Windsor Square and Larchmont Village, the most desirable homes often never hit the multiple listing service. Instead, they’re sold privately through pocket listings or off-market listings, where sellers favor clean, non-contingent offers.
When you've already sold your home, you compete on their level. You can:
- Present strong offers without sale contingencies
- Close faster
- Act immediately when a pocket listing surfaces
- Win a bidding war without overpaying
A seasoned real estate agent or luxury home specialist can give you early access and guide you through the offer process strategically.
"But Where Will We Live?"
It’s the most common concern, and a valid one. Fortunately, there are proven solutions:
- Rent-back agreements: Many buyers allow sellers to stay in the home for 30-60 days
- Short-term rentals: Plenty of high-end furnished options nearby in Miracle Mile, Mid-Wilshire, and Beverly Grove
- A trusted mortgage broker and designated local expert can help coordinate timing between your sale and next purchase
Market Snapshot: Summer 2025
- Hancock Park: $3.1M median price | Avg. 40 days on market (Redfin)
- Windsor Square: $2.9M median | Avg. 31 days on market (Redfin)
- Larchmont Village: Avg. 27 DOM | Low inventory, strong buyer demand (Redfin)
- Inventory: Up 23% in luxury segments, giving buyers more choice
What This Means:
Buyers have more choice, and sellers who plan ahead hold the advantage. These market conditions make a sell-first strategy especially powerful, particularly when it opens the door to exclusive pocket listings.
Especially Smart for Historic Los Angeles Homes
In Hancock Park, Windsor Square, and surrounding neighborhoods, you’ll find elegant Colonial homes, Spanish Revivals, and other architecturally significant properties.
The right home may only appear once a year, and when it does, it’s often offered as a pocket listing, not shared publicly.
Selling first gives you the freedom to wait for the right opportunity—and the ability to move quickly when it shows up.
When Buying First Might Make Sense
Rare exceptions where buying first could make sense:
- You’re relocating for a job with a fixed start date
- A once-in-a-lifetime home becomes available
- You have liquid assets beyond your home equity
- Your agent uncovers a time-sensitive pocket listing
Even in these cases, explore options like rent-backs or flexible closings before taking on two high-end properties.
Final Thought for Hancock Park Sellers
In 2025, with interest rates elevated and inventory rising across key LA neighborhoods, selling first isn’t just safer—it’s strategic.
Your equity is your edge. Use it well, and you can compete like a cash buyer, avoid unnecessary financial strain, and act quickly when the right home comes along—on market or off.
Want Personalized Market Insights?
If you're thinking about your next move, start with a custom home valuation and tailored market insights from a designated local expert.
Whether you're preparing to sell or waiting for the perfect off-market listing, the right strategy starts with the right knowledge—and the right agent.
You’ll also gain access to exclusive pocket listings, trusted vendors, and easy-to-follow home buying guides that help you move smartly and confidently.