Selling one home and buying the next, with a clear plan

Sell first, buy first, or line them up

There are three common paths. Selling first gives you a known budget but may mean a temporary move. Buying first lets you move once but may mean carrying two homes for a while. Lining up both closings takes careful contract dates and some flexibility from both sides.

A home sale contingency makes your purchase depend on your current home selling. Sellers weigh offers with and without one differently, so how it's written matters. Your attorney can review the wording during attorney review. Some buyers ask lenders about bridge financing or other ways to use equity before the sale closes. Options, costs and rules vary by lender, so ask early and get the terms in writing.

New Jersey contract basics on both sides

When a real estate licensee prepares the sales contract, New Jersey requires an attorney review clause. Buyer and seller each have three business days from delivery of the fully signed contract to consult an attorney, who can propose changes or cancel. This applies to the home you sell and the home you buy.

As a seller, New Jersey law also requires your brokerage to get a signed property condition disclosure statement from you. As a buyer, you'll sign a written brokerage services agreement with your agent's firm. Both are required under P.L. 2024, c.32, effective August 1, 2024.

Seller costs: the Realty Transfer Fee

New Jersey imposes a Realty Transfer Fee on the seller when the deed is recorded. On sales over $1 million, a supplemental Graduated Percent Fee also applies, and the Division of Taxation says the seller is responsible for both. That change took effect in 2025; before then, the buyer paid the over-$1 million fee.

Reduced rates exist for some sellers, such as qualifying senior citizens, blind or disabled persons, and low and moderate income housing. Your attorney prepares the affidavit filed with the deed, and the Division of Taxation publishes the current fee schedules.

Capital gains on your primary home

Under Section 121 of the Internal Revenue Code, you may be able to exclude up to $250,000 of gain from selling your main home, or up to $500,000 if married filing jointly. Generally you must have owned and lived in the home for at least two of the five years before the sale, and not used the exclusion on another home in the prior two years.

A partial exclusion may be available in some cases, such as a work-related move. Tax situations differ, so talk with a CPA or tax professional before you list. Cathy can connect you with CPAs from her network.

How Cathy works with move-up buyers

Cathy Walters has been a licensed New Jersey real estate professional since 2007 and has lived in South Jersey since 1984. On the selling side, she handles listing preparation, pricing strategy, marketing and seller representation. Her eye for design helps you decide what to update, what to leave, and how to present the home.

On the buying side, she represents you as a buyer and helps you see the potential in your next property. As a Certified Real Estate Negotiator (2024), she pays close attention to the terms that tie your two transactions together, like contingencies and dates. Her network includes real estate attorneys, contractors, CPAs, inspectors, appraisers and mortgage professionals. If you'd like a referral, Cathy often works with Bradley Brondt, Branch Manager (NMLS 242550), The Brondt Cook Group at Acre Mortgage and Financial, Inc., in Cherry Hill. You're free to choose your own lender.

Move-up checklist: selling and buying in New Jersey

• Get a pricing review of your current home and a list of prep and repair priorities.
• Talk with a lender about your buying budget, with and without your sale closing first.
• Ask your CPA how the Section 121 exclusion applies to your sale.
• Choose your strategy: sell first, buy first, or coordinate both closings.
• Line up a real estate attorney for both contracts and attorney review.
• Complete your property condition disclosure statement carefully.
• Build move-out and move-in dates into both contracts, with backup plans.