Sell First or Buy First When You're Moving From Simi Valley to Another State

Quick answer: When you're leaving Simi Valley for another state, selling first usually gives you the clearest picture: you know what you walk away with, you carry one house payment, and you shop with real money in hand. Buying first lets you move once, but under Fannie Mae's rules the lender counts both house payments when you qualify, unless your Simi Valley sale is already under contract with the buyer's financing contingency cleared. A third path, timing both closings close together, takes the most planning but can give you the best of both.

We're Steve Hise and Tricia Garcia, Simi Valley agents. Here's how each option works when your next home is in another state.

1. Why this question is harder when you're moving out of state

We wrote about buying first vs. selling first for a move within Simi Valley. An out-of-state move adds a few wrinkles:

• Distance. You may only get one or two scouting trips, so the search window is shorter.
• Two markets. Contract forms, inspection periods and how closing works can differ by state. Your agent there should walk you through theirs.
• Two tax systems. California can still tax the gain on your Simi Valley home after you leave, and your new state has its own rules.
• Logistics. Movers and storage need dates, and those depend on when you close.

So get the plan in place before the sign goes in the yard.

2. Option 1: Sell your Simi Valley home first

Why people choose it:

• You know your exact net proceeds before you make an offer in the new state.
• You carry one house payment, not two.
• Your offer out of state isn't tied to selling a California home.

The trade-off: you need somewhere to land between closings: a short-term rental near your new city, family, or a rent-back, where your buyer agrees to let you stay in the Simi Valley home for a set period after closing. A rent-back is written into the contract, so ask for it up front.

Selling first is often the simplest fit when you're not sure where you'll buy yet.

3. Option 2: Buy in your new state first

Why people choose it: you move once, shop without a deadline, and can list the Simi Valley house empty.

What the lender will look at: Fannie Mae's Selling Guide (topic B3-6-06, updated September 2, 2026) says that if your current home is pending sale but won't close before the new loan, the lender must use both your current payment and the new payment to qualify you. Fannie Mae won't require the current payment to be counted if the lender has the executed sales contract for your current home and confirmation that any financing contingencies have been cleared. In plain terms: until your Simi Valley buyer is firmly in escrow, plan on qualifying with both payments.

Ways buyers bridge the gap:

• Cash or savings for the down payment, then pay down later.
• A home equity line of credit on the Simi Valley house, opened before you list. Ask the lender about timing, including whether it will open a line on a home that's already listed for sale.
• A bridge loan, a short-term loan against the home you're selling. Terms vary a lot by lender, so compare in writing.
• A contingent offer in the new state, where your purchase depends on your sale. Whether sellers there will accept one depends on their market.

Before you commit, ask the lender for the monthly cost of both homes and how long you could carry it.

4. Option 3: Time both closings close together

This is the path many out-of-state movers want: sell in Simi Valley and buy in the new state within days of each other. It usually looks like this:

1. Get pre-approved in the new state and shop on a scouting trip.
2. List the Simi Valley home with a closing date that lines up with your target purchase.
3. Once your buyer has removed contingencies, make or firm up your offer out of state.
4. Your escrow officer sends the sale proceeds to the closing agent in the new state, and your lender there funds the new loan.

It takes close coordination between two agents, two closing companies and your lender, plus a backup plan (a rent-back or short-term rental) in case one side slips. We keep the Simi Valley side on schedule and stay in touch with your team in the new state.

5. Option 4: Keep the Simi Valley home as a rental

Some sellers rent out the Simi Valley house instead. Look at three things first:

• The home-sale exclusion has a clock. IRS Publication 523 includes an example of a homeowner who moved to another state, rented the home out, and later sold it. Because they had still owned and lived in it for at least two of the five years before the sale, they could exclude gain up to $250,000, but not the part of the gain equal to the depreciation taken while it was a rental. Wait too long and you can lose the exclusion.
• California keeps a hand in. The Franchise Tax Board lists rent from California real property and the sale of California real property as California-source income for nonresidents. We explain how that works in how California taxes your home sale after you move out of state.
• Escrow withholding changes. The FTB's 2026 Form 593 instructions say the principal-residence exemption from withholding doesn't apply if the home's last use was as a rental. See our Form 593 guide.

Talk with a CPA about your dates first.

6. Five questions that usually decide it

1. Do you know where you're buying? If not, selling first and renting there gives you time to learn the area.
2. Can you qualify with both payments? If your lender says no, buying first is off the table unless your sale is already firmly in escrow.
3. How much cushion do you want? Two homes means two sets of taxes, insurance and upkeep.
4. What's your walk-away number? Start here: What's My Simi Valley Home Worth?
5. What does your CPA say about the sale date? Selling before or after you move can change which California return you file.

Headed to Nevada or Arizona? See moving from Simi Valley to Las Vegas or to Phoenix. For the bigger picture, read our guide to leaving California and selling your Simi Valley home.

Frequently asked questions

Should I sell my California house before buying in another state?
It depends on your finances and how sure you are about where you're buying. Selling first gives you known proceeds and one payment; buying first lets you move once but usually means qualifying with both payments.

Will my lender count my Simi Valley mortgage when I buy out of state?
Under Fannie Mae's Selling Guide, if your current home won't close before the new loan, the lender must count both payments, unless it has your executed sales contract and confirmation that the buyer's financing contingencies are cleared. Check with your own lender.

Can I stay in my Simi Valley home after it sells?
Sometimes. A rent-back lets you stay for a set period after closing if your buyer agrees. It's negotiated in the purchase contract, so ask for it when you accept an offer.

Can I still get the home-sale tax exclusion if I rent the house out after I move?
Possibly. IRS Publication 523 shows a seller who moved out of state, rented the home and still qualified because they had owned and lived in it at least two of the five years before the sale. Depreciation from the rental years isn't excluded. Ask a CPA.

Selling in Simi Valley and moving out of state?

We have about 20 years of combined experience and have helped hundreds of families sell and move. We'll help you pick the order that fits your numbers and line up your closing with your purchase. We plan both moves together so you're not stuck in between. Start here to schedule a call, or call or text 805-424-6226.

Sources

• Fannie Mae Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned (09/02/2026; viewed October 31, 2026).
• IRS Publication 523, Selling Your Home (viewed October 31, 2026).
• Franchise Tax Board, Part-year resident and nonresident (viewed October 31, 2026).
• FTB, 2026 Instructions for Form 593 (viewed October 31, 2026).

Steve Hise and Tricia Garcia, Real Estate Toolbox at eXp Realty
Steve Hise CA DRE #01702055 | Tricia Garcia CA DRE #02032007

This article is general information, not legal, tax or lending advice. Loan rules vary by lender and loan type, and tax rules depend on your dates and your new state. Talk with your lender and a CPA before you choose your sale and purchase dates.