Barry Cunningham REALTOR® with The Boulevard Company (843) 530-0755

Downsizing in Charleston: should I sell first or buy first?

If you need the equity to buy, sell first or line up a short rent-back; if you can carry both for a few months, buying first takes the pressure off. Either way, budget for the property tax reset: your next home is taxed on its new value, so a long-time owner's bill can rise even on a smaller house.

By Barry Cunningham, REALTOR®. Updated November 8, 2026.

Sell first, buy first, or both at once

Selling first means you know your number and can make a clean offer, but you need somewhere to go. A rent-back, where you stay in the house for a few weeks after closing, is common and negotiable. Buying first is easier on you but means carrying two homes or using a bridge loan or a home equity line. A contingent offer, where your purchase depends on your sale, works in slower markets and with some builders, but it's weaker in competition.

New construction and 55+ homes change the timing. A to-be-built home can take months, which gives you time to sell; a quick move-in home can close in weeks. Ask the builder about their timeline and whether they'll accept a home-sale contingency.

Your next tax bill resets

South Carolina caps increases in a home's taxable value at 15% per five-year reassessment, but the cap resets when a home sells. If you've owned your current home for many years, you're probably taxed on a value well below the market. Your next home starts over at its purchase price, so the bill can go up even if you buy for less than you sell.

Apply for the 4% legal residence rate on the new home right away, and if you're 65 or older, re-apply for the homestead exemption there too. My can I afford to move worksheet runs the new payment and taxes.

Taxes on the sale

Federal law lets most owners exclude up to $250,000 of gain on a primary home ($500,000 for a married couple filing jointly) if they've owned and lived in it for at least two of the last five years. Above that, the gain is taxable. Talk with your tax advisor before you list, especially if you've owned the home for decades.

At closing, South Carolina sellers usually pay the deed recording fee of $1.85 per $500 of the price. My seller net sheet estimates what you'll walk away with.

Where people downsize to

Some stay close and move to a smaller home or a townhome in the same area; others move inland for single-level new construction or a 55+ community, most of which are in the Summerville area. Compare them on my 55+ guide and new construction directory.

Common questions

Will my property taxes go down if I downsize?

Not necessarily. Your current home may be taxed on a capped value well below the market. Your next home is taxed on its new value, so the bill can rise even on a smaller, cheaper house.

How much capital gain is tax-free when I sell my home?

Up to $250,000 for a single filer and $500,000 for a married couple filing jointly, if you owned and lived in the home at least two of the last five years. Confirm with your tax advisor.

Can I stay in my house after I sell it?

Often, yes, with a rent-back written into the contract. Short ones of a few weeks are common; the terms are negotiable.

Do builders accept offers contingent on selling my home?

Some do, especially on homes not yet built. Ask each builder; terms vary.

Keep reading

Sources

Published November 8, 2026, last checked November 8, 2026. Fees, prices and road projects change, so confirm the current numbers for any specific home before you buy. More answers

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