How to Buy a Home Before Selling Yours

by Ernest Van Glahn

Are you ready to upgrade or relocate but worried about timing? Many homeowners find themselves in a tough spot, wondering how to secure their next home without waiting to sell their current one. The good news is—you CAN buy a new home before selling your existing property! Here’s how:

1. Home Equity Loan or HELOC

If you’ve built up equity in your current home, you can tap into it with a Home Equity Loan or a Home Equity Line of Credit (HELOC). These options allow you to use your home’s equity for a down payment on your new home. This is a great solution if you have significant equity and can afford to carry both mortgages temporarily.

2. Bridge Loan

A bridge loan is a short-term loan that “bridges” the financial gap between buying your new home and selling your old one. It provides temporary financing so you can move forward with your purchase without waiting for your current home to sell.

3. Sell with a Leaseback

Want to sell first but need time to find your next home? A leaseback arrangement allows you to sell your current home and then lease it back from the buyer for a set period. This gives you flexibility and financial security while you search for your next dream home.

4. Contingency Offer

A contingency offer means you make an offer on a new home, but the purchase depends on selling your current home first. While this can work in some markets, it might be less attractive to sellers in a competitive market where they prefer non-contingent offers.

5. Guaranteed Offer Programs

Some real estate companies offer programs where they provide a cash offer for your home, allowing you to move quickly. This can be a convenient option if you want to avoid the uncertainty of selling on the open market.

Which Option is Right for You?

The best approach depends on your financial situation, market conditions, and personal timeline. If you’re unsure which strategy works best for you, let’s chat! I can help you navigate your options and create a plan that ensures a smooth transition to your next home. 🏡🔑