Learn three key strategies to buy your next home before selling your current one—without the stress of double mortgages.
In an ideal world, the sale of your old house would line up perfectly before the purchase of your new one. But in reality, real estate transactions don’t always go that smoothly. You might find your dream home before your current one sells—and your money to purchase is wrapped up in your current house. So, can you buy a new home before selling your current one? The short answer is yes, but it requires careful planning. Let’s explore your options.
1. Sale contingencies and delayed closings. One option is adding a sale contingency to your contract, meaning your new home purchase depends on finding a buyer for your current one first. This protects you from being stuck with two mortgages, but in a competitive market, sellers usually prefer non-contingent offers. Another approach is selling your house first and negotiating a delayed closing, giving you extra time to secure your new home before you have to move out. Your broker can help structure this to your advantage.
2. Bridge loans and rent-back agreements. If you need financial flexibility, a bridge loan can cover the gap between buying and selling, allowing you to make a strong offer, non-contingent on selling another property. Bridge loans usually come with higher interest rates, but it’s a short-term payment: you’ll only keep it until your first house sells. Another strategy is a rent-back agreement, where you sell your current house but stay in it temporarily, paying rent to the new owner while you finalize your next move.
“Buying before selling works with planning, smart financing, and the right strategy.”
3. Explore alternative solutions. If those options don’t work, there are other creative ways to make the transition smoother. Companies like Flyhomes, Orchard, and Knock offer programs that help you buy before you sell. You could also consider renting out your current house for passive income or selling to an iBuyer for a fast, cash transaction. However, keep in mind that convenience often comes at a lower sale price.
While buying before selling can be convenient, it’s not always the best financial move. Carrying two mortgages at once or relying on a quick home sale can carry risks. That’s why working with an experienced real estate broker is crucial—they help you navigate the market and assess the priority in your situation.
If you’re considering buying a new home before selling your current one, let’s talk. We’ll walk you through your options and help you make the best decision based on your unique situation. Schedule a call today, and let’s create a strategy that works for you!
