Buying and Selling a Home
at the Same Time
If you’re ready to buy a new home and sell your current home, you have a few options. If financing is not a barrier, you can purchase a new home, move out of your current home and then put it on the market. However, it’s common to need to sell your current home before buying a new home in order to utilize the equity for your down payment.
Option 1: Get under contract with your new home then list your old home
Start the search and in the meantime, get your current house ready to list. We’ll have everything ready to go so that as soon as you’re under contract with your new home, we can list your current home.
PRO TIP: Depending on the market and the specific home, we may be able to craft an offer that includes a slightly longer closing period such as 45 days.
Option 2: List your home first
Another option is to list your home first then as soon as you’re under contract, put in an offer on a new home. Timing this can be tricky in a low inventory market like ours.
PRO TIP: You can create a longer runway by either negotiating a longer closing period or a leaseback period. Depending on the buyer’s needs, you may be able to close on your current home (and get the equity out) then rent it back for a month or two while you find your new home.
Option 3: Use your home’s value to help
If you’ve owned your home for a while, it has probably gone up in value. You can use that value to help you buy your next home — even before your current home sells. Here are three common ways to do this:
▸ Bridge Loan
Think of this like a short-term helping hand. A lender gives you a loan to cover your new home’s down payment before your old home sells. Once your old home sells, you use that money to pay back the bridge loan. It’s temporary — usually lasting just a few months.
▸ HELOC (Home Equity Line of Credit)
A HELOC works like a credit card that’s backed by your home. Your lender gives you a credit line based on how much your home is worth. You can borrow what you need for your new home’s down payment and pay it back when your current home sells. You only pay interest on what you use.
▸ Home Equity Loan
This is a one-time lump sum that you borrow against your home’s value. Unlike a HELOC, you get all the money at once and pay it back in fixed monthly payments. This can be a good choice if you know exactly how much you need for your next home.
PRO TIP: Each of these options has different costs, timelines, and requirements. The right choice depends on your situation. I can connect you with trusted lenders who will walk you through the details and help you find the best fit.
Thinking about buying and selling?
I look forward to helping you navigate this exciting new chapter.
Talk soon,
Leah Guerra