Buying and Selling a Home at the Same Time? Here’s How to Make the Move Work

Do you want to buy another home but need the equity from your current home to make it happen?

For many homeowners, the biggest challenge isn't deciding whether to move. It's figuring out how to sell one home and buy another without getting stuck in between.

1. Option One: Sell Your Current Home First

Selling before buying can provide the clearest financial picture.

Once your home closes, you know exactly how much money you have available for the next purchase.

2. Option Two: Buy Your Next Home First

Buying first can make the move more convenient, but you may temporarily own two homes and have two sets of housing expenses.

3. A Bridge Loan May Help You Buy Before You Sell

A bridge loan is designed to help cover the gap between purchasing your next home and selling your existing one.

Depending on the lender and your financial situation, bridge-loan funds may be used toward the purchase of your next principal residence before your current home closes.

4. A HELOC May Let You Access Some of Your Equity

A Home Equity Line of Credit allows qualified homeowners to borrow against available equity in their current home.

5. A Home Equity Loan Is Another Possibility

Unlike a HELOC, which is a line of credit, a home equity loan generally provides a lump sum.

6. Your Existing Equity May Be the Key

Your approximate equity is current home value minus the amount you owe.

Actual proceeds are reduced by mortgage payoff, selling expenses, liens, concessions, and other transaction costs.

7. You May Be Able to Coordinate Both Closings

Sometimes the most straightforward solution is careful timing.

8. A Contingent Offer May Be an Option

Another possibility is making the purchase of your next home contingent on the sale of your current property.

9. Know What You Can Carry Financially

Buying before selling can create temporary financial pressure.

10. The Best Strategy Depends on Your Situation

There isn't one correct order for everyone.

Start With Your Equity and Your Options

Start by determining what your current home may be worth, approximately how much equity you have, what your estimated net proceeds could be, how much you may need for your next purchase, and which financing options may be available to you.

I can help you estimate the value of your current home, explore potential replacement properties, and work with your lender and settlement professionals to help coordinate both sides of your move, just send me a message when you are ready.