Buying a New Home Before Selling Yours? Here’s What You Need to Know

You’re ready for a new chapter—a bigger place, a better location, or just a fresh start. But there's one problem: you still own your current home. So, can you buy a new home while selling your existing one? The short answer is yes. The real answer is: it depends on your finances, timing, and risk tolerance. Let’s break down what you need to consider and how to make the process smoother.

1. Know Your Financial Position

Before you even browse for new homes, take a hard look at your finances. Most homeowners rely on the equity from their current home to fund the down payment for the next one. If that’s your situation, you’ll need a plan for bridging the gap.

Options to consider:

• Bridge Loan: This is a short-term loan that lets you use the equity in your current home to finance the down payment on your new one. You’ll repay it once your current home sells. It’s helpful—but risky if your home doesn’t sell quickly.

• HELOC (Home Equity Line of Credit): This works similarly but can be arranged before your home is on the market. It’s more flexible and often has lower interest rates than a bridge loan.

• Contingent Offer: You can make an offer on a new home that depends on your current home selling first. This protects you financially but might be less attractive to sellers—especially in competitive markets.

• Renting Out Your Current Home: If you’re open to becoming a landlord, renting your current property could generate enough income to qualify for a new mortgage. But this route comes with long-term responsibilities.

The big takeaway: talk to a lender early. Knowing what you can afford and what options are available gives you the power to act decisively when the right home appears.

2. Understand the Market Timing

Real estate is all about timing—and when you’re both buying and selling, you’re playing a complex game of match-up. The good news is, you’re not alone. Many people are in this exact situation.

If you’re in a seller’s market (homes sell fast and inventory is low), you might feel pressured to grab a new home quickly before prices climb or options vanish. In this case, it often makes sense to buy first, especially if your current home will likely sell fast. You might even arrange a rent-back agreement, where you sell your current home but rent it temporarily from the new owner while you close on your next place.

If you’re in a buyer’s market (lots of homes for sale, but fewer buyers), focus on selling your current home first. Buying won’t be as competitive, so once your home sells, you’ll have more negotiating power on your purchase.

Other timing tactics:

• Extended closings: You can negotiate longer escrows on either end to give yourself more breathing room.

• Back-to-back closings: This means scheduling both transactions to close on the same day. It’s tricky but doable with the right support team.

The market determines your flexibility—so keep your expectations grounded in what’s happening locally.

3. Work With an Experienced Agent

This is not a time to go solo or pick a random agent. You need someone who knows how to handle the details, pace the process, and help you make smart choices under pressure.

Here’s what a great agent will do:

• Prep and price your current home for a fast sale: Timing is everything, and your agent will ensure you’re competitive and attractive to buyers.

• Craft smart, appealing offers: If you're buying first, your agent will help write strong offers—even with contingencies—that don’t scare off sellers.

• Negotiate flexible terms: They’ll help you secure things like rent-backs, closing date coordination, and inspection timeframes that align your two transactions.

• Coordinate both sides: Juggling two deals at once takes skill. A good agent manages both timelines, keeps your documents on track, and helps you avoid last-minute chaos.

An experienced agent is your safety net. With them on your side, you’re not just guessing—you’re making informed moves.

The bottom line?

Yes, you can buy a home while selling yours—but it takes strategy, coordination, and a clear financial plan. Know your numbers. Watch the market. And partner with a professional who can help you juggle both sides of the deal.

Done right, you’ll move from one home to the next with fewer surprises—and fewer headaches.