1. Financing Options
You have a few ways to approach buying while selling:
Contingent offer: You can make an offer on a new home that is contingent on selling your current house. This protects you from owning two properties at once. However, sellers may prefer offers without contingencies, especially in competitive markets.
Bridge loan: A short-term loan that allows you to buy a new home before selling your current home. This can help if you find your dream home before it sells but usually comes with higher interest rates and fees.
Cash offer or savings: Using savings or cash reserves to purchase the next home before your current one sells. This reduces timing risk but requires substantial liquidity.
2. Timing Considerations
Market alignment: If your current home is likely to sell quickly, you can coordinate closings to avoid overlap.
Inspection and appraisal scheduling: Factor in contingencies for home inspections, appraisals, and escrow timelines for both properties.
Backup plan: Prepare for delays. Even in a strong market, a home might not sell as fast as expected.
3. Risks to Manage
Owning two mortgages: If your home doesn’t sell quickly, you may need to carry two mortgage payments, property taxes, insurance, and maintenance costs.
Financial strain: Bridge loans or temporary financing can be expensive if sales are delayed.
Market fluctuations: Housing values could shift between listing your home and buying another, potentially impacting equity.
4. Tips for a Smooth Transaction
Price competitively: Listing your current home at a market-friendly price can help it sell faster.
Work with experienced agents: Coordinating two transactions benefits from professional guidance. I can advise on timing, pricing, and negotiation strategies.
Prepare your finances: Ensure you have pre-approval and understand your maximum buying capacity.
Stay flexible: Build some timing wiggle room into offers and closings.
5. Strategic Advantages
Lock in your next home: You can secure the house you want without waiting.
Leverage market conditions: If the buyer’s market favors you, you may find good deals even while selling.
Plan your move: Coordinating sales and purchases allows for smoother transitions with minimal downtime.
Conclusion
Yes, buying a house while your current one is for sale is possible. The key is careful planning, understanding financing options, and having a strategy in case timelines don’t align perfectly.
As Becky Roenspie of Roenspie + Johnson Real Estate Group, I help clients navigate buying and selling at the same time with realistic strategies, market insights, and personalized support to reduce stress and maximize outcomes.