Buying a New Home While Selling Your Current One: Your Best Options (Q&A Guide)

Q1: What’s the best approach when I need to sell my home before buying a new one?

There are multiple strategies, each suited to different financial and market situations. Here’s a breakdown of the most common options.

Q2: What is a home sale contingency?

Your offer on a new home depends on selling your current home first.

Pros:

• Less financial pressure
• Avoid paying two mortgages

Cons:

• Not as strong as non‑contingent offers
• Harder in highly competitive markets

Best for: Balanced or slower markets.

Q3: What does it mean to sell first, then buy?

You list and sell your home, then shop for your next property.

Pros:

• Cash on hand
• Strong negotiating power

Cons:

• May require temporary housing

Solutions:

• Rent‑back for 30–60 days
• Short‑term rentals or Airbnb

Q4: What is a bridge loan?

A short‑term loan providing funds for a down payment before your current home sells.

Pros:

• Allows you to buy first
• No rushing to sell

Cons:

• Higher interest rates
• Must qualify financially

Best for: Sellers with strong equity and excellent credit.

Q5: How does a HELOC work in this situation?

You borrow against your home’s equity.

Pros:

• Flexible
• Often lower rates than bridge loans

Cons:

• Payments start immediately
• Temporary dual loans

Q6: Can I buy first if I qualify for two mortgages?

Yes.

Pros:

• Stress‑free timing
• Ability to prep and stage your old home after moving

Cons:

• Not everyone qualifies
• Higher financial risk

Q7: What are home trade‑in programs?

Some companies buy your new home for you, then sell your old one after you move.

Pros:

• Simplifies timing
• Makes your offer stronger

Cons:

• Fees apply
• Not available in all markets

Q8: Which option is best?

It depends on:

• Your equity
• Market conditions
• Budget and financial comfort
• How quickly you need to move

A consultation with a local REALTOR® helps determine the right path.