Can You Buy a New Home Before Selling Your Current One?

See how sale contingencies, bridge loans, and leaseback agreements allow you to buy their next home before selling their current one.

Can you buy a new home before selling your current one without being homeless? It sounds like a magic trick, but it’s actually easier than you think. It can be challenging, but luckily, I know three "magic tricks" that can make the process much smoother. Check them out!

1. Sales contingency. One of the first tricks I recommend is using a sales contingency, which protects you during the home-buying process. It lets the seller of the home you're buying know that you're also still selling your current home. This reduces financial risk if the timing doesn’t match up. With a sales contingency, you won’t be stuck with two homes or face financial strain if your house takes longer to sell.

2. Bridge loan. Another useful trick is a bridge loan, which is a type of financing that allows you to buy your new home before selling your old one. This gives you the flexibility to move into and get settled in the new house without the stress of finding temporary storage or worrying about where you’ll stay. It helps avoid the rush to sell your old home and gives you more time to manage the transition smoothly.

"Contingencies, bridge loans, and leaseback agreements can help you avoid rushing out of your home."

3. Leaseback agreement. The third trick I’d like to suggest is a leaseback agreement. Here’s how it works: With a leaseback agreement, you still get to stay in your home for a few more weeks even after selling it. This gives you time to move into your new place without rushing. Many buyers are open to this, making it a great way to ease the transition.

The great thing about these options is that you don’t have to choose just one. In fact, combining them can provide the perfect solution for your specific needs. You might decide to use a sales contingency for financial protection, a bridge loan for more flexibility, and a leaseback agreement to ensure you’re not rushing out of your home. The key is to figure out which combination works best for you and your situation.

In the end, buying and selling a home doesn’t have to be stressful. With the right strategies, you can make the transition from one home to the next smoothly and confidently. If you’re feeling unsure about how to handle both selling and buying at the same time, let me help. Feel free to call me at 210-338-0799 or send an email to Tom@TomWhiteGroup.com. Let’s talk about your options and figure out the best approach for you!