How To Buy A House While Selling Your Own.

1. A Bridge Loan: This type of loan acts as a temporary financing solution that allows you to borrow against your current home’s equity to fund the down payment on your new home. When you would use it: Don’t want to move twice? Bridge loans give you the flexibility to buy a new home without selling your current home first. However, you must qualify to hold your existing mortgage, the new mortgage, and the bridge loan.

   
   

2. A leaseback: A leaseback allows you to sell your home first and then rent it back temporarily from the new owner. This option buys you time to find and close on your next home. Basically, you become the renter of your own home once you settle (for a period of 30-60 days), providing you with the funds for the downpayment on your next home. When you would use it: Don’t want to move twice but have to sell to buy? A leaseback gives you time to find and close on your new home after selling your current one — without having to move twice!

   
   

3. Home equity loan or line of credit: A home equity loan or line of credit (HELOC) lets you access the equity in your current home to help with the down payment or other costs associated with buying a new home. When you would use it: You can use this money as your downpayment on the new home and pay it off once your current house sells. This is another option where you must qualify to hold your existing mortgage, the new mortgage, and the home equity loan.

   
   

4. Purchase with a home sale contingency: While this option alleviates most of the stress of buying and selling simultaneously, sellers don’t typically prefer a home sale contingency, as it puts their home sale at risk. This is because if you end up not selling your current home or backing out of the contract, they are back to square one. Although difficult in our current market, this option is not impossible! Look for homes that have been sitting for more than two weeks.

   
   

5. Hire a great realtor: Navigating the complexities of buying and selling at the same time requires the expertise of a seasoned real estate agent. A great agent will help you coordinate the sale of your current home with the purchase of your new one, ensuring that timelines align and negotiations go smoothly. They can also provide invaluable advice on pricing your home competitively, staging it to attract buyers, and crafting offers that protect your interests.