
How to Buy a House Before Selling Yours: 7 Strategies That Work
Buying and selling a house at the same time can be a tricky balance to strike. Many homeowners rely on the sale proceeds from one property to make a down payment on another. But if the timing doesn’t work or your home won’t sell, you could end up with extra housing expenses.
If you’re wondering how to buy a house before selling yours, there are ways to make it work that don’t involve getting lucky with your timing. But whether you choose a buy-before-you-sell program or a home sale contingency, it’s crucial to know the trade-offs of each option.
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Challenges of buying and selling a house at the same time
Buying and selling a house at the same time is a common situation. In a perfect world, you can finalize your home sale and close on a purchase within a matter of days; but in reality, synchronizing your closings isn’t easy.
“If the sale of their home is postponed, they risk losing the new house unless we have negotiated some flexibility,” said Alexei Morgado, a Florida realtor and founder of Lexawise. “On the other hand, if they close on the new house before selling the existing home, they risk being left with double mortgage payments, something most cannot afford.”
You’ll likely have to navigate at least one of the following challenges.
You won’t have any equity available
You can’t unlock your home equity until the property sells, meaning you could miss out on your dream home if you don’t have enough cash for a down payment. It’s also difficult to make a good offer without knowing what the net proceeds from your home sale will be.
Your home equity will be a fixed amount (how much of your mortgage you’ve paid off), but you could net more depending on the sale price. A home sale calculator can help you estimate your proceeds.
You’ll face double housing payments
Buying and selling at the same time means you could be responsible for two housing payments: the mortgage on your current home and the cost of your new living arrangements. This could be a second mortgage if you can buy a new home, or it could be rent for temporary housing.
“You’re in a situation where you’re juggling one mortgage while qualifying for another one — managing two pairs of expenses (mortgage, insurance, utilities, maintenance) until the old house sells,” said Karen Watts, founder of DomiSource, which helps homeowners navigate the first 90 days post-close. “And many underestimate how tight those weeks or months can truly be.”
You’ll have to move twice
If you sell your current home before you buy a new one, you may have to move twice. Depending on the size of your temporary housing, you might also need to rent a storage unit. The average cost[1] for a storage unit is $180 per month, although it varies by size and location.
People tend to underestimate the cost of selling a house and often overlook moving expenses[2]. Hiring movers can cost between several hundred to thousands of dollars, depending on distance, and could top $10,000 if you’re moving across the country.
It may be harder to secure financing
It may be harder to secure a mortgage for your new home before selling your current one. Your lender will consider the proceeds from your sale when determining how much financing you qualify for.
This is especially true if your debt-to-income (DTI) ratio[3] is high. Lenders use this ratio to see if your income is enough to make monthly payments on debt, such as credit cards or cars. Generally, your DTI can’t exceed 36% of your gross monthly income.
Your home’s value could drop
The real estate market can shift quickly, lowering the value of your home and leaving you with less money from the sale than anticipated. This can put sellers in a real bind, especially if they’re counting on the proceeds to help pay for their new house.
Setting an accurate listing price based on the home’s fair market value is critical, and a seller’s net sheet can help you estimate your proceeds. However, you need to stay flexible in case the buyer’s appraisal comes back lower than expected or interest rates soar, changing what buyers can afford.
Benefits of buying a new house before selling yours
The good news is that there are options for buying a new house before selling your current one that can help you avoid some of these challenges. Buy-before-you-sell programs, iBuyers, and cash-buyer companies are all excellent alternatives if you need to sell your house fast.
There are also some creative financing options and seller contingencies that allow you to buy first and sell later — without making an additional mortgage or rent payment.
“It’s all about what fits your situation best and keeps you sane in the process,” said Casey Gaddy, a realtor with The Gaddy Group in Philadelphia.
You’ll keep moving costs down
If you can buy a house before selling yours, you’ll cut your moving costs in half because you’ll only have to move once. This will also eliminate monthly expenses for renting a storage unit.
Even better? You don’t need a temporary place to stay.
You can move when you’re ready
Selling a home can take months. As of May 2025, homes were spending a median of 58 days[4] on the market. If you wait to sell your house first, you may miss out on your dream home.
Of course, this will mean making two mortgage payments unless you use a buy-before-you-sell service, so be sure you can afford two homes — at least for a few months.
You can skip the hassle of showings and open houses
One of the most stressful parts of selling your home is keeping it showing-ready while you live there. Buying before you sell solves this — your house stays clean, tidy, and ready for visitors.
It also makes your house more accessible to potential buyers. If you’ve already moved out, your listing agent won’t have to work around your schedule to arrange showings.
Buy before you sell programs
Pros of buy-before-you-sell programs
- Some loans will cover mortgage payments while your current home sells.
- Most programs will buy your house for cash if it doesn’t sell.
- You’ll get 3–6 months to sell your current home.
- The loan enables you to make a non-contingent cash offer on a new house.
- You can use the advanced equity to make important repairs before selling.
- You don’t have to live in your current home while repairs or showings are underway.
Buy-before-you-sell program downsides
- Program fees can add several thousand dollars to your selling costs.
- While some programs are nationwide, others are only in certain states or large metro areas.
- You may have to pay rent or daily carrying costs on your new home until the old one sells.
- Some programs require you to use their mortgage lender.
- You may also have to use the program’s real estate agent, limiting your ability to negotiate realtor fees.
- If your home doesn’t sell quickly, it could delay the cash offer, making you responsible for ongoing mortgage and utility costs.
A buy-before-you-sell program lets you purchase and move into a new home before selling your current one. This service gives you a short-term bridge loan based on your current equity. You can use this loan to make an offer on a new home and then pay it back once your house sells.
“These programs are designed to take the stress out of timing,” Gaddy said. “You get to shop with confidence, move in peace, and then sell your old home — often with support from their team to prep and market it.”
Buy-before-you-sell programs can be helpful in competitive or fast-moving markets. The bridge loan is essentially a cash offer you can put toward a new home, which can be attractive to sellers. There’s no need to find temporary housing, and some loans will cover ongoing mortgage payments while your house is listed.
However, these programs can come with high fees and interest rates. And while these services will buy your house if it doesn’t sell, you won’t get the full market value. If you’re not in a hurry to move, you may be better off working with a traditional real estate agent.
“One client paid $28,000 in total program fees versus maybe $8,000 in temporary housing and storage costs doing it traditionally,” said Wesley Kang, a Los Angeles realtor and founder of 1099Cafe.
Other options to buy a house before selling yours
Buy-before-you-sell programs aren’t the only way to buy a house before selling yours. There are several options to choose from, each with the potential to help you avoid the challenges of the typical buying and selling process. But there are pros and cons to each option, too.
Write a home sale contingency into your offer
Pros
- Buyers can avoid double mortgages
- Buyers only have to move once
- Sellers can find a buyer in a slow market
Cons
- It can make your offer less appealing to sellers
With a home sale contingency, you agree to buy the new house only if your current one sells by a specific date. You can also do this as a seller, agreeing to sell your home only if you can buy a new one by a set date.
A home sale contingency can be good in a slower real estate market or if mortgage rates are high. Sellers may also accept them if their house isn’t getting much interest from buyers.
For buyers, a contingency reduces their risk of paying two mortgages and helps them avoid moving twice. However, sellers consider a contingency an “if,” and such an offer is less appealing in a competitive market.
Get a bridge loan
Pros
- No sale contingency needed
- Flexible repayment options
- Can make a 20% down payment to avoid private mortgage insurance (PMI)
Cons
- High interest rate of 6–12%
- Closing costs of 1–3%
- Double mortgage payments
- Need 20% home equity to qualify
A bridge loan is a flexible, short-term loan that lets you buy a new home before selling your current one. You can also use it to pay off your existing mortgage or make necessary repairs before listing your house for sale. Most buy-before-you-sell services offer a bridge loan, but you can also get one through a traditional lender.
Bridge loans[5] enable buyers to avoid a sale contingency, but they tend to have higher interest rates (6–12%). You’ll also have to pay closing costs of up to 3% of the loan amount and manage two mortgage payments.
Not everyone will qualify for a bridge loan, either. Most lenders require borrowers to have 20% equity in their home.
Make a low downpayment and recast your mortgage
Pros
- Make an affordable down payment
- Use the sale proceeds to lower monthly mortgage payments
- Easier than refinancing and won’t reset your repayment term
Cons
- Putting less than 20% down adds PMI to monthly expenses
- Lenders charge a service fee
- Brief waiting period before recasting
In this case, you would make a lower down payment (as much as you can afford) on your new home. Then, once you sell your current house, you can use the proceeds to make a large lump-sum payment toward your new loan’s principal balance. Your lender would then recalculate your mortgage, giving you a new — and lower — monthly payment.
Recasting your mortgage won’t change your interest rate or repayment term, but you’ll pay less each month. You’ll have to pay a service fee (likely a few hundred dollars), and some lenders may require you to wait a few months before you can recast the loan (making the original payment in the meantime).
Keep in mind, though, that if you put less than 20% down on your home, you may have to pay private mortgage insurance (PMI)[6] every month — typically 0.46–1.5% of the loan amount. However, 20% is recommended, not required. Most loans require a minimum down payment of 0–10% of the amount you’re borrowing.
Use your savings or investments
Pros
- No credit check or loan application
- Flexible repayment terms
- Loan interest goes back into your retirement account
Cons
- Could impact retirement goals
- Failure to repay draws income taxes and a penalty
- Selling investments may incur capital gains tax
Some buyers may borrow from their retirement account to purchase a new home. Depending on the plan, you may be able to borrow up to half of your balance or no more than $50,000 — whichever is lower.
There’s no credit check or loan application, making this a good option if you need money quickly or have less-than-perfect credit. Repayment terms are typically flexible, and the loan interest you pay goes back into your retirement account.
On the downside, this can set back your retirement goals — especially if you can’t repay the loan promptly. If you fail to repay the loan or leave your job first, the borrowed amount may be considered an early distribution. You may then have to pay income taxes on the amount, plus a 10% early withdrawal penalty.
You could also sell investments to pay for your new home, such as stocks, bonds, mutual funds, or real estate, as well as property like jewelry. However, you may incur a capital gains tax[7].
Ask for a sale lease-back agreement
Pros
- Makes a buyer’s offer more competitive
- Helps the buyer avoid a double mortgage if they still need to sell
- Sellers can avoid finding temporary housing
Cons
- The buyer becomes a landlord
- Most lenders require buyers to occupy their homes within 60 days of closing
- Rental income must be reported to the IRS
In a sale lease-back agreement (or rent-back agreement), the buyer purchases a home but lets the seller live in it as a tenant. This could be a good option if both the buyer and seller need more time to buy or sell another property.
As the buyer, you can purchase the home you want but charge the seller rent until they can buy their next home and move out. This agreement gives you more time to sell your home and relieves you of a double mortgage.
However, it would take some pretty special circumstances for this arrangement to work for both the buyer and the seller. Most buyers prefer to move on into their new home, rather than remaining in one they’re also trying to sell. Buyers must also report the rental income as “other income” on their taxes.
Still, this situation tends to favor the seller. So, if a buyer is willing to offer one, it can make their bid more competitive.
Alternative to consider: Get a cash offer
Cash home buyers and iBuyer companies can give you a quick cash offer and close in 1–2 weeks. They’re similar to a buy-before-you-sell program and can be a good option if you’re selling a home as-is.
This isn’t a loan — it’s an offer to buy your house outright. Simply accept the offer, close the deal, and get paid. There’s no need to move twice, and no tricky timing to work out.
Just be aware that you’ll likely receive only about 70% of your home’s market value. An iBuyer like Opendoor pays closer to the full value at 94%, but it has strict purchase criteria and only operates in about 50 markets. If you’re selling a house that needs repairs, a cash buyer or a traditional real estate transaction is often a better alternative.
A free offers marketplace like Clever Offers allows you to explore multiple options to find your best deal. This includes cash offers from iBuyers and “sell then list” providers that can possibly get you more money. Requesting offers is free, and there’s no obligation to accept. Simply enter a few home facts to get started.
What’s the best option to buy before you sell?
The best way to buy a new house before selling yours will depend on your specific situation. If your budget is tight, a buy-before-you-sell program gives you an advance on the equity in your home so you can put money down on a new home, pay for repairs, and cover your current mortgage payment. This way, you’re able to move out while your old house sells.
If you want this option without the added fees, you could seek a bridge loan from your lender. Recasting your mortgage is also a good alternative if you can pull together the cash for a down payment.
“Compare programs based on total costs, including fees and interest, rather than just convenience,” Kang said. “Some programs cost $30,000 more than traditional approaches for minimal benefit.”
Whatever option you choose, you’ll want to hire an experienced real estate agent to negotiate the home sale and purchase. A realtor will conduct a comparative market analysis (CMA) to help you set a realistic list price. They’ll also be pivotal in working with a buyer’s agent to schedule showings and arrange the closing.
“Start the conversation early,” Gaddy said. “The more time you give yourself, the more options you’ll have. And lean on your agent. We’re here to provide you with all the tools and resources so you can make an informed decision.”
⚡ Get the real estate expertise you need at a rate you’ll love. Clever partners with more than 19,000 agents nationwide to find the right fit for your most important real estate moves. Home sellers save an average of $7,000 through our pre-negotiated listing fees. See agents near you.
FAQs
Can I buy a house before selling mine?
Yes, but buying a house before selling yours can be a delicate balancing act. If it takes a long time for your current home to sell, you could end up with two mortgage payments. Options like buy-before-you-sell programs, bridge loans, and a mortgage recast can make it easier and more feasible, especially on a tight budget.
What is a buy before you sell program?
A buy-before-you-sell program allows you to buy your next house before selling your current one. You receive an advance on your home’s equity to purchase a new property and then sell your old home after you move. You’ll then use the proceeds from your home sale to pay back the loan.
What is a home sale contingency and should I use one?
In a home sale contingency, you agree to buy the property only if you sell your current home by a set date. This can help you avoid paying double mortgages or making multiple moves, but it can also make your offer less appealing to sellers in a competitive market.
Increasing your offer price might help if you can afford it. Also, consider whether you can sell your home within the agreed-upon timeframe.
What happens if I can’t sell my current house after buying a new one?
If you use a buy-before-you-sell program, most will pay cash for your house. A home sale contingency lets you back out of the deal if you can’t sell the house within the set timeframe. Otherwise, you may want to consider a cash buyer or an iBuyer, although you likely won’t get the full market value.
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