How to Buy and Sell a Home at the Same Time: A Step-by-Step Guide

Buying a new home while selling your current one is a delicate balancing act. It requires planning, strategy, and sometimes a bit of luck. Whether you’re trying to sell first, buy first, or close both deals on the same day, having a clear plan in place can make the process much smoother.

This guide will walk you through everything you need to know about buying and selling a house at the same time, from understanding the market to exploring financing options.

Step 1: Analyze the Real Estate Market

Before diving into the buying and selling process, it’s essential to understand market conditions in both your current location and the area you’re moving to.

Buyer’s Market vs. Seller’s Market: What’s the Difference?

• Buyer’s Market: There are more homes available than buyers. This makes it easier to find a home to buy but harder to sell your current home quickly.

• Seller’s Market: Demand exceeds supply, so homes sell fast. While this benefits sellers, finding and securing your next home might be more challenging.

Depending on the market conditions, your approach may differ:

Market Type & Strategy:

Buyer’s Market:

Consider making an offer on a new home with a sale contingency, meaning your purchase depends on selling your current home first.

Buyer’s Market:

Request an extended closing on your new home to allow more time for your current home to sell.

Seller’s Market:

Ask buyers for a rent-back agreement, allowing you to stay in your home for a set period after closing while you find a new place.

Seller’s Market:

Consider making an offer with a settlement contingency, meaning your purchase is dependent on closing the sale of your current home.

Step 2: Hire a Knowledgeable Real Estate Agent

Buying and selling a home at the same time can get complicated, so working with an experienced real estate agent is crucial. A great agent can:

✔️ Help you price your current home competitively.

✔️ Advise on the best timing and strategy for buying and selling.

✔️ Navigate contract contingencies and negotiate effectively.

Choosing the Right Agent

Don’t just go with the first agent you meet—interview multiple agents to find someone with strong market knowledge and experience handling simultaneous transactions. If you’re moving within the same city, consider using one agent for both buying and selling to streamline communication.

Step 3: Understand Your Financial Options

Before you start shopping for your next home, take a close look at your finances to determine:

✔️ How much your current home is worth

✔️ How much equity you have

✔️ Whether you can buy before selling

Determining Your Home’s Value & Equity

Your home equity is the difference between your home’s current market value and the remaining balance on your mortgage. A real estate agent or home appraiser can help determine how much your home is worth.

If you need the proceeds from selling your home to buy a new one, you may need to:

• Sell first and find temporary housing

• Use bridge financing to cover costs until your home sells

• Work with your buyer on a rent-back agreement

Step 4: Buying Before Selling—Is It Right for You?

If you’re confident that your home will sell quickly, you may consider buying a new home before selling your old one. Here are some ways to make it work:

1. Make an Offer with a Sale Contingency

A sale contingency means your purchase depends on selling your current home first. While this provides security, it’s less attractive to sellers, especially in a competitive market.

2. Request an Extended Closing

If you think your home will sell fast, you can ask the seller for a longer closing period, giving you time to sell your home before finalizing your purchase.

3. Use Savings or Alternative Financing

If you have enough in savings, you can use those funds for a down payment and then replenish your savings after selling. Other financing options include:

✔️ Home Equity Line of Credit (HELOC) – Borrowing against your home’s equity before selling.

✔️ Bridge Loan – A short-term loan that covers your down payment until your home sale closes.

4. Rent Out Your Current Home

If selling right away isn’t necessary, you could rent out your current home to cover the mortgage while you wait for the best time to sell.

Pros & Cons of Buying Before Selling

✅ Pros

✔️ You won’t have to find temporary housing.

✔️ You avoid moving twice.

✔️ You can wait to sell until you get the best price.

❌ Cons

✖️ You might feel rushed to sell and accept a lower offer.

✖️ You may struggle to qualify for a second mortgage if your equity is tied up in your current home.

✖️ If you rent out your home, being a landlord can be challenging.

Step 5: Selling Before Buying: A More Secure Approach

If you’re risk-averse or need the equity from your current home to buy, selling first is often the safer option.

1. Make an Offer with a Settlement Contingency

This allows you to secure a new home while waiting for your sale to close. This works best in seller’s markets, where you’re likely to get offers quickly.

2. Find a Temporary Rental

Selling first means you’ll need a place to stay before moving into your new home. Options include:

✔️ Short-term rentals (apartments, Airbnbs, or extended-stay hotels).

✔️ Staying with friends or family for a few weeks.

✔️ Storage solutions if your new home isn’t ready yet.

3. Ask for a Rent-Back Agreement

A rent-back agreement allows you to continue living in your home after selling, giving you extra time to find and close on a new property.

Pros & Cons of Selling Before Buying

✅ Pros

✔️ You know exactly how much money you have for your next home.

✔️ You avoid the risk of two mortgages.

✔️ You’re in a stronger position when making an offer.

❌ Cons

✖️ You may need temporary housing and storage.

✖️ You’ll have to move twice, which can be stressful.

Final Thoughts: Planning is Everything

Buying and selling a home at the same time requires careful planning and an understanding of market conditions. By working with an experienced real estate agent, exploring financing options, and being flexible with timing, you can make the transition as smooth as possible.

✔️ If you buy first: Have a plan to cover costs if your home doesn’t sell immediately.

✔️ If you sell first: Line up temporary housing so you aren’t rushed into buying a new home.

With the right strategy, you can successfully navigate both transactions and move into your new home without unnecessary stress!

Need Help Buying or Selling?

Thinking about making a move? Connect with a local real estate expert to guide you through the process!