How can I buy a home before selling my current one?
- Embrace the Contingency: A sales contingency in your purchase offer lets the seller know your new home purchase hinges on selling your existing one.
- Bridge Loan Power: A bridge loan provides temporary financing to cover the gap between buying and selling.
- Unlocking Equity's Potential: If you've built equity in your current home, consider a HELOC or a cash-out refinance.
Why Buying Before Selling Can Be Tricky
Many homeowners in South Jordan and Daybreak want to find their next home before putting their current one on the market. It avoids moving twice and lets you shop without pressure. The challenge is that most buyers need the equity from their current home for a down payment, and carrying two mortgages — even briefly — can be stressful. The good news is that there are several ways to make it work.
More Options to Consider
- Buy-before-you-sell programs: Some lenders and companies offer programs that help you access equity or guarantee a sale of your current home so you can make a stronger, non-contingent offer.
- Rent-back agreements: When you sell, you may be able to negotiate a short period to stay in the home after closing, giving you time to move.
- Carrying both mortgages: If your income and savings allow it, you may qualify to own both homes for a short time.
- Extended closing dates: Coordinating closing dates on both transactions can reduce the overlap.
Steps to Get Started
- Talk with a lender first. Find out what you qualify for and which financing tools are available to you.
- Know your home's value. A comparative market analysis helps you estimate your equity and budget.
- Prepare your current home. Having it ready to list quickly gives you flexibility when you find the right new home.
- Build a timeline with your agent. A clear plan helps you avoid surprises.
Pros and Cons to Weigh
Buying first gives you more control and a single move, but it can cost more in fees or short-term payments. Selling first gives you certainty about your budget but may require temporary housing. There's no one right answer — it depends on your finances and how comfortable you are with risk.
Becks Nielson has helped many South Jordan families make this move smoothly. Call (801) 390-9576 to talk through the best strategy for your situation.