Seamless Home Transition: Buy Before Selling

By Burt Tsuei

A Realtor with 20+ Years of proven track record of high quality service in the San Mateo County/Bay Area. A lifelong Bay Area resident, Burt works with buyers and sellers from Pacifica to South San Francisco to Redwood City and beyond. Burt is passionate about selling real estate in the mid-peninsula, and inspired by his clients’ goals and dreams. No matter what your unique needs are, whether you’re transitioning from city living or stepping up to a larger home, his mission comes straight from the heart: to protect your best interests and make your experience seamless.

The prospect of buying a new home before selling your existing one might seem like navigating a tightrope, but with the right approach, it’s entirely manageable. Today, let’s demystify this process and explore your options, ensuring you can proceed with confidence in your next big move.

When it comes to selling your home while purchasing another, it often requires some out-of-the-box thinking. The crux of the matter is that most buyers desire a clean closing, free from the seller’s home sale contingencies. These contingencies can narrow your options or weaken your offer’s competitiveness. Here’s how you can navigate these waters:

1. Bridge loan. This temporary loan can cover the down payment and closing costs of your new home until your current one sells. While bridge loans offer a lifeline, they come with higher interest rates, underscoring the need for meticulous planning and financial stability.

2. Home equity loan or line of credit. Tapping into the equity of your current home through a home equity loan or line of credit (HELOC) can free up cash for your down payment. However, you’ll juggle two mortgages and interest payments until your old home finds a new owner.

3. Sale-leaseback agreement. In some cases, the buyer of your current home may agree to a sale-leaseback arrangement, allowing you to reside in your home for a set period post-sale. This can provide much-needed breathing room to find your next abode.

4. Evaluating finances. Assess your financial landscape closely. Do you have ample savings or investments to dip into? Is there room to tighten your budget temporarily? A thorough financial review can reveal if you can span this gap without resorting to loans.

5. Renting temporarily. For some, renting a temporary space is a viable stopgap, eliminating the stress of carrying two mortgages. Yet, consider moving expenses and potential rent fluctuations in your calculations.

Embarking on buying a new home before selling your existing one necessitates careful consideration and informed decision-making. Thorough research, asking the right questions, and weighing all available options are vital steps in this journey.

Should you find yourself ready to explore these avenues further, don’t hesitate to reach out by phone or email for personalized advice and support. Together, we can navigate the path to your next home with clarity and confidence.